Prime Minister David Cameron has been accused of being "out of touch" on bankers' bonuses by Labour leader Ed Miliband.
As the pair met for their first Commons clash of the new year on 12 January 2011, Mr Cameron said the last government had failed to regulate the City effectively and impose conditions restricting bonuses when it bailed out the banks.
Mr Cameron said: "That is why no one will ever trust Labour on banking or on the economy again."
But Mr Miliband said: "Let me tell the prime minister: he is now in the absurd position of being more of a defender of the banks than even the banks themselves."
Royal Bank of Scotland chief Stephen Hester had "no great problem" with greater transparency on pay and bonuses, Mr Miliband claimed, but Mr Cameron was failing to push ahead with the measures.
The Labour leader called for the government to impose a tax on bonuses, which he claimed would raise more money than the bank levy introduced by Chancellor George Osborne.
But Mr Cameron denied Mr Miliband's claims that bankers had been given a tax cut, telling MPs that this year the banks would pay £20bn in tax, a rise of £2bn on last year.