Like a blonde besuited version of Conan the Barbarian, London’s Mayor pulled out his broadsword yesterday and struck a blow against the dark forces laying siege to the City. Speaking at the Google Zeitgeist conference, he said:

“I think it is completely nuts for people to want, as a matter of public policy, to attack the financial sector,”

“We need a great City where business can raise capital in order to expand and I will continue to protect that,”

…though he admitted bankers have made “huge mistakes”.

Unfortunately it’s not just our home-grown politicians he has lined up against him – EU governments yesterday dismissed British objections to their crackdown on hedge funds and private equity houses, 80% of which are London based. They voted in favour of the Alternative Investment Fund Manager (AIFM) directive.

George Osborne, opposed the plans but already knew the game was up due to overwhelming support from other EU finance ministers.

A bad day for hedgies although the devil will be in the detail.