Friday 17 May 2013

Break up the Banks: Too Big, Too Powerful, Too Risky

A  powerful  post by Green Party member Peter Tatchell in  Huffington Post LINK today

The calls for banking reform are growing. About time. The big crash was more than five years ago. Since then we‘ve had Libor rate-fixing, bonuses for failed financiers and massive fines for malpractices by leading banks. Plus mis-sold PPI, interest rate swaps, fraud, money-laundering and tax dodging. Scandal after scandal.

What’s even more astonishing is that the gamblers and fraudsters in the City of London not only got away with their shenanigans, they were bailed out of the mess they created by the taxpayer. They won, even when they failed.

Are we mugs or masochists? Why do we put up with it? The rot has got to stop. The Bank of England and the Financial Conduct Authority are not up to the job. Many people see them as agents of corporate power. Their light-touch regulation allowed speculators to play fast and loose with the whole British economy.

Today, under the auspices of Occupy Economics - an offshoot of Occupy London - a few of us are gathering in the heart of the beast, Canary Wharf, to call time on the freeloading megabanks.

We propose three simple ideas to stabilise the financial system: put a limit on the size of banks, reduce borrowing ratios and mutualise ownership.

A few megabanks are holding society hostage, reaping huge profits on the back of the state, despite their failings. By threatening bankruptcy, the big banks extract public support worth tens of billions of pounds each year. The bail outs have siphoned off public money that could have been spent on health, education, job creation and better pensions.

Megabanks have the taxpayer over a barrel. They're drinking the bar dry and putting it on our tab.

Over the past 30 years, the big banks have grown bigger, riskier and fewer. Through incestuous "intra-financial" lending sprees, they've become wired to one another like a string of exploding fairy lights. If one bank goes down, there’s a risk that they all will.

The megabanks are a clear and ongoing threat to society.

Now Justin Welby, the new Archbishop of Canterbury, has challenged George Osborne:

“You continue to defend the idea of a small group of absolutely colossal banks... Is that lack of will to break them up not simply a recipe for a repetition of disasters?”

He's right. We need to end bank risk and welfare. Here's how.

Britain suffers under the financial stranglehold exercised a few very rich and powerful megabanks. They're unwieldy, over-complex and cannot be safely managed.

The solution: Cap bank size at $100 billion. Smaller banks are easier to manage and internal accountability can be stronger. Checks and balances tend to be more effective. With many smaller diverse banks, if one or two fail the impact on the economy will be less severe.

Megabanks borrow a lot and own little. With the government and public beholden to them because of the fear of what would happen if they were allowed to fail, bankers extort government handouts whenever they get into trouble because of their reckless policies.

George Osborne would let banks borrow 33 times what they own outright. How irresponsible is that? No one would expect to get a mortgage worth 33 times their deposit. It's far too much and too risky. So why should banks be allowed such astronomical borrowing ratios?

A sensible precaution would be to cap bank borrowing at around 14 times their net worth

Most of our banks are run for the benefit of a very small, privileged group of people – their major shareholders – who always have the option to get out while the going’s good.

This drives banks to be permanently seeking profit maximisation, often regardless of the cost to their own organisations - never mind the wider society.

Many French and German banks are run differently – as mutuals or in public ownership for the benefit of the customers and the common good. Why not ours?

Mutualisation would establish a stronger ethos of public service and accountability; removing from banks the pressure to put the optimisation of shareholder’s gain as their sole priority. This would, in turn, make possible a greater sense of civic responsibility in banking operations.  

These proposals are all about creating a culture of safer, responsible banking, with checks and balances to thwart, or at least minimise, a possible repeat of the 2007-08 meltdown.

Richard Paton from Occupy Economics puts it this way:

“Why are those who are brave, or honest, enough to challenge the megabanks either Archbishops or technocrats?

“Public revulsion at the banks won’t be assuaged by superficial measures. The underlying ‘conduct issue’ is that a few megabanks are able to extort profits by imperiling the solvency of the state.

“No-one seriously engaged with the issue believes the problem has been dealt with – except bank execs and the Chancellor.

“The government is in denial, determined to frame the problem as one of the ‘culture’ of wayward banks. Trying to address ‘culture’ alone is forlorn, like trying to catch a vapour in a butterfly net.

