POLITICIANS AND BANKS

Gordon Brown, the saviour of the Western World during the recent Banking crisis, left an uncontrolled mess in Britain when he was ousted from power at the recent elections. David Cameron now finds himself in the unenviable situation of having to clear up this mess !!!

This Blog clearly said early this year (February, 4,10, and 28), that any Government must legislate to control the activities of Banks.

Diplomatic words and promises by Politicians or Bankers to each other will achieve nothing !!! What is required are new, fundamental constraints which oblige Banks and Bankers to change their ways. Without laws and sanctions nothing will change.

Bankers, and above all International Bankers, have a duty to enrich their shareholders. They have no legal responsibility to do what a Government would find agreeable if it does not enrich the Bank's shareholders.

President Obama clearly said that Banks are too big !!! He is absolutely right !!! No one country can pass laws which could bring multi-national, multi-continental Banks to heel. Some of the big Banks are even bigger than the countries in which they operate.

Only two alternatives are available to legislaters to control the situation;
- agreement on a world-wide basis to control Multinational banks. This would necessarily become a long term project.
- local legislation to favour "National Local Banks" which are independent of foreign control.

If Multinational Banks are deprived of local cheap "Tap" money, this would favour local banks who could then lend the money to industry and local clients at reasonable interest rates. This would enable a government to introduce policies to help those in most need. The interest rates which the Big Banks want to impose cripple anything a Government has in mind.

Everyone knows that Banks were bailed-out after they made losses not from investments but speculative "bets" on financial markets. Had they stuck to the well tried principles of yesteryear the current tensions and suspicions surrounding the financial market today would not exist.

Who talks about usurious interest rates or exhorbitant bank or credit card charges ? Only the consumer !!! There are too many similar examples to mention for an article like this !!!

David Cameron must lead the way in Britain, legislate and introduce sanctions. He must coerse the Banks to fall into line !!! The E.U. will not help, only talk, talk, and talk. There is no majority in the E.U. Parliament !!!