Not lending? Time to nationalise the banks!

The chair of the Treasury Select Committee has been waving a big stick at the bankers in the form of naming and shaming:

Demand for full-scale nationalisation of more banks could also grow if loans were not made, John McFall said.

The Chair of the Left Economics Advisory Panel, John McDonnell MP says this demand should be heeded:

“Despite all Government attempts to stimulate the economy, all the evidence points to failure. The billions in bailouts have done little to increase lending, and we are witnessing a startling rise in home repossessions.

“The Government now needs to be more forthright and move towards the full nationalisation of the banking sector to be run in the interests of the British people.

“We can’t afford any more dithering by the Bank of England. We need an immediate and substantial cut in interest rates. It is now time for the Government to take back control from the dithering Bank of England.”

On that startling rise in repossessions, housing charity Shelter reports:

New figures released by the Council of Mortgage Lenders (CML) show that repossessions have risen 12% to 11,300 in the third quarter of the year from July to September.

This means that there have already been more repossessions in 2008 than 2007, and CML director Michael Coogan is still predicting 45,000 reposessions by the end of the year as the economic situation worsens.

The figures also show that the number of borrowers in mortgage arrears was up 8% on the previous quarter to 168,000.

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