The banks’ reverse takeover of Britain

As we wait for the next nationalisation – probably Lloyds Banking Group – a horrible thought occurs. Something has gone badly wrong. It is as if there has been a silent coup d’état – instead of the taxpayers owning the banks, the banks now seem to own the taxpayers. They have been given access to the present and future earnings of the British public, which will plug their mind-blowing losses.

In my News of the World column today, I look at how Britain became a bankocracy – the government being so dependent on banking profits that it had a clear incentive not to ask too many questions about how this money was being generated. This isn’t venal, I don’t think it was some mafia-style racket. The money was there, the government just took it. Bankers were almost deified, invited to do various reviews (NHS, skills, etc) and feted like the masters of the universe.