Jim Hacker is vexed at his lack of popularity within the press, and particularly at rumours of a scandal in the City. Sir Humphrey Appleby advises him not to act unless the rumours become fact, and Bernard counsels that the Prime Minister spends too much time worrying about what the newspapers say. Hacker responds that with a party conference coming up, he has little choice but to worry.

Sir Humphrey lunches with his old friend Sir Desmond Glazebrook, the Chairman of Bartlett's Bank, who admits that the reports from the City are true. A major bank named Phillips Berenson is about to become insolvent because of dishonest activities by its directors. Furthermore, Sir Desmond states that his own bank has lent to Phillips Berenson (as they seemed "decent chaps") and stands to lose a great amount. He suggests that the Bank of England intervenes to bail them out at the taxpayers' expense, and, seeing as a new governor is about to be appointed, he asks Sir Humphrey if pressure can be brought to bear on the PM to select the right man for the job — i.e. someone in whose interests it will be to assist in the cover-up.

The problem is that the favourite for the post is Alexander Jameson who is known for his scrupulous honesty and integrity, which has earned him the sobriquet "Mr Clean". Sir Desmond is concerned that if Jameson is appointed he will expose the facts behind Phillips Berenson and other potential scandals which could cause a loss in confidence in the City and an economic collapse.

Hacker goes over his party conference speech with Dorothy Wainwright, his political advisor, and is gloomy that there is no good news in it. While trying to come up with a more optimistic and sustaining speech, they discuss Phillips Berenson and the PM remarks that City scandals always look bad for the government. He decides to appoint Jameson as governor in order to clean the City up and will announce it at the party conference. He sends Bernard to fetch Sir Humphrey.

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Wikipedia