It has been a weekend of talk over a possible nationalisation of Lloyds which was the solvent bank that took over HBOS only to find now the losses were a bit more than expected.
The best case I've heard for stronger regulation is the fact the the banks were all relying on a guarantee that would (eventually) be underwritten by the taxpayer. In effect we always should have had a golden share - a casting vote, since in the event of failure it would be down to us to support the banks. This had been forgotten since the guarantee had never been called upon - until now.
In some ways I do not mind the city bonuses, other than they are reward for short term gain and not for doing anything sustainable. Weapons of mass destruction were never found but we uncovered financial instruments of mass destruction, right under our noses.
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