Friday, 18 February 2011

The Merlin Agreement

The 'Merlin' is a bird of prey and it certainly seems that the Banks have successfully preyed on the Government. The Banks did agree to extend more credit to particularly small & medium sized businesses but there is no sanction if they fail and nothing about the simplicity and competitiveness of the loans (or lack of it) that they can impose on the borrowers. Also in the small print this is based on 'gross lending' so that banks can call in existing loans as quickly as they make new ones so it's not really an 'extension' at all. Nothing significant about bonuses – like they should only be a reward for success. It still seems that a top banker's salary is just for turning up at the office. Everything else is 'extra'. The 'Observer' [Editorial 13th Feb 2011] says: “ The goal [of Merlin] should have been a long term settlement that changes the culture of the City so that it honours its debts. The British Taxpayer saved the banking sector and in return got unemployment, tax rises, and deep cuts to public services. It was the swindle of the century”

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