Moving beyond a failed banking system

So the Bradford and Bingley has failed and is going to be nationalised (at least in part) see BBC NEWS | Business | Treasury to nationalise B&B bank.

Note this:

Our business editor says the nationalisation and break-up of B&B
represents a momentous event in the history of British banking.

He said: "It will mean that every building society that floated on the
stock market in the wave of demutualisations of the past two decades
will either have collapsed or been sold to a conventional bank."

I think it is about time we abandoned these banks that have failed to behave responsibly. Why don’t we return to mutual societies, co-operatives and credit-unions.

Some resources:

I am beginning to think we should be exploring starting credit-unions. They seem a much better way of supporting people by encouraging saving, through local loans and through no silly, unsustainable, dodgy attempts to make lots of money in ways that are not based on reality.

Either that or really go back to small local mutual building societies, something of a scale where every member will know people who have mortgages with them, where re-possessions will be of friends and neighbours and so far more will be done to avoid them. Where defaulters on repayments meet the people whose savings are affected. Where there are no credit-cards, no overdraft facilities, no incentives for people to get into debt.

Small local scale would seem to be a much better option for us all.

We also need a way to invest in local business, keep it separate from people’s basic savings and make it about long term sustainable development of a community through local business. A credit union or mutual society for business rather than domestic loans and facilities.

One thing is for sure we need to build on better foundations than the current banking system, something that puts ordinary people back in charge and where their money is not used for crazy risk taking or huge bonuses.

I have done a quick search and have not found any local credit-unions for people in East Northants (update many parts of Northamptonshire are covered by what looks like a council sponsored Credit Union: Northamptonshire: How do I join a Credit Union?), but I see many churches across the country supporting their local credit unions. Maybe we should be doing the same.


One thought on “Moving beyond a failed banking system

  1. Blue, with a hint of amber

    It is definitely time to look at mutuality not to profit.
    Look to long term not short term.
    The whole mess is caused by untempered greed.
    I think credit unions, co-ops, mutual societies, local businesses etc have to be the way forward.


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