On banking, business & government. Sort of…

March 30th, 2009 § 1 comment

The Dunfermline Building Society has been bought by Nationwide, the UKs’ biggest building society.

Well, I say it’s bought Dunfermline…

But Nationwide will not be taking on the bits of Dunfermline that are seriously loss-making.

These are commercial property loans and portfolios of buy-to-let and self-cert mortgages – with a gross value of £1bn.

It’s actually bought only the good bits. And where are the bad bits going? Yup, to the treasury. Who’d have thought that would happen, eh?

Being a building society rather than a bank, there aren’t any short-termist-greedy shareholders to blame, probably just plain boring mismanagement.But once again, a private entity shifting it’s crap on to us, the taxpayer.

I realise there is not a lot that can be done about the shit currently hitting the fan, but for the future, companies/business, especially big business, need to be regulated to within an inch of their lives or kept small enough not to fuck everything else up if an entity goes belly up.

Capitalism and neoliberalism is trumpeted to be the the fairest business systems there is etc, but it doesn’t really seem fair to me that a company can take risks and reap the rewards, but then not have to take the consequences when the risks don’t go the way they expected/hoped.

Obviously, the old addage of the private sector doing a better, more effient job than the public sector is a load of old toss, and I reckon has come about because, right the way through from way before PFI to these latest bailouts, the public sector has taken the hit, and the private sector the profits.

Oh and don’t forget, If you fuck everything up big enough, you’ll be asked to advise the government on how to put it back together.

Even recently, when the government made a u-turn with the decision to put a service out to tender (I can’t remember which one) and then because of the uproar decided just to let the Post Office keep providing the service, the minister in charge on Radio 4s’ PM programme refused to answer the question of how much compensation the government had to pay the companies who have submitted tenders, citing commercial sensitivity.
What the fuck is that all about? Paying people because you don’t want them to do the job? You get a few builders round your house to quote for an extension. You suddenly decide that you’re going to move house rather than extend, you don’t pay the builders for loss of work or the time they took to quote, do you?
And commercial confidentiality? When the government aren’t actually getting anything in return? It could be argued for if the government was actually getting something for it’s (our!) money, but when it’s just a fucking payoff? Someone deserves a kick in the face for that.
Try it next time you go for a job and don’t get it. Send the company an invoice for time and travel and preparation of CV, maybe a new suit, see what the response is, because that is what these ‘Captains of Industry’ do when they applied for government contracts.

Nice work, if you can get it.

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