The Banking Commission reported back on Monday with a ‘reform’ that will disappoint everyone – both the public and the banks. Our analysis is below.
We’ve a number of events coming up around the country, the biggest of which is our conference in London on Sat 29th October, which will feature two MPs, the ‘HBOS Whistleblower’ and representatives from some of the big charities focussed on poverty, debt and the environment. This is filling up quickly so get your ticket before the end of this month to quality for a 25% early bird discount.
a) Sun 18th September – second Bath Meetup
b) Sat 24th September – Moving Planet Day – Money and the environmental crisis, London
c) Wed 28th September – Ayr Meetup
d) Thurs 29th September – CONFERENCE “Banking – Seeking a New Paradigm”, Winchester. This event will also be the launch of the New Economics Foundation’s Book “Where Does Money Come From?” (the result of collaborative work of Positive Money team, the New Economics Foundation and Professor Richard Werner based on the facts)
e) 29th September–2nd October – CHICAGO Ben Dyson of Positive Money will be speaking at the American Monetary Institute annual conference.
f) 13th October – Bristol Meetup (more details coming soon)
g) 26th October – Plymouth Meetup (more details coming soon)
Book your place now with 25% discount
If there is nothing happening near you, you can organise a local meetup
Our analysis of final report of Banking Commission
The Independent Commission on Banking was established one year ago to consider structural reforms to the UK banking sector to promote financial stability and competition. It released their final report on Monday this week.
The report is no surprise to us. In short, the Independent Commission on Banking has not addressed a fraction of the fundamental problems with the modern banking system.
The Banking Commission is not a response to the financial crisis and has done nothing to fundamentally change the likelihood of future crises. It has done nothing to reduce the harm that banks can inflict on the rest of the economy, or to look at the impact that the banking system has on poverty, debt and inequality.
Rather than looking at fundamentally changing the nature or structure of banking, they have focussed on what to do after the fatally-flawed banking system inevitably implodes.
Imagine that the government establishes a Commission to report on measures to reduce traffic accidents and deaths on the road, giving them a staff of 15 civil servants, a budget of millions, the opportunity to consult the public and a year to develop some radical reforms. Twelve months later the Commission reports back, but rather than suggesting measures to reduce traffic accidents, the Commission simply proposes that the crash site is cleaned up slightly more effectively, the bodies are removed more discretely, and post-crisis counselling is provided for the victim’s families. No mention of traffic calming, traffic lights or fundamentally re-designing the roads to make them safer; just an assumption that fatal accidents are inevitable and the best we can do is focus on the post-crash clean up.
This has been the approach of the Banking Commission.
You can read our analysis here.
The banking sector has lost its way. It’s become socially destructive, sucking the life out of the real economy, contributing to poverty and crushing debt and destroying the environment at the same time.
We’re working towards a banking system that works for society and not against it. The projects we’re running are essential if we’re to get a banking system that’s socially useful and helps us tackle the social, economic and ecological challenges that we face today.
At the moment we really need people to help with spreading the word ONLINE.
If you want to donate a bit of your time, please get in touch. If you know somebody who might be interested, feel free to send them this request. (reply to: email@example.com)
The Latest from the Blog
£45bn Subsidy for Too-Big-to-Fail Banks – read here
Monetary Reform in US Congress – read here
Prosperity Can Only Come from Change – read here
The Consumption and Saving Trend of the UK Households’ – read here