Press reports have stated that the Chancellor, Rt Hon George Osborne MP, is to use his Mansion House speech this evening to announce the sale of Northern Rock rather than convert it in to a mutual institution.
Speaking ahead of the Chancellor’s speech, Peter Hunt, Mutuo Chief Executive said:
“If the Chancellor announces his intention to sell Northern Rock this evening before properly examining all options for a mutual, then this will be disappointing news. The Coalition has stated its commitment to foster diversity in financial services and promote mutuals. Clearly, Northern Rock provides an excellent opportunity to take this pledge forward and I hope he will reconsider.”
To read Prof Jonathan Michie’s report ‘Converting failed financial institutions into mutual organisations’ visit: http://www.mutuo.co.uk/wp-content/shared/Converting-financial-institutions-into-mutual-organisations-final.pdf
Let us hope that before the full report on banking is published Mutuo and others have more impact. Large parts of the nationalised banks were formally mutually owned and it would a positive step to see that restored. Part of the problems with the banking sector is the dominance of the shareownership model.