Where do we go from here?

You have probably heard the news about the banks over the last few days. HSBC and Barclays have both revealed that they have made profits of approximately 3 billion pounds each in the first six months of the year. In the last few hours it has also been announced that Northern Rock, which is about 70% owned by us, has made a loss of almost 3/4 billion pounds in the same six month period.

Although HSBC and Barclays have not received direct injected cash from the taxpayer, they have been happy to receive help from the substantial funds we have given (unwillingly!) to prop up the banks in general with the creation of a large reserve fund. No doubt this has helped to increase confidence in the banks in general, who in turn are proving to be very tardy and reluctant to give any loans to those who now need them to stay in business and to maintain and provide emplyment in this once great country of ours.

In view of the above summary, I suggest that the banks who are doing quite nicely, e.g. HSBC and Barclays, rather than paying gross bonuses to their employees who are undeserving of them at this time, should give the money instead to the likes of Northern Rock and any other banks that have made a loss to get the system working again. As so many have now lost their jobs and businesses this year because of the bankers' greed then surely it should be time for the banks to pull their weight, to start lending fairly and properly and to bail out the failing banks, after all, we are no longer in the position to do this!

What is the difference between a bankers' bonus and a no claims bonus? Answer: a bankers' bonus pays out even if there is a crash!

Sadly, the above joke seems to be only too true. Although some bank chiefs have offered apologies over the last few days for mistakes they have made over last few years, we have yet to see if there is some action to follow. It is not right that they should be rewarded for failure, especially when we the taxpayers have bailed them out to avoid bancruptcy and many small businesses and individuals still can't get loans to save their businesses and homes. The bankers should be foregoing their bonuses at this time of economic crisis and be thankful that they still have jobs when many others are losing theirs and they are encouraging the process of further unemployment. Let's hope that they see reason and reinvest the money saved into creating new jobs and offering loans and help to those who really need it at this critical time.