“The banking crash was driven by blind stock market pressure for ‘shareholder value’ in a sector dominated by predatory plcs. These megabanks still have their finger on the nuclear button known as Too Big – and too interconnected – To Fail.”

Thursday 16 May 2013

BankWatch with Bill Oddie: HSBC destroys the environment


Defend London's NHS this Saturday

DEFEND LONDON’S NHS Defend Londons nhs image (788x699)    
●Save Our Hospitals
●No to Privatisation
DEMONSTRATION
SATURDAY 18 MAY
Assemble 12 noon
Concert Hall Approach /Belvedere Rd
MARCH TO DOWNING ST
Rally in Whitehall 2pm

This demonstration has been called by an unprecedented coalition of London residents, medical staff, trade unions and health campaigners who have come together to raise the alarm regarding the biggest threats to A & E’s, maternity units and in-hospital care for a generation.

Closures planned across the capital include nine accident and emergency departments, a number of maternity units and thousands of hospital beds that campaigners believe will put lives at risk..
Hospitals and community services are also threatened with take-over by multi-national private companies. Hundreds of thousands of London residents have pledged their opposition to these privatisation plans for the NHS.

Across the capital, tens of thousands have taken to the streets to protest and demonstrate to save their local hospitals. 80,000 signed a petition against the closures in North West London. 25,000 joined the demonstration to defend Lewisham hospital. 

The local campaigns have joined up to call on the government to stop these closures. We are working together to undermine the government’s divisive tactics of playing one hospital off against another. Instead we are demanding that the government provide the funding needed for safe levels of care across the capital. 

Help save London’s Health Service

The demonstration has been called by Save our Hospital campaigns across London and London Keep Our NHS Public. It has been backed by Unite the union, a number of MPs and councillors, trade unions and the London Labour Party. Please ask your organisation to pledge their support to publicise the demonstration by adding your name. Donations towards costs will also be gratefully received (Cheques to Keep Our NHS Public c/o 32 Savernake Rd, NW3 2JP).

SUPPORT FOR  18 MAY DEMONSTRATION
Support for the demo includes:      Save Lewisham Hospital Campaign, Defend Whittington Hospital Coalition, Save our Hospitals Ealing, Save Hammersmith and Charing Cross Hospitals, Andy Slaughter MP, Steve Pound MP, Virendra Sharma MP, John Cryer MP, David Lammy MP, Frank Dobson MP, Jeremy Corbyn MP, John McDonnell MP, Dianne Abbott MP, Greater London Labour Party, London Green Party, Dr Onkar Sahota, Jennette Arnold & Murad Qureshi, Joanne McCartney  London Assembly Members, Catherine West Leader Islington Council, Rachael Saunders Councillor Tower Hamlets, Unite the Union, National Union or Journalists, RMT, London Region GMB, London Regional Council of the BMA, London Region CWU, London &SE Region PCS, Whipps cross Hospital UNISON, Westminster UNISON, Save Chase Farm, Brent Fightback, Kensington and Chelsea Residents Save Our Hospital, Ealing Trades Union Council NHS Campaign, Medical Practitioners Union UniteRoger Lloyd Pack, Ealing Southall CLP, Kingston Trades Council, Kingston and Surbiton Green Party, Kingston Keep Our NHS Public , Kingston GMB, Islington Trades Council, We Are Waltham Forest Defending Our NHS, Camden Keep Our NHS Public , Tower Hamlets BMA,  Euston Tower PCS, Islington NUT, Tower Hamlets Keep Our NHS Public, Unite the Resistance, City & Hackney Coalition to Defend the NHS, Lambeth Keep Our NHS Public, Camden UNISON,  Save Our Local Hospitals Greenwich, Bexley & Bromley, Lambeth Pensioners Action Group, PCS DEFRA Southern, Coalition of Resistance,  Defend Haringey Health Services Coalition, Islington Pensioners Forum, Redbridge Save Our NHS, National Health Action Party,  Tower Hamlets College UCU, Islington North Labour Party, RMT EPS 0520, Bromley Trades Council, Westminster North Labour Party, Camden Trades Council, Lewisham People Before Profit, Greenwich NUT, London Young Greens, London Magazine NUJ,  City & Hackney Division BMA, East London Health Unite, Homerton Hospital Unison, Occupy London, Brent Trades Council, Haringey 38 Degrees, Croydon TUC, London Health Emergency, Socialist Health Association, National Pensioners Convention, London Young Labour Exec committee, Anonymous UK, Friends of the Earth, Islington division BMA, Hands Off Hinchingbrooke, Save Barnet NHS, University of London Union,  London Region UCU, London Region Unison, London Region RCN.

