Should we have a national consumer bank?
The UK government has effective control of Lloyds bank and Royal Bank of Scotland, by virtue of the massive share stakes taken using UK taxpayer funds, and there are some in the Labour Party and other areas of the population who feel it is time for a national consumer bank. However, against this background of renewed optimism and hope for a national consumer bank is the fact that the UK economy is a "free economy" and the introduction of a politically motivated and government controlled banking operation could ruin what has taken many decades to build.
While the short-term calls for more government involvement in the banking arena, and especially mortgage arena, continue to grow we need to remain calm and focused on the long-term picture. Despite the fact that the UK mortgage market was impacted significantly by the credit crunch, which began in America, this is seen by many as a "once-in-a-lifetime" event which is unlikely to be repeated in the short or medium term. However, that is not to say that lessons do not need to be learnt but the fact that many are now looking to totally obliterate the "free market" in the UK is not the answer.
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