Column: Are there any silver linings from the latest banking scandal? (From Lancashire Telegraph)
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Column: Are there any silver linings from the latest banking scandal?
11:59am Thursday 5th July 2012 in Jack Straw column
By Jack Straw, MP for Blackburn
Are there any silver linings from the latest banking scandal?
There needs to be, given the damage already caused to Britain’s reputation from the revelations that staff in Barclays sought to rig the key interest rate for lending between banks.
It would of course have been far better if our banks and financial institutions had been behaving ethically, by the rules which they expect customers to observe.
But I can see two linked benefits from the opprobrium which now surrounds our financial institutions.
The first is that we should see a stop to those at a senior level being paid ridiculous amounts, on the threadbare excuse that they are an exclusive group for which the rest of us should be deeply grateful for the benefits they bring to the UK.
The second is that there is a sustained rebalancing of the economy in favour of one of our traditional strengths – manufacturing – and through that, more wealth spreading to the Midlands and the North.
Indeed, there is some evidence that is starting to happen, with manufacturing output increasing as a share of our GDP in both 2010 and 2011.
Over the last three decades, too many of our brightest and best have made their careers in finance.
That includes a quarter of physical sciences and engineering PhD graduates.
We need these people to be attracted back to manufacturing, where they can make direct use of the skills taxpayers have invested in.
If this were to happen, then it’s that vast majority of people who live outside London and the south-east who would benefit.
That’s urgent.
For example, jobs in the north-east and north-west of England are currently being lost at four times the rate of the rest of the country (an increase in job losses of 18 per cent in 2011, compared to 4.5 per cent in rest of England).
In recent years, we’ve all been mesmerised by the alleged importance of the City of London – and Labour should have done more, sooner, to help manufacturing.
This latest crisis presents us with a chance to put that right.
Comments(8)
Ken Shuffles
says...
3:14pm Thu 5 Jul 12
Good call
says...
6:27pm Thu 5 Jul 12
Ken Shuffles wrote:Money isn't based on gold my friend, the globalist banking cartel would not allow a gold or silver backed currency.
If cash was based on arrogance and stupidity instead of gold there wouldn't be a bank big enough.
Excluded again
says...
9:58pm Thu 5 Jul 12
There are some banks without gambling divisions (sorry, investment banks), but of you can't be bothered checking which they are, then there are building societiies, friendly societies or credit unions.
If we leave our money in the gambling banks, then they will gamble with it - and come to us, the taxpayers, to bail thme out when they lose it again. If they don't have our money, then they will have to gamble their own money. The banks might be a lot more careful if they had to gamble their own money.
So, it's up to each of us whether we put our money in the gambling banks or not.
Kevin, Colne
says...
7:10am Fri 6 Jul 12
Excluded again wrote:GoodCall is correct. The banking cartel will not surrender voluntarily their power - control - of credit creation.
Only if enough of us have the sense to move our money from the gambling banks.
There are some banks without gambling divisions (sorry, investment banks), but of you can't be bothered checking which they are, then there are building societiies, friendly societies or credit unions.
If we leave our money in the gambling banks, then they will gamble with it - and come to us, the taxpayers, to bail thme out when they lose it again. If they don't have our money, then they will have to gamble their own money. The banks might be a lot more careful if they had to gamble their own money.
So, it's up to each of us whether we put our money in the gambling banks or not.
Excluded again reminds us that collectively we can have more influence on shaping events through the way in which we spend a Pound than through the ballot box.
This may not always have been the case but once the political
class became prisoners of the banking cartel the impotence of the latter is plain for all to see by anyone that is prepared to observe events with a critical eye.
In passing it must be said that the political class have spent the last three decades grooming the citizenry into consumers and now they stand bewildered, bemused and dazed by the fact that citizens are no longer engaging in civic society. Hint: might there be a connection here?
The current situation is a tragedy. The banking system is vital to the well-being of the economy of a nation: the debate is what kind of banking system? The anser is: not the one we have at the moment.
There are two steps that need to be taken, in my view First, investment and retail banking must be split into two properly, not separated by 'ring-fencing'. Secondly, we need to look again at very basis of fractional-reserve banking.
manyarecalled
says...
9:14am Fri 6 Jul 12
the question is : will they be prosecuted ? they are obviously committing fraud.
Cameron is defending the banks in Europe , possibly because we have become a banana-banking economy.
In the eurozone , they have banned ''high frequency trading''. the effect of this trading is that the banks can adjust the market before you have completed your transaction. so investors won't invest. this is why share brokers are going out of business.
Arthur Bryant the historian made the point that if you destroy the middle class, then the country will fragment. hence Scotland's independence move.it is not sufficient that the top 1% live well.
manyarecalled
says...
9:39am Fri 6 Jul 12
Kevin, Colne
says...
10:21am Fri 6 Jul 12
manyarecalled wrote:The reporting of gold and silver by the maisntream media is rather poor, to say the very least.
As regards gold and silver , no-one has told India , China and the rest of the world that banknotes have replaced them as a hedge against inflation. Gordon Brown sold a lot of our gold with plenty of buyers waiting. there is the thought that banks are after Greek gold .
Rarely do you see artcles about the work of GATA - the Gold Anti-Trust Action Committee, nor do the MSM explain that
there is effectively two gold markets: the paper market and physical market.
There are those who believe that the paper market is being manipulated but as I understand the situation in the physical market there is no shortage of buyers.
The story that I find most interseting is that gold may be reclassified as a Tier 1 Asset for banks.
If this occurs then the folly of Brown - and it must be said the incompetence of the legislature at that time in holding Brown to account - will be complete.
mavrick says...
1:30pm Thu 5 Jul 12
If we could go back to using cash I think Banks and other institutions would have to change their arrogant tune. I as an ordinary working person I don't see a silver lining as clear as you do Jack.