Vernon says mental health is now 'core business' for the Met

Patrick Vernon, who is campaigning for Labour's Brent Central nomination has posted an article on his blog  LINK about the Independent Commission on Mental Health and Policing in which he took part.

He said:
The inquiry report makes mental health core business for Metropolitan Police Service. At times it was real hard and emotionally challenging to examine and review the 55 cases along with listening to the families’ experiences of the systematic failure leading to the death of their love ones. Respect to all the families who are still fighting for justice and peace
Some of the key findings in the report include:
  • In most cases, there were failures in systems, mis-judgments or errors by individuals, resource limitations, poor co-ordination with other services or discriminatory attitudes towards people with mental illness that led eventually to these deaths.
  • People with mental health issues complained they were treated like criminals by the police. They also felt individuals with mental health issues were handled with too much force, that the police should engage more with the families, and that police and NHS staff should have more mental health training.
  • Many families said they could not understand why there was not better liaison between agencies. Some professionals made similar points in evidence.
  • The Commission did have access to MPS files. However paper files and records were incomplete. This is clearly unacceptable for a 21st Century, customer-focused police service.
  • Care pathways must be recognised and developed and there needs to be greater operational working together, such as inter-agency working within the NHS, clinical commissioning groups and local government.
  • The Commission’s report was based on evidence direct from families over five years, MPS files as well as wide consultation with the public, service users and professionals. The Commission panel was independent and made up of experts who gave detailed consideration to the evidence.
Meanwhile Vernon, along with Muhammed Butt and former Brent South MP Lord Boateng, are involved in a project aimed at mentoring individuals who have been through the mental or criminal justice systemsL

PLIAS Resettlement is stepping up to the mark to fill a gap with the development of a mentoring programme geared towards supporting the over representation of BME individuals who have been through the criminal justice or mental health systems. PLIAS is offering a solution based mentoring and support programme for BME members of the community which aims to reduce re-offending.  This project supports alternatives to custody and diversionary activities by delivering supported care in the community.


The mentoring programme is the cornerstone of PLIAS Resettlement Court Liaison and Diversion Project. By equipping and empowering BME individuals with mental health issues to improve their lives and achieve their vision through personal mentoring relationships, PLIAS Resettlement is positioning the organisation to be a major advocate for BME individuals to guide them into making good choices for themselves

Wembley Connects Forum gets a new chair

Cllr Krupa Sheth
Cllr Mitchell Murray
Cllr Krupa Sheth, (Labour Wembley Central) will take over chairing the Wembley Connects forum from Cllr Wilhelmena Mitchell Murray in the next round.

Sheth, who lives in St Michael's Aveneue, won the Wembley Central by-election in late December 2011 at the age of 20. She will be quite a contrast to the 'tough cookie' Mitchell Murray who controversially stopped discussion of Veolia's human rights record in occupied Palestine at the last Wembley Connects on the grounds that a section of the audience found the topic 'offensive'.

Mitchell Murray has a large personality which, accompanied by a sometimes sarcastic sense of humour, was given free reign at the forum. Krupa Sheth's personality and sense of humour has been largely hidden from public view.

Cllr Sheth was involved in her own spot of controversy when a member of the public accused her of texting throughout a vital Planning Committee discussing the Willesden Green Library redevelopment. She defended herself by saying she was looking up information about the issues under discussion.

Cllr Mitchell Murray has taken over the  chair of the Children and Young  People Overview and Scrutiny Committee from Cllr Roxanne Mashari.

