The Bankwatch

There is a lot of news and mixed messages appearing.  I noted somewhere that the government would take a back seat to company operations despite the ownership of the banks.  The news and the messages are rapidly being overtaken by facts as complete nationalisation is now being spoken about in the UK.

Government to take majority stake in RBS | Sunday Telegraph

Treasury sources confirmed that the Government had drawn up plans to take on a majority stake in Royal Bank of Scotland and big holdings in Lloyds TSB, HBOS and Barclays under its £500bn plan to bail out the banking industry.

… …

Analysts believe a further 20 per cent fall in bank shares this week would leave the Government with little option but to nationalise virtually the entire sector.

I won’t turn this blog into a political forum.  However the political leaning and history of Gordon Brown is unabashedly socialist, and these times fall perfectly into his natural leaning for government control. 

With government representation on the board, their leaning will always be non-market oriented, and more oriented to politics, and re-election.

I fear for the banks and for their future at this time.  That fear is not based in a love for bankers whom I continually criticise.  It is for provision of financial services.  The nationalisation of banks will be accompanied by increased restriction and regulation on financial services alternatives.  The result will be a more expensive banking service.  I may have to rename the blog to governmentwatch.