Replies from The Bank of England and Brian Hartzer, CEO UK Retail, Wealth & Ulster of RBS Retail Banking

 As the Vickers Report on reform to Britain's banking sector was published today, it seemed like a good time to share two letters that were waiting for me this weekend when I managed to get into the studio...

For context, you might want to scroll back to see the letters I sent to Mervyn King and Brian Hartzer on 18th March. This is the web page mentioned in the reply from the Bank of England - well worth a look and if you feel like offering your opinions on any of the proposals, you have till 14th April to do so.
The Vickers Report is an interim one and Paul Mason has an interesting take on it. The final report, due in September, will be considered by a cabinet committee chaired by George Osborne and any changes are unlikely to take place until 2012. Some Lib Dems say that without complete separation, history will repeat itself and Alistair Darling thinks it is a good first step but hasn't yet gone far enough; before I know what I think, I'll have to go away and read it. It's telling that having just switched on Newsnight, none of the high street banks are able/willing/prepared to attend to defend themselves and discuss the report.

I was disappointed by Brian Hartzer's letter; the suggestion that because other banks award extortionate bonuses and shareholders say it's OK, RBS will carry on doing so does not strike me as a good enough defence for greed. To see the how RBS works out the remuneration of it's Directors, don't go to the link in the letter - it doesn't work. For starters try this instead and I'll see what else I can find before I write back to him about moving my account.

Letter No 18: Blood money

There are many reasons why the Coalitions reform plans are bad for the NHS, which I touched on in late January with a crossword letter. This time I wanted to question Dave Nick and Andrew about one specific proposal which particularly bothers me, namely the repellant idea of privatisation of blood donations. To me (and many of the people with whom I've talked) it feels very wrong for a private company to profit from such an amazing act of altruism as giving blood. Do you believe you can put a price on giving blood to save lives? 

Or maybe you are starting to see the impact of pressure to 'save' money, which amounts to cuts to the NHS, which wasn't what we were promised. Remember when Dave said "I'll cut the deficit, not the NHS"? 

If you feel as I do why not add your name to any or all of the following and ask your friends and families to join in the fight to keep our NHS public :

http://action.unitetheunion.com/page/s/BloodMoney

http://www.38degrees.org.uk/page/s/Protect_our_NHS_Petition

Added 06.04.11: Apologies to JIM Dobbin MP for calling him Frank in the letter to Dave and Nick (I assume that as he has probably talked with Health Minister Anne Milton about Jim's concerns, Andrew will know whom I meant). Here's a link to the Daily Mail article on the debate at Westminster Hall that Jim Dobbin and Anne Milton took part in.

Letter No 17: Gambling on a Budget for Growth

Is Oliver Letwin this year's April fool? Labour is suggesting so and the Coalition PR team will have gone into overdrive this morning to play down what might prove to be a truthful careless slip.

As I shared with Dave and Nick this week, it was worth spending a bit more time considering the Budget and the overview given by five economists in The Guardian on 23rd March was a good place to start. With fuel prices continuing to rise, the cut to Winter Fuel Allowance will make many pensioners very anxious. According to The Independent, for many "cash is so tight that it can come down to a straight choice between heating and eating". This strikes me as shameful in a country as wealthy as ours. Good job then that there are charities out there like Elizabeth Finn Care. April is Benefits Awareness Month and today they launch a campaign to make people aware of what they are entitled to. For further information go to www.turn2us.org.uk.

P.S. By the way, I'm making progress on the bank front - it's not as onerous as you'd think to move your account...

Letter No 16: Word on the streets is...

... that quite a few of us, from ALL sectors of society, are concerned about how the Conservative led Coalition intends to cut the deficit. 

If you know of anyone who's in two minds about coming on the March for the Alternative tomorrow, remind them that most of us will get old and have an increasing need of the NHS; any one of us can get sick, lose our job, become mentally ill, homeless.  Every one of them that marches with us this weekend will play an important part in standing up for a fair and just society for all, regardless of income, ability or postcode. Stay safe and enjoy your day.

Letter No 15: Be careful what you wish for George ...

  Did you know that George and Dave were furious about the banks in 2009? FURIOUS! They were very unhappy with the way the Labour Government had dealt with the financial crisis and went as far as laying out how the Conservatives would change, regulate and and control the banks if they were given the opportunity:

                

        

 Well, now they have that opportunity and George has negotiated for us the feeble Project Merlin (which the banks read as a red light to award themselves bonuses once more, even as they make a loss), I'm feeling a bit disappointed.

It is right that international news is currently foremost and domestic issues take a back seat, though we should remain aware that the banking bonus season seems to be slipping past with the feeling of a done deal. I don't think we should accept that and so I wrote to Brian Hartzer, head of Retail Banking at NatWest, where I have held an account for many years:

 The papers reported that Mervyn King agreed the public should feel angry about bailed out banks and inflated salaries. We do. He said he was surprised that public anger wasn't greater. I think people are really angry but there's a sense that someone else should change the system. Because I believe we are all part of the system and so we have to be part of the solution, I wrote to Mervyn too:

 When banks seem unable or unwilling to control their excesses legislation is obviously the way to go, but we all have to play our part in holding the banks to account. When added together, co-ordinated changes by individuals can cause big shifts. Banks rely on customers being creatures of habit. In a busy life, it seems too much of a faff to challenge or even change your bank, even if there is more principled/ ethical alternative, right? Maybe, maybe not - I'm going to find out more and get back to you on that one and when I do, I'll be telling Dave, George and my bank about it. And I'm pleased to say I'm not alone; my very reasonable mild mannered partner, also outraged by the bonuses, has written to head office and set in motion plans to move from RBS too.

Letter No 14: Stormy weather for the Big Society

Who hasn't been amazed by Dave's tenacity in hanging on so obstinately to his idea of the Big Society? Despite warnings from many respected experts in the field, that it's not possible to have a more caring society without the necessary funding to maintain it, he seems to be of the opinion that as long as he repeats himself, we will all fall into line and start volunteering. Ah well, now we're not campaigning about forests, more time to focus on people...  

Letter No 13: How to find £120 billion each year

Posting off the last letter about the Black and White Party I was struck by the increasing disparity between rich and poor, and the damage done when politicians sidestep and fail to honour promises to the electorate. Wouldn't it be marvellous if we could change that, even a little? I'm convinced that by getting involved, we can. Letter 13 is my response to that as well as George's requests for members of the public to get in touch with ideas regarding cuts and kick-starting economic growth :

  You might want to check out the excellent PCS website. Mindful of the social as well as the financial deficit, their video newsletter sets out a credible and preferable alternative to the cuts that local councils will be forced to implement through Dave's ideological plan to shrink the public sector. I think it's important that we all keep pointing out alternatives to the Conservative led Coalition; at least then they can see we're trying to work with them. Also, if Dave's going to turn, better that he's going in the right direction. With that in mind I'll be attending the March for the Alternative in London next month and it'd be lovely see you there.