Tuesday, October 28, 2008

corporate sociopathy

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"Figures released yesterday, however, from financial data provider Moneyfacts showed banks were failing to pass on interest rate cuts to mortgage borrowers despite making severe cuts in savings rates. It said most institutions had already passed on the last half-point base rate cut to savers while holding back on cuts in home loan interest rates.

"Some providers are using the base rate cut as a way of increasing their margin for risk, by not passing on the full cut to mortgage customers but passing the cut on in full to savings customers," it said."


Yes, the £50 billion bail out and reductions in interest rates are being used by the surviving banks to increase their own margins and not to stabilise their business models.and maintain the supply of affordable credit to the public. So, why did the government bother investing in the banks in the first place? Why didn't it leave them to collapse and simply expand its own financial service provider- the Post Office- as proposed by Jon Cruddas? It would be in charge of the entire system by now, having bought out the infrastructure of the now-insolvent banks. But no, the minority take precedent over the majority and another opportunity to work in the interests of the public is successfully dodged.


Alistair Darling gets the idea:

"So basically, you privatise something that ends up making £1200 a second and you nationalise something that loses £1200 a second.

"Swings and bastarding roundabouts."

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2 comments:

  1. But they haven't actually got the money yet. They are easing credit markets slowly (as evidenced by falling Libor)and rebuilding balance sheets (Not their idea: a requirement of the regulation).

    Never let the facts get in the way of a good anti-business rant, you lefty twat.

    And you call me 'ignorant'.

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