First, let’s be clear that the government, via the Financial Services Authority, is responsible for the situation. The regulator has broken all 12 of its Mortgage Conduct of Business rules and failed to keep the banking industry under control.
So the government should securitise all banks’ lending and place them under direct control with the exceptions of HSBC, Abbey and The Co-operative Bank. Also, staff should be recruited to monitor future bank lending.
All lending rates should be reduced to levels that reflect the base rate. This includes credit cards as the rates on these are ridiculously high.
Lending by banks should be rigorously credit scored and new lending should be at the new low rates. This would allow borrowers to start repaying debts without penal rates of interest.
Finally, let’s take banks out of the FTSE 100 and replace them with companies that make real profits.
Unfortunately, we have to realise we are now in a depression equivalent to or worse than that of the 1930s. The government must take a firm stance and either enter Europe properly and drop the pound or get us out so we can stand on our own.
Joan & Jack Ewins