Monday, 13 October 2008

An historic day for the banking system

Like I guess a good number of other people I don't fully understand all the technical side of today's bail-out of the Royal Bank of Scotland, HBOS and Lloyds/TSB. And of course the 'telephone number' figures quoted go right over my head, more relevant perhaps is the percentage of each bank now owned by the taxpayer. General agreement then between the main political parties that the rescue plan is the least worst option.

Joint general secretary Derek Simpson of the union 'Unite' has demanded that there be no repossessions so far as the nationalised and part nationalised banks are concerned. Now this whole matter of repossessions is a very fraught subject apart from the obvious trauma of those who are directly affected. If the defaulters to the banks are allowed to stay in their homes (perhaps some system could be in place to change the mortgage to a rent, there's an idea worth mulling over) then those other folk repossessed from homes where the lender concerned hasn't been the recipient of public cash will understandably cry "foul" I would have thought. In a nutshell we wouldn't have anything like a level playing field. On the other hand if people are thrown out of their homes when the lender is RBoS, etc then the general population(and Mr Simpson) wouldn't be too comfortable about that! And of course if children are involved then an obligation to rehouse falls on the local authority does it not.

There's a lot more one could write about these interesting times but it's getting late in the evening and I've no intention of continuing this blog tonight. Other things are happening but they can wait for tomorrow.

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