Public to Share Bank Profits?
Posted by Deborah Read on Friday 24 June 2011 in Finance
Deputy Prime Minister Nick Clegg is calling for UK taxpayers, who helped to bail out banks such as RBS and Northern Rock, be made share holders in the banks to ensure that they share in the profits. When the recession hit, there was one element of society which the public fiercely blamed. Banks, with their high bonuses and high risk strategies were criticised and stigmatised by the angry public. The government offered banks bail outs at the tax payers expense. Overnight bankers became the big bad guys in the recession. Banks and bankers are still viewed with suspicion, many of the UK population angry at them for the current economic climate. However, would this change if the tax payers came to profit from the banks successes? Nick Clegg is backing such a scheme. When the bailed out banks begin to become profitable, he believes that the public who bailed them out should benefit when shares in the banks are sold. 45 million people on the electoral role would benefit if the scheme was approved. These people would be given shares in the banks for free and would keep any profits made. But would this actually work? Firstly how would it be policed, secondly, how much money would it actually bring in for the every day person? A couple of pence? Plus there's criticism from inside the government, stating that all money raised should help cut the deficit. I do genuinely like the idea that the public is paid something back for helping out banks and that they can once again have confidence in the banking system. It's a fair way to ensure that the public isn't ignored and with living costs increasing, it's fair that the banks should help out the public. If you're interested in saving money, check out VoucherSeeker.
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