Sunday, November 01, 2009

Labour's bank u-turn

The proposals coming out of the Treasury today that the big nationalised banks will be partly broken up raises the question of why on earth did Gordon Brown push through the very opposite last year with Lloyds and HBOS. This merger was very much the pet project of Brown. It has been a disaster for Lloyds. And it also created a vast banking organisation which a year later the Government wants to reverse. The merger went ahead because Brown did not want another nationalisation on its hands. The outcome was that instead of nationalising HBOS it has had to part nationalise a far bigger share of the banking sector which itself was weakened by the decision to merge.

It seems that the Government are making policy up as they go along and it changes regularly.
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