13 Apr 2011

Banks escape any real reform

The government's Independent Commission on Banking have released their half time report, where they laid out their favoured approach to banking reform. The headlines have banks sighing with relief - see Guardian here: "More than £1bn was added to the stock market value of three major banks after the independent commission on banking stepped back from endorsing some of the more radical options designed to ensure taxpayers will never again have to bail out the financial system."

As Positive Money say: "It was a step in the right direction - if you run a bank. However, if you were looking for any fundamental changes to the way banks operate, or any limits to the damage they can wreak on the economy and society as a whole, you're likely to be disappointed."

It is worth looking at the video by Positive Money below - it reveals the shocking subsidies to the banks and the worrying misunderstanding by the Commission. This is deeply deeply deeply worrying - it will not stop the campaign for reform:

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