SHADOW

Chancellor Ed Balls faces embarrassment over claims he played a key role in the banking crisis.

Author and financial journalist Ian Fraser’s book Shredded says: ‘RBS chief executive Fred Goodwin was a frequent visitor to Ed Balls’s Westminster office. He was eager to make sure that any adverse legislation or regulation would be watered down or seen off.’

The book also claims Mr Balls told financial journalist Nick Kochan: ‘Fred was a regular visitor. He always wanted to ensure that we did the right thing for the banks. And he always came to see me rather than Gordon Brown.’

Mr Balls’s spokesman said: ‘Of course Ed met with the chief executives of the main banks while he was at the Treasury. It would be odd if he hadn’t.’