On my recent travels, I met a number of educated Americans who were somewhat concerned about their government’s involvement in the banking sector. As with our situation here, a number of major banking institutions have now effectively been nationalised and as one American put it to me, would you really want these politicians running your business?
The truth of the matter is, we, the UK public, now own shares in a number of banks whether we like it or not. Irrespective of who the government appoints to run these institutions on a day to day basis, ultimately, the banks are or appear to be government controlled and run and for me, this is a real worry.
Politicians are not generally great business people and to a certain extent, the converse is also the case. Of course, the argument is put that the government didn’t have much choice but to take these massive stakes by injecting so much capita,l but it does worry me as to who is going to be running these operations and why any of us should expect them to be any more successful than their predecessors.
As they say, the jury is currently out.