Wednesday 15 May 2013

New Committee Chairs and members for 2013-14 approved at Council AGM

Brent Council's Annual Meeting this evening was enlivened by some well-deserved Community Champion Awards which went to a very representative range of Brent's diverse community. Lincoln Beswick,  in an often emotional speech, nominated Bobby Thomas as Brent's first Mayor of Jamaican origin. The significance of the occasion was marked by the presence of the Jamaican High Commissioner and even more by the crowd which came forward to record the moment on cameras and mobile phones.

Otherwise the evening was marked by a considerable amount of mutual political grooming on the last occasion in which the meeting will take place at Brent (formerly Wembley) Town Hall. The move to the Civic Centre will take place in mid-June.

The Executive and Committee positions were confirmed and the members of each of the main  committees is recorded below. The political balance is shown in brackets (Labour/Lib Dem/Conservative). In addition there are first and second alternates. Full details will be on the Council's website.

GENERAL PURPOSE (6/3/1)
Butt (Chair), Hirani, Mashari, J Moher, R Moher (VC), Pavey, Brown, Hopkins, Lorber, Kansagra

SENIOR STAFF APPOINTMENTS SUB-COMMITTEE (3/1/1) Important in light of senior officer restructuring)
Butt (Chair), Denselow, R Moher (VC), Lorber, Kansagra

PLANNING (7/3/1)
Aden, John (VC), Kabir, Kataria, Powney, Ketan Sheth (Chair), Singh, Cummins, Hashmi, CJ Patel, Baker

ONE COUNCIL OVERVIEW AND SCRUTINY COMMITTEE (5/2/1)
Chohan, Harrison, Long, Mitchell Murray, Powney, Ashraf (Chair), Lorber, Colwill (VC)

BUDGET AND FINANCE OVERVIEW AND SCRUTINY COMMITTEE (5/2/1)
S Choudhary, Kataria (VC), RS Patel, Ketan Sheth, Van Kalwala, Brown, Hopkins (Chair), HB Patel

CALL-IN OVERVIEW AND SCRUTINY COMMITTEE (5/2/1)
Daly, Jones (VC), Kabir, RS Patel, Krupa Sheth, Ashraf (Chair), Lorber, HB Patel

CHILDREN AND YOUNG PEOPLE OVERVIEW AND SCRUTINY (5/2/1)
Aden, Al-Ebadi, Arnold, Gladbaum, Mitchell-Murray (Chair), Matthews (VC), CJ Patel, Kansagara
(There are also co-optees and observers on this comittee)

HEALTH PARTNERSHIPS OVERVIEW AND SCRUTINY COMMITTEE (5/2/1)
Daly (Chair), Harrison, Hector, Hossain, Ketan Sheth, Hunter (Vice Chair), Leaman, Colwill

BRENT CONNECTS FORUMS - Chairs
HARLESDEN: Hector
KILBURN AND KENSAL: Oladapo
KINGSBURY  AND KENTON: RS Patel
WEMBLEY: Krupa Sheth
WILLESDEN: Jones

Reprise: The Battles of Kensal Rise and Preston Libraries

I thought that after today's news it was worth playing these videos again. Respect to the Kensal Rise and Preston campaigners and those from Barham and other libraries.


Butt and Pavey refuse to back Copland teachers' action against forced academy status

Well that didn't take long! Brent Council released this statement a few minutes ago:
Cllr Muhammed Butt, leader of Brent Council has today urged teachers at Copland school not to go on strike, after they announced their intention to take action at a Governors meeting last night. Copland was placed in special measures by the Department of education earlier this month after it received a ‘failing’ Ofsted report. Under DfE rules, the School most now become an Academy.

Cllr Muhammed Butt, Leader of Brent Council said:
“Nothing is more important than our children’s education. I am a trade unionist myself and hugely supportive of workers’ rights but our children’s education is at risk at Copland and strike action can only make things worse. I strongly urge all teachers at Copland to reconsider and to work together with me, children's parents and the Government to deliver the best possible outcome for the school.”

 Cllr Michael Pavey, Lead Member for Children and Families said:
“I am opposed to forcing Schools which are not failing to become academies, but this is simply not the situation at Copland. Our children deserve a better education than they are currently receiving there and no governance arrangement is more important than that. I urge teachers to stay at work and be part of the solution.”