Nonetheless, the Government has been negotiating places on boards.
As Alex Singleton tells us in the Telegraph this morning:
There is a real risk that boardroom influence by the Treasury could see the two banks where the Government will own over 50 per cent of the shares,
RBS and HBOS, perform poorly compared with their private peers. Even
after HBOS's planned merger with Lloyds TSB, the Government will own 41
per cent of the enlarged group.
This socialist government, with the backing of the Tory Party and Libdems, are in for the long haul, intending to not only stay in the banking business, but to provide political influence to the way banking, and mortgages are presented to the voting public.It must also be remembered that throughout this crisis, Government has no money of its own. These massive sums that are being used to purchase the banks comes from lending, creating more debt for the nation, and ultimately will take taxpayers generations to pay off.
The political impulse will be to prevent businesses going to the wall
during this recession (including those which were unprofitable in the
boom years and relied on mushrooming overdrafts). Likewise, Westminster
pressure to issue large numbers of mortgages, during a recession in
which house prices are falling, is likely to encourage irresponsible
lending.
Is this really the action of a responsible Government, is it good for the taxpayer and the people of Britain or just a method of increasing political influence over our daily lives?.
This is your money they are playing with, making you pay for the ability of government to gain further influence over you.
Beware the fine words, judge politicians on their actions, not their words. (anyone heard from the Tories lately?)
