Regulate banks and companies effectively

Effective Regulation of banks, companies and the economy

Charge banks interest on bail-out money to compensate pension holders – Banks which only avoided bankruptcy with tax-payers’ money  are demanding an average of 13.9% interest on loans and paying their senior managers bonuses of a million pounds each. People who lost their pensions deserve money back.

Regulate banks properly – Otherwise another financial crisis is inevitable.  It should be illegal for banks taking deposits from savers to gamble their money, with taxpayers forced to bail them out if the gamble doesn’t pay off.  Competition laws should be used to split banks up and prevent mergers.

A government bank branch in every post office to provide fair interest rates and banking charges. Then people can put their money in a reliable bank and afford loans. They can also provide competition to prevent the big private banks operating informal interest rate and bank charge cartels (oligopolies).

Enforce the anti-monopoly and competition laws – Beyond a certain point bigger is not better for companies. RBS, Enron, World.com and many others show that once companies get beyond a certain size they tend to become less efficient and more likely to go bankrupt or be hiding financial irregularities (and even sometimes outright fraud).

Vast multinational firms also have no loyalty to any country and the lack of face to face meetings between top management and the majority of employees makes it easy for them to sack people and move employment abroad. The process of infinite take-overs also leads to a few big firms in every sector , causing oligopoly (unofficial price fixing cartels among a few big firms).

This can only be changed by enforcing anti-monopoly and competition laws to bar take-overs that would make firms too big to regulate or risk bankruptcy by over-extension or oligopoly – and where firms are already too big by using the same laws to break them up.

Better regulation of insurance companies – Currently insurance companies are allowed to make too many vague and all encompassing exceptions to the cover their policies provide and are not required to specifically tell people taking out these policies what the exceptions are and what they cover. This needs changed.

Better regulation of insurance companies was suggested as a policy by Anne in Carluke - sorry for forgetting your second name Anne - if you contact me i can add it in (unless you prefer to remain anonymous)