Photo credit MAURICIO LIMA/AFP/Getty Images
This is the location to create and debate 10 potential policies to ensure a fair and efficient system of financial management.
No.1
The instatement of Glass – Steagal as a guiding principle for the banking sector.
No.2
Nationalisation of all major banks indebted to the tax payer for their survival. Only small banks, credit unions and mutual building societies should be allowed to remain independent.
No.3
Automatic and mandatory 10% interest on all invoices outstanding over 60 Days to stop large corporations warping the credit market (Sainsbury / Tesco etc) for their gain
No.4
50% of the board of directors of the regulatory body for the financial industry are to be drawn from business outside the banking industry. it is too important to society as a whole to only allow peop-le with abanking background to monitor the banks.
No.5
Mandatory financial responsibility clause in all banking industry executive contracts and a binding code of conduct like other critical professional services to society.
No 6.
A cap on interest rates at around 10% to both protect the vulnerable in society and the banks and broader society from their own greed. Banks we own can borrow at 1% and lend that money back to us at 25% or more on credit cards and the like. The only institutions who may be allowed to use interest rates above 10% are credit unions registered as charities in order to fund the administration costs on very small loans of less than £250 to people struggling.
Join the debate …LGO
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by goldtop
19 Jun 2009 at 10:24
Re: Number 1.
This act was a US law was it not? Was there a similar thing in the UK that has since been disregarded? I do think that, on the evidence of recent events, there should be a separation of retail and investment banking.
by Jericoa
20 Jun 2009 at 20:14
I am no more than an amateurs interest in finance but as I undertsand it glass steagal ring fences off money from savings and current accounts from people like you and me and prevents investment banks using it as leverage to play the markets.
That seems like a pretty sensible idea to me, it does limit the damage that can be done by irresponsible investment banking, it keeps the trouble with those who created the trouble.
Not sure why you object to that to be honest. irt seems pretty cut and dried to me and was akey recommendation in the US (which was only rolled back relatively recently) to stop a 1930′s type failure happening again.
by goldtop
22 Jun 2009 at 10:09
Jericoa,
“Not sure why you object to that to be honest”
Er…I don’t. Thats why I said-
“there should be a separation of retail and investment banking”
by Jericoa
28 Jun 2009 at 23:29
sorry goldtop I read ” i do not think that’ for some reason when you clearly said ‘I do think that’
by goldtop
15 Jul 2009 at 14:29
On a personal note, I would like to see a re-organisation of tax rules for the self-employed.
I fail to see how small businesses are helped by punitive rates and ‘payments on account’ i.e paying tax on money you haven’t even earned yet.
by goldtop
26 Jul 2009 at 16:47
The Euro. Time to join?