The co-founder of one of London’s biggest hedge funds has criticised several players across the capital markets – from banks to credit rating agencies to politicians such as Hank Paulson – and has argued the “financial sector has become much too big”.

Paul Marshall, chairman of Marshall Wace and one of the industry's best known philanthropists, criticised the world of finance in a speech made at an event hosted by the St Paul's Institute, a religious think tank based in the City.