Why the government is taking common shares in these banks

Travis Bickle

I expect it'll be something to do with Thatcher and 1986.

Mike, Brighton

Nooo, it will be an issue that is global but started in America.....

mac

Somebody hasn't been doing their homework properly for 11 years, but as the supine (parliamentary majority) teacher has consistently acclaimed that homework as the product of a financial alchemist - an impression the BBC in particular is falling over itself to promote - his tricksy antics are still not widely seen by the electorate as a re-run of previous economic train-wreckage by socialist governments.

David Lindsay

Of course there should be seats on the Boards. As much as anything else, no one thus appointed could possibly be any worse than those thus replaced.

As of today, we are the Queen's bankers. And Tony Benn's, I bet. Coutts is owned by the Royal Bank of Scotland. And the Royal Bank of Scotland is now owned by you and me. Give that a moment to sink in.

Today also sees th first rversal of a Thatcher privatisation. TSB. Here's to many, many more.

TrevorsDen

Mr Lindsay - all that depends on how big a liar you think Alistair Darling and Gordon Brown are - as they say their intention is to return these Scottish banks into public ownership as soon as possible.

Since all the able people will move to Barclays or HSBC it hardly matters who the govt put in.

David Lindsay

I give Barclays (in particular, and my bank) a week. As for HSBC, how do you compete with several other banks backed by the State itself? You can't.

"As soon as possible" can mean anything, including never. See my comments elswhere on why the two Scottish ones, in particular, should always continue to have large central government stakes in them. As I fully expect that they will.

Keith

Since Barclays hasn't gone to government for a handout but says it can manage, then why does David Lindsay give it a week?

mitch

"I will not allow house prices to get out of control and put at risk the sustainability of the recovery."
Gordon Brown's 1997 Budget Statement

"Under this Government, Britain will not return to the boom and bust of the past."
Pre-Budget Report, 9th November 1999

"Britain does not want a return to boom and bust."
Budget Statement, 21 March 2000

"So our approach is to reject the old vicious circle of the...the old boom and bust."
Pre-Budget Report, 8 November 2000

"Mr Deputy Speaker we will not return to boom and bust."
Budget Statement, 7 March 2001

"As I have said before Mr Deputy Speaker: No return to boom and bust."
Budget Statement, 22 March 2006

"And we will never return to the old boom and bust."
Budget Statement, 21 March 2007

Ken

mitch at 7:51pm
...and do email that to CamOsb...

Tiberius

Brown now has direct influence in Lloyds TSB which provides working capital to the business of which I am FD.

It makes me feel literally sick.

David Bouvier

The directors, while appointed by a shareholder, have a fiduciary duty to act in the interests of the whole company, using their powers for proper purpose, and to avoid conflicts of interest.

If they follow the governments directions instead they are exposing themselves to legal action - and so is the government if they are shadow directors.

The banks are not Gordon Browns piggy bank while there are minority shareholders.

Mark

Apart from repeatedly stressing Brown's complicity in this disaster, the Tories should push for the following:
1. Clarity as to what is meant by getting the nationalised banks to return mortgage lendnig to 2007 levels. Brown seems to think that this will send house prices upwards again. He seems to be trying to fix the housing market, perhaps only briefly, for a snap election early next year. The trap - fairly obvious - is that in challenging this nonsense the Tories will be said to be in favour of lower house prices and against home owners. This might be picked up by the Mail, for example. But it is nonsense and should be attacked - the line should be that imprudent mortgage lending got us into this mess and more of it will not get us out.
2. There need to be transparent (key Brown word, even though he can't pronounce it) accounts of the nationalised banks, with restatements of the value of assets which were overstated in earlier years. These should explain which assets were overvalued and why. This should be done by independent auditors, probably new auditors. Brown has to sign up to this because he is pushing for more accurate accounts. This will show the extent to which our banks' problems were home grown rather than imported from the States.

Damon

The Banks the government is investing in have to revert back to 2007 lending levels. Given the UK has the highest levels of household debt in the world already. How can you solve a problem of too much debt with more debt? I'd like to know how that helps the UK. Best guess, is that Brown wants it to give the economy an artificial boost prior to the 2010 General Election.

Mark

And the Tories should be asking whetehr RBS could sell off/float NatWest into the private sector. It may be that the toxic stuff is in RBS and NatWest is basically sound.