Split The Banks & Save The Taxpayer (from future bailouts)
  • Petitioning The Prime Minister of UK, Leader of the Opposition and all MPs

This petition will be delivered to:

The Prime Minister of UK, Leader of the Opposition and all MPs
The Prime Minister of UK, Leader of the Opposition and all MPs

Split The Banks & Save The Taxpayer (from future bailouts)

    1. Hardworking Taxpayer
    2. Petition by

      Hardworking Taxpayer

      Southall, United Kingdom

Dear Taxpayer,

What do you think was the root cause of the banking & financial crisis that the world has recently experienced? There could be many reasons such as busting of housing bubble in the US, over dependence of financial sector on housing sector, excessive borrowing or living beyond means, etc etc.

Don't you think one of the key reasons for collapse of banks was also the fact that INVESTMENT Banking arms of many of the private banks behaved like CASINOs where greed lead to gambling? They gambled and lost and you and me had to compensate for their losses. WHY?

Why should there be two different rules for banking and non banking businesses?

If a non banking business goes bust then it is never bailed out by the tax payers, then why do private banks have to be bailed out if they fail? Shouldn't they be allowed to close down like what happens to other businesses if they don’t perform or if they go bankrupt?

Do you think that by just ring fencing retail banks from their investment arms will prevent any future collapses & subsequent bailouts? Are you sure that the measures taken so far by the government are enough to change the culture of greed within the banking sector?

Is it not high time to separate or split or breakup the investment banking arm from the retail banking arm?

Both the arms work on a different set of cultures that cannot co-exist. The investment banking is prone to risk taking & gambling. Where as the retail banking is required to be cautious and consumer orientated. Let the banks now work for their customers and not the other way. Let the banks work for the nation and not the other way round.

Let the investment bankers be governed by a new set of rules that encourages responsible and long term decision making as against short term gains. Let them have the freedom that they want to earn as much as they wish as long as they bear their fair share of the tax burden as a corporate and as individual employees. But inspite of it, if any investment bank goes bust or collapse then it should not be bailed out again and again and again using tax payers money. Not anymore. The tax payers do not benefit when these private banks earn huge profits. Then why should these private banks be bailed out when they fail? Isn't this a fair demand from the taxpayer? 

We are aware that such a split in bank operations will not solve the problem with just one country passing a legislation to this effect. But someone has to take the lead and let UK be that leader followed by the EU and then rest of the world.

If we don't make this fundamental change now and once again brush it under the carpet, we all will have to repent it later. Let us think of our next generation and prevent them from inhereting a moutain of debt for no mistake of theirs.  

Please sign this petition if you agree and share it with more people within your network. 

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Thank you for your time.

Hardworking Taxpayer.

 

Recent signatures

    News

    1. Parliamentary Banking Commission to call for banks to be broken up, rather

      Hardworking Taxpayer
      Petition Organizer

      By Louise Armitstead, Chief Business Correspondent, The Telegraph 7:12PM GMT 16 Dec 2012

      In a report due on Friday, which is thought to be more Volcker than Vickers, the Parliamentary Commission on Banking Standards is expected to call for legislation to be drafted that would allow the banks to be broken up, rather than just ring-fenced.

      The report, which is a response to the Bank Reform Bill, is not yet finished, but members of the Commission are said to be determined to beef up the Coalition’s reforms in the wake of more fines and criticism of the sector.

      Read full article on the link below:

      http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9748949/Parliamentary-Banking-Commission-to-call-for-banks-to-be-broken-up-rather-than-just-ring-fenced.html

      Parliamentary Banking Commission to call for banks to be broken up, rather than just ring-fenced - Telegraph

      In a report due on Friday, which is thought to be more Volcker than Vickers, the Parliamentary Commission on Banking Standards is expected to call for legislation to be drafted that would allow the banks to be broken up, rather than just ring-fenced.

    2. MPs back forced separation of banks

      Hardworking Taxpayer
      Petition Organizer

      In an article dated 26th December 2012 by Kiran Stacey, Political Correspondent at Financial Times, a large majority of MPs think British banks should be forced to separate investment banking and high-street operations, research suggests.

      More than two-thirds of 93 MPs surveyed by Ipsos Mori said they agreed there should be a separation between the two forms of banking as a way of preventing risky practices in investment banks from hurting ordinary savers.

    3. MPs back forced separation of banks

      Hardworking Taxpayer
      Petition Organizer

      A large majority of MPs think British banks should be forced to separate investment banking and high-street operations, research suggests.
      The finding piles pressure on the chancellor to go further than ministers’ proposed “ringfence” around retail banking.

      More than two-thirds of 93 MPs surveyed by Ipsos Mori said they agreed there should be a separation between the two forms of banking as a way of preventing risky practices in investment banks from hurting ordinary savers.

      For full article, please visit this link below:

      http://www.ft.com/cms/s/0/57e63c4e-4f72-11e2-a744-00144feab49a.html#axzz2HKFTR48Q

    4. Reached 25 signatures
    5. Ring-fence needs electrification, says Banking Commission report

      Hardworking Taxpayer
      Petition Organizer

      21 December 2012

      "The Commission recommends that the forthcoming legislation add reserve powers to implement full separation.

      Over time, the ring-fence will be tested and challenged by the banks. Politicians, too, could succumb to lobbying from banks and others, adding to pressure to put holes in the ring-fence.

      For the ring-fence to succeed, banks need to be discouraged from gaming the rules. All history tells us they will do this unless incentivised not to.

      That’s why we recommend electrification. The legislation needs to set out a reserve power for separation; the regulator needs to know he can use it.

      The Commission will take further evidence on whether full separation of proprietary trading - something akin to a Volcker Rule - may be appropriate."

