Majority Must Benefit from Public Ownership of Banks, say Solidarity.
 

Solidarity calls for full and democratic public ownership of the banking and financial system, and that the public takeovers of RBOS, Northern Rock, Bradford and Bingley, and the partial nationalisation of the proposed Lloyds TSB/HBOS bank should be used to rewrite the rules of the banking system to ensure real public benefit.

Solidarity Convenor Tommy Sheridan said, "The unprecedented state takeover of these banks reflects the unprecedented nature of the financial crisis caused by naked capitalist greed and the financing of an economy based on getting people into debt and inflated house prices. A recession in the real world is now upon us and it is not good enough for Gordon Brown to simply call for a return to the commercial lending levels of 2007. Gordon’s formula for avoiding boom and bust by allowing the banks to effectively create fictitious capital and lend money they didn't really have has been shown to be a disaster. What Solidarity wants is to use public ownership of the banks to make life better for the majority of people, and to mitigate against the effects of the economic crisis."
 
Solidarity is calling for:
 
* Full and genuine public ownership and control of the banks. The creation of real and genuine people’s banks in Scotland and throughout the UK and Europe
 
* No repossessions. Publicly owned banks to renegotiate mortgage terms where necessary and to offer new 'not-for-profit' mortgages to householders and first time buyers
 
* The publicly owned banks to offer 'not for profit' lending to councils and other social housing providers to provide capital for a serious and sustained programme of building quality social housing for rent.
 
* State Owned banks to fund the public takeover at minimum cost of failing companies in the forthcoming recession. Minimise job losses
 
* A public debate on how to use the new publicly owned banking system to fund a programme of investment in renewables and infrastructure in Scotland and elsewhere
 
* An end to punitive banking charges
 
"New Labour's hubris over ending 'boom and bust' is over. 'Boom and bust' is intrinsic to the anarchic system of capitalism, and it is ordinary people that pay the price in the end for these failures" said Mr. Sheridan. "Now is the time to think boldly, and begin to reverse nearly 30 years of failed free market economics under consecutive Tory and Labour governments, that, even in the so called 'good times' leaves nearly half of the population behind."