£ Billions have been provided to support the banks. Northern Rock and Bradford and Bingley have been nationalised; a majority share-holding has been bought in Royal Bank of Scotland; the government will be the largest share-holder in Lloyds/HBOS. In addition, the Post Office is publicly controlled.
The current policy is to sell the government's stakes to the private sector at an appropriate time, which means, presumably, when taxpayers' support is no longer needed.
This policy is seriously mistaken. Instead, these banks should (in combination) be developed as a People's Bank to provide services in accord with government policies - to increase lending, provide financial services in areas where they do not exist. The latter applies particularly to the post offices - an alternative to closing them.
In addition, there should be negotiations with banks not controlled by the government, backed up by regulation to ensure services in the public interest.
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