      More details on the link below:

      http://www.parliament.uk/business/committees/committees-a-z/joint-select/professional-standards-in-the-banking-industry/news/ring-fenced-report/

      Ring-fence needs electrification, says Banking Commission report - News from Parliament - UK Parliament

      Commenting on the publication of the report, the Chairman of the Parliamentary Commission on Banking Standards, Andrew Tyrie MP, said: "Parliament took the unprecedented step of creating its own inquiry into banking standards, in the wake of the first revelations about the Libor scandal. The latest revelations of collusion, corruption and market-rigging beggar belief.

    6. Sir Mervyn King: Banks have become too big

      Hardworking Taxpayer
      Petition Organizer

      10 July 2012 Last updated at 13:19
      http://www.bbc.co.uk/news/uk-18784415

      The World At One's Martha Kearney accompanied Sir Mervyn King, the Governor of the Bank of England, for one of the eight regional visits he makes each year, this time to his home city of Wolverhampton.

      It is the first time the bank has allowed a journalist to accompany him on a regional visit.

      Sir Mervyn told Martha he believes there is "a real chance" to make a change in the way the banking system works.

      "We need to separate ourselves as far as we can the normal basic banking activities that apply to households and small businesses from the investment banking activities and we need to introduce more competition into our banking sector," he said.

      The governor believes that there are not enough banks and that existing ones have "become too big and they dominate the market in a way that's not desirable".

      King: Banks have become too big

      The World At One's Martha Kearney joined Sir Mervyn King, the Governor of the Bank of England, for one of the eight regional visits he makes each year, this time to his home city of Wolverhampton.

    7. There is only one real answer - split the banks

      Hardworking Taxpayer
      Petition Organizer

      By Liam Halligan7:00AM GMT 25 Nov 201296

      Spool forward four years, and much has changed. But, maybe, not yet enough. The desirability – nay necessity – of imposing structural reform on the Western world’s banking sector, is fast becoming conventional wisdom. Meanwhile, the “banking titans”, desperate to protect the status quo that has been so profitable for them but so disastrous for taxpayers, are clinging on by their expensively manicured fingernails.

      This shouldn’t depress nor surprise. This is how powerful vested interests behave. What should definitely depress us – and even make us angry – is that rapacious banks are assisted in their defence of the indefensible by the Chancellor of the Exchequer and the leading candidates to become the next Governor of the Bank of England.

      Read the complete article on The Telegraph on link below:

      http://www.telegraph.co.uk/finance/comment/9700674/There-is-only-one-real-answer-split-the-banks.html

      There is only one real answer - split the banks - Telegraph

      In doing this, they were following and competing with their City counterparts, the UK having earlier removed its "informal Glass-Steagall" - the split between commercial banks and the old merchant banks - as part of the 1986 Big Bang. Reimposing the separation would prevent investment banks from betting with government-guaranteed deposits, so exposing them to the full force of the market.

    8. Break up the banks if ring-fence fails, says former Barclays chief

      Hardworking Taxpayer
      Petition Organizer

      Britain's lenders will have to be broken up if the ring-fence to protect their retail banking operations from “casino” investment banking proves to be “permeable”, warned Martin Taylor, one of the policy’s architects.

      Martin Taylor, who sat on the Government’s Independent Commission on Banking (ICB) that proposed ring-fencing, said “there would be a case for going further” if the firewall was “unworkable”.

      http://www.telegraph.co.uk/finance/economics/9646329/Break-up-the-banks-if-ring-fence-fails-says-policy-architect-and-former-Barclays-chief-Martin-Taylor.html

    9. Volcker says banking ringfence is flawed, splitting a better alternative

      Hardworking Taxpayer
      Petition Organizer

      One of the world's most experienced financial regulators said plans to ringfence investment banking arms of banks from high street operations would encourage bosses to seek loopholes.

      One of the world's most experienced financial regulators has warned the government that its planned legislation to protect the public from another banking crash is flawed.

      Paul Volcker, a former head of the US central bank and an adviser to president Obama, said plans to ringfence the casino investment banking arms of major banks from their high street operations would encourage bosses to seek loopholes to take bigger risks.

      In a submission to the Parliamentary Commission on Banking Standards, Volcker said a ringfence was complex and difficult to regulate compared with simply splitting investment banking operations into a separate firm.

      Read the complete article on guardian on the link below:

      http://www.guardian.co.uk/business/2012/oct/17/paul-volcker-banking-ringfence-flawed

    10. Reached 10 signatures

    Supporters

    Reasons for signing

    • Lindsay Jackson GODALMING, UNITED KINGDOM
      • 11 months ago

      I don't want others to be made redundant like me to pay for future bank failures.

      REPORT THIS COMMENT:
    • Neil Garrett LONDON, UNITED KINGDOM
      • over 1 year ago

      Ordinary people cannot keep being made to pay for the failings of the banking industry. We must restore sanity to finance.

      REPORT THIS COMMENT:
    • Anita Williamson NR IRON ACTON, UNITED KINGDOM
      • almost 2 years ago

      Easier to risk manage, easier to regulate and easier on the tax payer

      REPORT THIS COMMENT:
    • Joshua J. Lane DALLAS, TX
      • almost 2 years ago

      Though, I am from the United States of America but I feel for this cause, in that I must support it in hope that it shall spread to my Country. Bailing financial institutions with governmental funds (tax payer dollars) is by no means democratic or even remotely capitalistic.

      REPORT THIS COMMENT:
    • paul barnard GILLINGHAM, UNITED KINGDOM
      • almost 2 years ago

      criminals. pure and simple.

      REPORT THIS COMMENT:

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