Make the bankers pay for Northern Rock crisis
Bring the banking system into public ownership
The Northern Rock crisis represents the worst banking crisis in Britain for more than thirty years; but there is more to come.
While the markets have reacted to last nights cut of a 0.5% in US interest rates like a drinker in a pub being offered free alcohol – the reality is we are witnessing the tremors of a coming economic earthquake that will shake capitalism to its core.
The City and finance sectors’ mega-profits have been based on utterly blind, short-term gambling, with no thought for the consequences other than how to maximise profit.
Northern Rock was hit hardest because it was especially exposed to the money markets – for 70% of its funds – but all the banks and building societies are vulnerable. However, the orgy of the housing, land and debt bubbles have allowed the elite in Britain access to super-profits which have grown to unimaginable levels. Last year alone the bonuses of the City fat cats grew by a quarter to an incredible £26..4 billion. Almost an entire years spending for the Scottish government on health, education, transport, housing and social work.
It will not be the banks’ chief executives that pay the price for a further development of crisis. As ever, it will be ordinary mortgage and credit-card holders, savers, and bank workers who pay the price.
Tommy Sheridan said: "Solidarity supports the democratic public ownership of the major banks and building societies with compensation paid to small shareholders and investors.
Instead of being run for the profits of a few fat cats to maximise their short-term profits, they should be run in the interests of society as a whole.
Public ownership of the banking industry would end the obscene loan sharking where billions are made by banks off the backs of working and middle class families to pay for a roof over their heads and the necessities of life.
It would also allow mortgages and loans to be made securely at genuine low interest rates making it easier to provide affordable housing for all. "
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