The only banking inquiry worth having

Posted: July 3, 2012 in Uncategorized

I don’t much care if Bob Diamond’s gone. I mean, I’m glad he’s gone, but it’s all a bit of a distraction.

I don’t much care about the government’s inquiry to find out exactly who did what when in the Libor-rigging scandal. I mean, it needs to happen, but we know enough already to make our minds up.

And I don’t much care for an inquiry into the culture of banking – we’ve all known for ages that this is a thinly-veiled criminal operation, even if the politicians have only just found out.

Nor even do I hugely care for an inquiry into the relationship between bankers and politicians – again, we all know the former had the latter wrapped round their fingers, via donations, lobbying, cronyism and the politicians’ own ideological delusions. For most of us outside Westminster, the only thing we want from our politicians is to sod off and let some grown-ups take charge.

What I want is an inquiry into banking. Banking as an industry, as a service, as a concept. I want an inquiry that, yes, sifts through the details of the Libor scandal, and the details of how bankers behaved and misbehaved, and pins responsibility where it needs to be pinned.

But all that will be sepia one day. No inquiry into the Libor scandal will have a worthwhile legacy unless it addresses and answers the following:

– why were the investment banks bailed out?

– where did the bailout money – our bailout money – go?

– what roles are and have been played, both negatively and positively, by investment banks in Britain’s economy and politics?

– what is the proper role and purpose of investment banking and retail banking for Britain’s public interest?

– what is the best structure of ownership and regulation to deliver that proper role and purpose?

– what is the best means of providing credit to the economy, and internationally, what would be a better way of providing credit to governments?

I want to know why we bailed out the criminal enterprise that brought down our economy to the tune of £1.2 trillion. I want to know what has been done with that money, and if and how we can get it back. I want to know what bits of investment banking, if any, are of use to the rest of us – because the rest needs to go, now. And I want to know why banking is assumed to be best under the control of spivs and shareholders.

Anything less – anything less – is just noise.

http://athousandcuts.wordpress.com/2012/07/03/the-only-banking-inquiry-worth-having/

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Comments
  1. You ask, “I want to know what has been done with that money, and if and how we can get it back” – sorry to tell you, though sure you know, we will NEVER get it back.

    All those people will never get their job back – the rest will never recover lost wages. The wage cuts will never be paid back up. Those that lost their home will never get it back again. The pensions will never be made up to what it should be. Indeed, if the bankers ever do give the money back – it will be worth much less than it was – and the government will keep most to spend on whatever they want it for at the time. We may get a couple of hundred back as bribe towards the next election if we are lucky.

    I am currently in FOS process with Barclays – and honestly it is not just rogue traders, the corruption is spread through the company. They will not answer relevant questions put straight to them. Even the ‘final response’ letter does not follow the rules – and the FOS are actually considering it as a ‘final response’. Proving the FSA lacked integrity with that official complaint was easy given the level of curruption within the authorities – the whole financial system stinks.

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