This set of “new rules”, whereby the British State (acting under New Labour) will “rip up” private contracts of “greedy bankers”, will of course really help to return profitability to the Banking Sector.
In the short term, everyone in banking who has some slight potential to earn bannking profits, will simply leave. We shall be left with a “National People’s Bank” which will in its top salaries and in its public service ethos resemble the NHS, will do no deals worth doing, and will cost almost as much.
Bankers ought to have thought more carefully about the kind of people they either called upon, or accepted “help” from, to bail them out. You couldn’t make up this script – it would have to be true…“a conspiracy of greedy bankers and international capitalists who planned to rob the People” – the only word missing is “JEWISH”….
It may be decades, if ever at all, before we can return to something like a Free Market in banking in the UK. I am not optimistic.