Tuesday, 5 March 2013

Time for radical action on the banks

The news that the banks have not been passing on funds from the Funding for Lending Scheme (FLS)but using it to further prop up their balance sheets should come as no surprise.

A less commented on side effect of the FLS is that the banks no longer have to provide any sort of interest rate to savers, so this particular move from the government has enabled the bankers to once again rip off another diligent part of the population.

The bankers are the modern day equivalent of the robber barons, only they are involved in bandit capitalism.

First, they have to be bailed out due to their own reckless behaviour. Then they rip the tax payer off again with the libor fixing and payment protection scandals.

More funds are then shovelled in their direction via the £375 billion plus of quantative easing – again these funds have been used to shore up balance sheets rather than being put into the real economy to stimulate growth.

How much longer is this going to carry on? There are bleatings from the politicians about welfare benefit cheats but when it comes to ripping off the tax payer the bankers are in a class of their own. Privatising profits whilst expecting the rest of us to pick up the losses.

The government needs to act decisively against the banks breaking them up and taking direct control of those where it is already the major share holder. At the moment the banks continue as before, with bonuses as usual, whilst the rest of us suffer the consequences.

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