Wednesday, 24 June 2009

Mutualisation the solution to 'out of control' banks

Leaked plans by the Tories propose to abolish the FSA and hand banking regulation to the Bank of England. Meanwhile, the Government continues to fail to intervene to control the banks that have been nationalised, and to rule out any major steps on regulation.

John McDonnell MP, LEAP Chair, said:

"The banks remain out of control, with the City ratcheting up the prospects of a return to the casino banking, sky-high bonuses, and all the associated risks to the stability of the economy.

"We cannot leave the control of our banks in the hands of a small group of speculators and a Government unwilling to act decisively.

"It is time now to develop new forms of public ownership and to bring forward proposals to mutualise the banks to develop a co-operative model of accountability."

25/06 update: Prem Sikka has an excellent article on Guardian Comment is Free on the Banking Crash and Lack of Reforms.

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