We need a universal banking obligation. It would mean that everyone, by right, would have access to the full range of banking services – whereas at the moment, one of the great fights with the banks has been the way they’ve chosen customers to maximise profitability and created finance deserts for poor communities. On the ground, it propels people into the hands of vulture lenders with baseball bats.
We also need a green investment bank. The big question is how it should be funded. Some suggest creaming off the proceeds of the European Emissions Trading Scheme, or you could have a windfall tax on the fossil fuel companies, or carbon bonds – there are lots of ideas. And here’s one that could be a poetic test case: the Royal Bank of Scotland used to advertise itself as the Oil and Gas Bank. Given that RBS is now in the hands of the taxpayer, why not turn it into the Royal Bank of Sustainability?
Finally, Labour should aim at launching a competition inquiry into the big banks, and breaking them up. The great paradox of what happened after the crash was that banks that were already too big to fail got even bigger. Major action is needed to stop banks holding the country to ransom.
From today’s Guardian. Original article includes contributions from Sunder Katwala, Pam Giddy, Will Straw and Joss Garman.