Thatcher was warned Big Bang reform of the City would create a bubble that could be 'pricked' by 'unscrupulous' bankers

Cabinet secretary Sir Robert Armstrong set out his increasing disquiet Warned in 1986 memo that corners were being cut in the City Money was being made in ways at least bordering on the unscrupulous Critics claim reforms paved the way for the loadsamoney era Also sowed seeds of 2007 financial crisis which led to economic downturn

By Claire Ellicott and David Wilkes for the Daily Mail

Published: 05:21 EST, 30 December 2014 | Updated: 10:01 EST, 30 December 2014

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Margaret Thatcher was warned that her financial sector reforms would lead to a new culture of unscrupulous practices in the City, according to newly-released government papers.

Her most senior official, Cabinet secretary Sir Robert Armstrong, set out his increasing disquiet about the things that people think are going on in the City.

He said that a bubble was being created that would be pricked and said that corners were being cut and money made in ways that are at least bordering on the unscrupulous.

Margaret Thatcher was warned that her financial sector reforms would lead to a new culture of unscrupulous practices in the City in the 1980s

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Thatcher was warned Big Bang reform of the City would create a bubble that could be 'pricked' by 'unscrupulous' bankers