Thursday, 27 September 2012

Lib Dems looking to split RBS

Following last month’s reports that the Government was considering buying the outstanding 17 per cent of Royal Bank of Scotland (RBS), The Liberal Democrats have now backed proposals to break RBS up into a series of local and community banks. The Sustainable Jobs and Policy paper was passed in a vote at the Lib Dem party conference in Brighton on Tuesday. Instigated earlier this year by Business Secretary Vince Cable, the policy motion was proposed by Parliamentary Private Secretary to the Deputy Prime Minister Nick Clegg, MP Duncan Hames.
Lib Dem Treasury spokeswoman Baroness Susan Kramer called on the Treasury to consider breaking up both state-owned and privately-owned banks. She said: “We have one or two albatrosses. The notion that we were going to sell off the banks for a substantial profit very quickly has long gone out of the window. Is there a more constructive way to use them? I don’t know enough to say breaking them up is the answer but I feel strongly that the Treasury should be looking very, very closely at the option.”
The policy motion also supports other initiatives, ensuring improved access to credit, relaxed capital rules for start-up businesses and a statutory responsibility to encourage banking diversity.
The only question one might ask is; are the Lib Dems being revolutionary or is this something we already knew?

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