Should there be a commercial bank owned by the government in the longer term?
As the UK government continues to hold significant stakes in the likes of Lloyds TSB and Royal Bank of Scotland there is a growing debate as to whether the UK authorities should operate a majority controlled bank in the UK commercial sector. The ability to potentially lead from the front has attracted the attention of many MPs and regulators although there are a number of issues such as conflicts of interest which would need to be addressed in the short, medium and longer term.
In many ways the UK government and the UK regulators have been caught short because of their limited insider knowledge of the UK banking sector. They appeared unaware of the significant increase in risks over the last few years, as profits were chased, and they were ill-prepared for the eventual credit crunch and economic downturn. While the Bank of England is effectively the centre of the UK banking system there is a growing feeling that the bank is short on commercial experience on the ground floor.
Whether this would make a significant difference in the longer term remains to be seen but the UK government and the UK regulators were left wholly exposed when the downturn finally came and action was required.
Share this..
Related stories
British Airways talks collapse
Talks with the conciliation service ACAS have collapsed without an agreement between British Airways and the Unite union. This is something of a body blow to the two parties as hopes were high that an agreement could be reached and finally this most damaging flurry of industrial action would come to an end. So what next for British Airways? There is now talk of further strike action in August,...
Read MoreUK petrol prices could rise 15p a litre in 2010
The Petrol Retailers Association has set the cat amongst the pigeons with a suggestion that UK petrol could rise by up to 15p a litre purely and simply because of tax changes and a continuing upward trend in the price of oil. Aside from the fact that the VAT has now returned back to 17.5% there is further speculation we could see an increase to 20% after the election. The government is also set to...
Read MoreWas Barack Obama really too tired to see Gordon Brown last week?
As Gordon Brown looks back on his visit to the US and the rather low-key entrance afforded to him by the new US government the US authorities are now suggesting that Barack Obama was "too tired" to welcome Gordon Brown "properly". While this may go some way towards diffusing the suggestion that he had been sidelined by the US administration there is no getting away from the fact that his visit to...
Read MoreIs the UK car scrappage system value for money?
The consumer magazine Which has today stepped into the debate regarding the UK government's car scrappage system and whether it truly does offer value for money. Under the scheme, motorists will be able to scrap their old cars (in excess of 10 years old) and receive up to £2000 off a new vehicle, which will be funded by the government and car manufacturers. However, the Which magazine has found t...
Read MoreCould problems in the Eurozone hamper the UK economic recovery?
While officially the UK economy moved out of recession in the final quarter of 2009 there are concerns as to whether the 0.1% increase in economic activity will be downgraded in the short term. On the back of this we now have significant issues within the Eurozone with the Greek economic collapse set to spread to areas such as Spain, Portugal and possibly elsewhere. There is growing concern that w...
Read More