Banks were bailed out during the financial crisis in 2008. In the US the Treasury bought billions in mortgage backed securities. In the UK half a trillion pounds was allocated to a bank rescue package. The government took a 58 percent stake in RBS and remains a significant shareholder to this day. The industry that paid fat cat salaries through dodgy loans was saved by taxpayers. So, as long as they know they are ‘too big to fail’, what’s to stop banks continuing to adopt risky practises in the race for short term financial gain? Phil Dobbie talks to Prof Steve Keen about how to moderate the behaviour of banks for the good of society.
December 13, 2018