Friday, 13 September 2013

Lehmann Brothers

(Updated 15/9/ below)
Five years ago the plug was pulled on Lehmann Brothers setting in train a series of banking crises that nearly broke the financial systems of the world. Listening to the Tory propaganda anyone would think that it was NewLabour who were responsible. There were many reasons to condemn NewLabour but this was not one of them. Underestimated Alistair Darling quickly grasped the enormity of the problem and resisted calls to allow the banks to go bust. At one point RBS – at that time the world’s biggest bank – was three hours away from collapse. At great cost to the public purse, the banks were bailed out and the financial system survived. So far so good?

Well no. The greedy chancers who brought the financial world to its knees are still in business. In fact they have just awarded themselves more massive bonuses again this year. Where were the howls of outrage from our government? 

There weren’t any. They could not really say much because the Conservative Party receive between 60-70% of its funding from these conmen who by now should be in jail. And by lying big and often to their media chums about how NewLabour caused the financial crash they have deflected blame from where it should truly lie. 

Trebles all round!

Update 15/9/13
Listening to a world service discussion in the wee small hours about the collapse of the bank, several points emerged.

  • ‘Too big to fail’ still applies - nothing has been done to curb these massive banks despite much huffing and puffing by the politicians.
  • Sarkozy asked this at the time, “How come bankers can work out who deserves the huge bonuses but are incapable of answering who was responsible for the meltdown?” The stock response "It is the system's fault" does not wash.
  • Private investment banks went public in the 90’s - with ‘limited liability’ which meant when the thing went belly up those responsible did not suffer - it was left to the taxpayers to pick up the bills. These companies should be ‘unlimited liability’ which would mean bankers  would lose their homes, private jets and yachts. 
  • Very little has changed because the problem needs global regulation.

In the meantime the poorest in our communities continue to pay the most proportionately. 

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