CHANGE IS COMING?

US President Barack Obama’s announcement about two key measures to curb the banks, should be welcomed, the first aims to stop banks from engaging in proprietary trading, private equity, or any other activity for their own profit unrelated to serving customers. The second measure aims to take further steps to limit the balance sheet size of banks so that they cannot in future acquire “too big to fail” status.

President Obama is right to characterise his proposals as a victory for common sense and while we may have some way to g before the banks are forced to act responsibly, the first steps have been taken. I wonder if Gordon Brown (and David Cameron) will have the guts to follow suit sooner or later – or are they and their respective parties still far to enamoured with the dodgy money men in the City of London.

Occasionally you really wonder far we have progressed in the last hundred years of so? In the later years of the nineteenth century and the early years of the twentieth century US Presidents, Presidential candidates and politicians including Theodore Roosevelt (a Republican) and William Jennings Bryan (a Democratic Presidential candidate) were opposed to the power of big business and fought against the dangers of monopoly capitalism (as personified by ‘Standard Oil’ and ‘the Trusts’ in Teddy’s case). In 1896, William Jennings Bryan, a future Democratic presidential nominee, warning against the power of finance, said: “You shall not crucify mankind upon a cross of gold.”

President Roosevelt and William Jennings Bryan had (and has) a valid point - if you believe in the ‘free market’ (and the City money men claim to) then no organisation can be too big to be allowed not to fail. With what amount to massive public subsidies and effectively ‘publicly owned’ banks, run by bankers who are so thick skinned that they carry on regardless with the awarding of bonuses; then perhaps the UK Government should seriously consider breaking up and ‘privatising’, and sell shares on the open market (with quotas on how many shares any one institution can own) – because from where many people are sat these bloated banking organisations appear to be a block on the ‘free market’.

We also need to a degree of similar rules for financial institutions across the globe, off shore must become a matter of historical record – there must be no where the financial institutions can hide and no more endless threats of taking their “ball” (businesses operations) elsewhere and relocating because they have lost their so called special status. it is important to remember, that no one, not even bankers (or MPs) are above the law and no one is above financial regulation and scrutiny.