“It is good that excesses in the banking sector are brought to an end but it does mean our revenues [via taxation] suffer as a result.”
This makes about as much sense as saying, for any person X (X=Compulsive Theorist, for instance): "We should double X's salary, this will put him into the high tax bracket and increase revenues.". Which is to say it doesn't make any sense at all.
A more serious post tomorrow on wages and incentives.
(*To be fair to Darling, I don't know the full context of his remarks, and he may have meant something more sensible.)