Wide screen devices may view this page better by clicking here

Arguments for socialism :: Banking crisis

spotCampaigns

spotOrganisations

triangleArguments for socialism

spotPeople

spotInternational

spotEvents

spotAround the UK


All keywords


All Arguments for socialism subcategories:

* Arguments for socialism

Capitalism

Globalisation Anticapitalism

Marxism


Banking crisis


Highlight keywords  |Print this articlePrint this article
From: The Socialist issue 502, 20 September 2007: Nationalise the banks

Search site for keywords: Nationalisation - Banks - Northern Rock - Profits - Capitalism - Banking crisis

Nationalise the banks

Make the bankers pay

As panic spread that the building society Northern Rock was about to collapse, thousands of people queued overnight outside its branches to withdraw their hard-earned savings. Well over 2 billion has been withdrawn.

Hannah Sell, Socialist Party deputy general secretary

This is the worst banking crisis in Britain for more than 30 years; but it is only the tip of the iceberg. The Chancellor, Alistair Darling, has been forced to step in and guarantee the deposits of all those who bank with Northern Rock and "any solvent financial institution" because the government is terrified that the disaster will spread.

However, it is not those who are withdrawing their savings from Northern Rock, as a result of understandable fears, who are responsible for this crisis, which, in reality, stems from the chaotic, unplanned nature of modern capitalism.

In the last five years the profits of the super-rich have grown to unimaginable levels. Last year the bonuses of the City fat cats grew by a quarter to an incredible 26.4 billion - more than the country's entire transport budget.

The City and finance sectors' mega-profits have been based on utterly blind, short-term gambling, with no thought for the consequences other than how to maximise their bottom lines. Northern Rock has been hit hardest because it was particularly reliant on gambling on the money markets - for 70% of its funds - but all the banks and building societies are vulnerable. Barclays has twice had to go to the Bank of England for emergency credit in the last two months.

However, it will not be the banks' chief executives that pay the price for a further development of crisis. As ever, it will be ordinary mortgage and credit-card holders, savers and bank workers who pay the price.

The government has responded by underwriting Northern Rock in order to allow another rapacious high-street bank to buy up what remains of it at a bargain-basement price.

We demand that the major banks and building societies are brought into democratic public ownership with individual savings guaranteed. However, there should be no pay outs to the billionaire fat cats; compensation should be paid to shareholders on the basis of proven need.

Instead of being run for the profits of a few fat cats who are prepared to endanger the entire economy to maximise their short-term profits, the banks should be run in the interests of society as a whole.

We say:

Donate to the Socialist Party

Finance appeal

The coronavirus crisis has laid bare the class character of society in numerous ways. It is making clear to many that it is the working class that keeps society running, not the CEOs of major corporations.

The results of austerity have been graphically demonstrated as public services strain to cope with the crisis.

The government has now ripped up its 'austerity' mantra and turned to policies that not long ago were denounced as socialist. But after the corona crisis, it will try to make the working class pay for it, by trying to claw back what has been given.

Inevitably, during the crisis we have not been able to sell the Socialist and raise funds in the ways we normally would.

We therefore urgently appeal to all our viewers to click here to donate to our Fighting Fund.

Please donate here.

All payments are made through a secure server.

My donation

 

Your message: 

 






Arguments for socialism keywords:

Banking crisis (15)

Banks (291)

Clause 4 (1)

Clause four (6)

Consciousness (11)

Democracy (188)

Minimum wage (312)

Nationalisation (205)

New workers parrty (6)

Northern Rock (34)

Party funding (1)

Photographs (4)

Planning (86)

Podcasts (4)

Socialism 2007 (17)

Socialism 2008 (13)

Solidarity Scotland (1)

Solidarity (381)

The Socialist (1167)

Them & Us (25)

Trade union organisation (7)

Vaccine (13)

What we saw (38)

Workers (1854)

Workers press (1)

Working class (849)

Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

Article dated 20 September 2007

Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party

MEMBER RESOURCES

Pay in Fighting Fund

Pay in paper and book sales

Leaflets

Bulk book orders

New member submission

WHAT'S ON

triangle23 Apr Socialist Party meeting: No to football Super League

triangle26 Apr Oxfordshire & Aylesbury Socialist Party: The May local elections

triangle27 Apr Bristol North Socialist Party: Open discussion - Question and Answers

More...


The Socialist, weekly newspaper of the Socialist Party

Subscribespacer|spacerebook / Kindlespacer|spacerPDF versionspacer|spacerText / Printspacer|spacer1130 onlinespacer|spacerBack issuesspacer|spacer Audio files


Protesting in  Leeds as part of  a Socialist Students day of action on the education funding crisis. 21st April 2021

Protesting in Leeds as part of a Socialist Students day of action on the education funding crisis. 21st April 2021

What We Stand For
Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

Platform setting: =

Desktop version