“Dear oh dear – dire, weak, pathetic and really bad.” This appalled reaction from assorted Conservative activists to David Cameron’s handling of the £400bn banks bail-out reflects the problems for the political right in responding to the financial crisis.

Instinctive advocates of free markets and minimal regulation, the Tories have struggled to strike the right balance between defending capitalism and meeting populist demands for retribution against the banks. Mr Cameron has gone from lambasting the nationalisation of Northern Rock as a “disaster” in February to this week offering “constructive support” for plans for the taxpayer to take multi-billion pound equity stakes in the banks. Thatcherite MPs told the FT there was a sound rationale for this apparent inconsistency. The banks’ unique role in supporting the economy makes them im­mune from the rightwing doctrine of condemning state intervention to prop up ailing companies.