Banking

[ossian]

I have recently been discussing the merits of a national Bank of Britain, a retail bank that would sevice the needs of the country, and have the interests of the country at heart. I have felt for a long time that this much too important an activity to entrust to a series of private banks whose main priorities are anything but the vital needs of the country. I see that the leader in one of today's papers, paraphrasing a Bank of England official shouts " We will only win this war (economic war) if the banks lend" IF THE BANKS LEND!!!!!!!How did we ever get ourselves into such a mess. Even the recent 80 billion pounds bung was insufficient to get our reprobate banks lending.
l
Stewart

[factor-fiction]

The problem the banks have is they were criticised and got their fingers burned for lending too much money to people who couldn't pay it back, so it's not surprising they are now being cautious.

[bednobs]

http://www.theanswerbank.co.uk/Business-and-Finance/Question1186503.html

[ossian]

Lending too much money, lending to little money. My point is that they are, in the immortal words of a former Labour Home Secretary, John Reid, referring to the Home Office, not fit for purpose. The reason why they lent too much money was GREED and the overweening egos of their Chief Executives, with the well-being of the country away down their list of priorities. I don't believe that placing a firewall between their retail and casino banking systems will work, ever. We need an entirely new banking system and, I believe a National Bank of Britain should play a key part.

Stewart

[factor-fiction]

Would it operate in competition with, or instead of , all the existing banks in the UK?
Who won run it- civil servants?

[ossian]

I would see it as providing at least 50%, perhaps a little more, of the basic retail banking business and possessing a very large degree of operational independence. I would see it as the gold standard in retail banking providing the most competitive interest rates, mortage rates etc It would be run by competent, honest men and women; believe me they still exist.

Stewart