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Bring back a National Bank like Giro Bank?

This country used to have a national bank called Giro Bank run through the Post Office. It was started by the labour government as most people in this country didn't have a bank account as the banks weren't interested. It pushed forward the boundaries of banking for most of us offering the first free bank account.

In the early 1970s my parents (who were low income) were offered a council house or a GLA mortgage through this Giro bank. It made property ownership more realistic for people like them. Also, as a National Bank, any profit went back into the country.

I don't see why we shouldn't go back to something similar instead of spending billions on bailing out badly run private institutions. Everyone who needed a savings guarantee could put their money into this bank meaning the taxpayer wouldn't have to guarantee the funds in private banks.

I'm sure others here though will point out the error of my argument...
Those who will not reason, are bigots, those who cannot, are fools, and those who dare not, are slaves. - Lord Byron
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Comments

  • Lifeisbutadream
    Lifeisbutadream Posts: 13,102 Forumite
    ninky wrote: »

    I'm sure others here though will point out the error of my argument...

    *suscribes to thread to find out*
  • socrates
    socrates Posts: 2,889 Forumite
    How do you think that the people who bought Giro Bank would feel (A&L/Santander)?
  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    We have one. It's called Northern Rock.
  • Optimist
    Optimist Posts: 4,557 Forumite
    Part of the Furniture
    I thought we had several national banks now, Northern Rock, Bradford and Bingley to mention but two..

    The taxpayer owns them they are just run by the same people !!
    "The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts."

    Bertrand Russell. British author, mathematician, & philosopher (1872 - 1970)
  • ninky_2
    ninky_2 Posts: 5,872 Forumite
    socrates wrote: »
    How do you think that the people who bought Giro Bank would feel (A&L/Santander)?
    does this matter? i wasn't suggesting renationalising giro bank, just setting up another nationalised bank. i don't suppose the other banks would be too chirpy either as in the current climate most would want to move their money into it - yippee!
    Those who will not reason, are bigots, those who cannot, are fools, and those who dare not, are slaves. - Lord Byron
  • socrates
    socrates Posts: 2,889 Forumite
    ninky wrote: »
    does this matter? i wasn't suggesting renationalising giro bank, just setting up another nationalised bank. i don't suppose the other banks would be too chirpy either as in the current climate most would want to move their money into it - yippee!


    Well it does matter - you buy a business from Mr A. - he deals with a particular niche market - you pay your money and start trading.

    All of a sudden Mr A opens up again in the same business with lots of unfair advantages and starts to affect your income - still think it does not matter?
  • ninky_2
    ninky_2 Posts: 5,872 Forumite
    socrates wrote: »
    Well it does matter - you buy a business from Mr A. - he deals with a particular niche market - you pay your money and start trading.

    All of a sudden Mr A opens up again in the same business with lots of unfair advantages and starts to affect your income - still think it does not matter?

    You buy your business from Mr A. You know all along that Mr A has the option to start up again in business with advantages (whether they are unfair depends on your point of view) but you are willing to risk it because Mr A is currently influenced by Mrs A who is good mates with you and tells her husband starting up again is not a good idea. Plus you think you'll make loads of money.

    Mr A gets divorced and marries Mrs B. Mrs B isn't friends with you and infact doesn't like you very much as over the last few years you've overcharged her, been generally irresponsible and more than a little bit greedy. Mrs B tells her husband he was a fool to sell the business and perhaps it might be a good idea to start up again.

    Sounds like a reasonable idea to me?
    Those who will not reason, are bigots, those who cannot, are fools, and those who dare not, are slaves. - Lord Byron
  • Errata
    Errata Posts: 38,230 Forumite
    10,000 Posts Combo Breaker
    A national bank? When we've now discovered the government couldn't even run a whelk stall?
    .................:)....I'm smiling because I have no idea what's going on ...:)
  • ninky_2
    ninky_2 Posts: 5,872 Forumite
    Errata wrote: »
    A national bank? When we've now discovered the government couldn't even run a whelk stall?

    we've also discovered that the bank's whelk stall has poisoned all the customers.
    Those who will not reason, are bigots, those who cannot, are fools, and those who dare not, are slaves. - Lord Byron
  • ninky_2
    ninky_2 Posts: 5,872 Forumite
    Girobank must have been run well otherwise A&L wouldn't have been so keen to snap it up. And at least you can vote for your government - you can't vote for your bank manager.

    Fred the Shred for PM anyone?
    Those who will not reason, are bigots, those who cannot, are fools, and those who dare not, are slaves. - Lord Byron
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