Genuine ‘people’s’ nationalisation of banks needed now

Solidarity have called for the full and genuine nationalisation of the UK banking system under genuine democratic control, with the current boards being sacked and replaced a mixed management of government nominees and directly elected consumer representatives. 

“We are demanding value for money for the some 1, 000 billion pounds of taxpayers money now used to bail out the banking system and the toxic debt of runaway capitalism,” said Steve Arnott, Solidarity assistant national secretary and author of The Bubble Bursts – a socialist response to the financial crisis.

 “Sir George Mathewson has said recently that we are probably headed into a full scale depression rather than a mere recession, thousands are losing their jobs or being plunged into negative equity every day.  It is clear that the hundreds of billions of pounds of taxpayer’s money flung at the incompetent and greedy banks in Brown and Darling first rescue package have failed to make an impact.  Now even more money is being invested – but what are we getting in return? “

It is becoming increasingly clear that the New Labour strategy of a return to business as usual is untenable,” continued Mr. Arnott “Private banks exist to make profit, not to provide for social need, but we have a historic opportunity to change that.  Instead of throwing good money after bad, we call on Labour in government to grasp the nettle and carry out the full and democratic nationalisation of the UK banking system, sacking the existing boards without compensation and creating new and genuine people’s banks that can provide the social, industrial, environmental and educational investment that the majority of people want and need.” Solidarity is calling for  

• Genuine people’s banks under public ownership and control. 
• Sack the existing boards and conduct a public investigation into their conduct
• No repossessions for those put into difficulties as a result of the crisis
• An end to punitive bank charges
• Cancellation of all local authority housing debt to allow councils to build significant numbers of affordable homes for rent
• Use the leverage of public ownership of the banks to cancel PPP/PFI contracts where possible, and return the assets to the public sector
• Use the leverage of public ownership of the banks to begin the process of bringing the privatised public utilities back into public ownership, beginning with energy supply and exploration companies.