The government is now throwing more money at the UK banking system.
As a nation, we really had no choice, but to bail out the banks. Hank Paulson allowed Lehman Brothers to collapse in the US thinking that the market would correct itself if a weak bank is allowed to fail. Instead, he tipped the whole banking system into further decline.
The government is seeking more competition in UK retail banking. They want to offload the public sector ownership of the banks they saved back to new market entrants. And it’s essential this happens. Listen to the press and the public on the radio phone-ins.
Nobody trusts the existing banks anymore. They are viewed as corrupt and with leaders like Fred Goodwin sailing into the sunset with millions in pension money, who can blame them?
We can go one of two ways.
State-owned banking is one choice. The government has already made it clear that they don’t like this option and they want to offload their present assets to the private sector – and this would happen even faster if (when) the Tory government is elected next spring.
So, our only really option is the new market entrants coming in and cleaning up the banks – like James Stewart in ‘It’s a Wonderful Life’… walk this way Bank of Tesco.