How the Public Pay

In the face of the second nationalisation of a UK financial institution in recent times it seems that the motivation for corporate directors to be prudent with their customer’s money has all but been abandoned.

In order to avert a tremendous public outcry from the millions who would lose their savings, pensions and investments, the UK Government will, to a lesser outcry, bankroll failed Bradford and Bingley.

The tax paying public ultimately pay twice when the nationalisation option is used; first their money is injected in the organisation in staggering amounts to improve its liquidity. Secondly, if and when Bradford and Bingley manage to become profitable again and begin to look like an attractive investment, the public again will be asked to buy its shares.

The really scandal here is not the money, after all when talking in billions the figures become abstract and that most people can not comprehend. The truly dark moment in this whole scandalous affair will be the lack to accountability the directors are forced to bear.

It is unlikely that they will be shortlisted for the next position on the Bank of England monetary committee but they will none the less be charged in any criminal or civil court.

We do hear of stories occasionally of court proceedings for litter bugs, none payment of parking fines and so on, but no high profile company director gas ever (to my knowledge) spent time behind bars for negligent mismanagement of a prominent financial institution.

Corporate Governance will hardly get a mention in the news headlines as the collapse of Bradford and Bingley is sensationalised and the Labour Government are charged with re-enacting the failed economy policies of the 60s.

I will probably be the only one to say it, but thank you labour for saving the thousands of customers who needed your assistance after  someone else messed up.