#bankofdave. @number10gov Osborne do your job and get FSA to enable bank of dave

The Channel 4 program on “Bank of Dave” is exhilirating and depressing.

The Problem is two-fold:

On one side we have Dave trying to run a bank as it should be run and on the other we have the FSA using the Law to prevent him from doing so.

Second aspect is that the large banks, which have got us in the mire are the ones that the FSA is trying to regulate.

Essentially the FSA, should be forcing banks to step back to their proper business of financing new venture’s, instead of just maximising profits.

They could do this by threatening to withdraw their licence’s.

But the FSA is controlled by politicians, who are in thrall to the bank, so the FSA, instead, has tried to find a way of allowing the banks to carry on, as they are, leveraging up their committments to a point where they can’t pay up, when their debts are called in.

The FSA has chosen (with the backing of Eurocrats) to do this by insisting that banks hold sufficient reserves to pay those debts, should they arise.

This is no problem for the big, FSA licensed, banks, because they can just create these funds out of binary digits on a computer.

Dave, an unlicensed wannabe bank has to obtain this sort of money from a rich philanthropist (thin on the ground), the same greedy big banks (who really want to create more competition) or an intelligent Chancellor of the Exchequer, who realises that his only chance of Economic Growth (if that is his actual intent, rather than public posture) is by encouraging small banks that will lend money.

I can’t see any of these coming about, in reality, and I expect Dave’s venture to fail.

It would be a nice thought if Osborne could devise a purely political device of allowing the FSA to forgo the €10,000,000 restriction by nominating a new set of rules for a new category of bank e.g. a “domestic bank”, or a “home bank”. One that was forbidden to leverage it loans.

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2 Responses to “#bankofdave. @number10gov Osborne do your job and get FSA to enable bank of dave”

  1. Angela Wells Says:

    Run for parliment Dave lets have a down to earth hard working bloke who actualy knows what we want it would be a land slide VICTORY .Get rid of these pathetic Yes men who only look after themself,s and fill there pockets with my high taxes.

    • wiganshale Says:

      I’m not Dave from @number10gov, or Dave from “Bank of Dave”, I merely tweeted this posting to number10. I agree with both your communications.
      I, too, am a pensioner, and would like to see some honest people in power.
      Until we stop people thinking in terms of “I’m a Tory” or “I’m Labour”, the situation won’t change.
      We need someone to start up a new political group, which is for Senior citizens and encompassing all political points of view.
      I’m with you on the issue of criminality.
      If my situation ever gets desperate enough, I’ll sell-up and travel the World.
      I’ll then come home, penniless, but with a high credit rating and max out a string of credit cards, living it up at the best hotels.
      What will they do to me?
      If the judge won’t send me to prison, I’ll throw knives and rocks at him, until he does.

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