Monday, 29 June 2009

John Pugh, Birkdale's MP, is pictured here with Vince Cable's and is part of his impressive Treasury Team.
One big reform that they have been promoting is a restructuring of the banks. Most people and businesses are interested in 'utility banking' that our High Street banks used to offer. These banks have now entered in what Vince has called 'casino' banking taking on high risk gambles. We need to separate these two functions. We, the taxpayers, can not be expected to bail out the 'casino' departments of our banks.
Writing in the Mail on Sunday Vince said:
'Tens of thousands of people are losing their jobs every week and there is no sign of an end to this industrial blood-letting. Thousands of companies are closing their doors because of the recession or because they cannot get credit from banks.
And at the centre of the crisis, the bankers are rubbing their hands with glee at the way MPs have given them the perfect cover to launch their next bonus offensive'
he continued
'Many firms are closing because of banks demanding extra security, fat fees or cutting credit limits. Since the Government's decisive intervention in October to prevent the financial system collapsing, it has drifted listlessly.
It has let the banks use taxpayers' money as if it were their own, and has been too weak or confused to give firm direction. But maintaining a flow of funding to sound British companies is what the banks are for.'