Molly Scott Cato MEP: Banking’s central structural flaw has not been adequately addressed

SCottCAto

REACTING to the news that the Financial Conduct Authority is to shelve its investigation in to the culture, behaviour and pay of staff in banking (1), Molly Scott Cato MEP, the Green Party’s finance spokesperson, said:

“Following the banking collapse of 2008 we were told that both the structure and the culture of banking were at fault. The central structural flaw, the fact that the public was required to guarantee the casino economy, has not been adequately addressed. Instead of the essential separation of retail from commercial banking only a much weaker ring-fence is proposed but yet to be implemented.

“With the removal of FCA boss Martin Wheatley earlier this year we now see that the Financial Conduct Authority is to drop its investigation of banking culture, which was so widely blamed for the banking collapse. So neither structure nor culture is to be radically changed following the worst financial crisis in the history of capitalism.

“In an economy where money is created in the private sector based on debt, a banking licence represents an extraordinary power granted to a small number of corporations by the state. Strict regulation of their activities, particularly when their risks are guaranteed by the public, is therefore essential. An insistence on the need to reform both the structure and the culture of banking is nothing to do with ‘banker bashing’ but rather a necessary defence of the public interest against the destructive behaviour of the greedy few.”

1) http://www.bbc.co.uk/news/uk-35204010

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Green Party vision for an economy that works for all

Britain is one of the wealthiest nations in the world but this wealth isn’t being shared fairly.

We currently have an economic system that prioritises growth in company profits over the wellbeing of society. This has seen money concentrated in the hands of a wealthy few; leaving the rest of us to suffer at the hands of the Coalition’s austerity agenda.

We believe there is a positive alternative to this mix of one-sided growth and austerity: an economy that works for everyone.

We will:
– End austerity and restore the public sector, creating over one million good jobs that pay at least a living wage.
– Pay for this with a new wealth tax on the top 1%, a Robin Hood Tax on the banks and the closure of tax loopholes.
– Increase the minimum wage to reach a living wage of £10 an hour by 2020.

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