Wednesday, 8 October 2008

McDonnell - this is a weak deal

. I respectively give the floor over to John McDonnell, his comments as reported on Politics Home are totally correct in pointing out how weak the bail-out is and why it shouldn't be supported;

"I think this is a really poor deal.

We should have been more forthright. We should have been speedier and more direct, we should have nationalised to stabilise.

He’s already nationalised two of them. It is drastic, but drastic measures are needed to give reassurance.

This isn’t a partial nationalisation…we’re not getting anything in return by way of control or even of renumeration.

It’s virtually unenforcable if all you take is preference shares.The only banks that’ll be coming forward for this deal will be the most unstable, and the ones with the dodgiest debts. Therefore we will take a liabilty, but we will have no votes and no controlling interest in these companies. This is a very weak deal at the expense of the taxpayer."

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