Daily Archives: February 18, 2011


Why not turn your RBS into a….

Classroom of EFL students / Library / Gymnasium / Swimming club / NHS Walk-in centre / Homeless day centre / Sure start parents coffee morning / University lecture hall / Storage of street rubbish / Public toilet? / Youth club / Children family centres / Elderly day care centre / Local punk gig / Comedy night / A theatre / Bingo hall / Community radio / After school clubs – music service for instance

What’s being cut in your local area?


Press release: UK Uncut plans weekend of bank protests

email: ukuncut@gmail.com
twitter: @ukuncut #ukuncut
tel: 07591992825
www.ukuncut.org
For Immediate Release

UK UNCUT PLANS WEEKEND OF BANK PROTESTS

UK Uncut, the direct action group which has targeted companies such as Vodafone, Top Shop and Boots over tax avoidance, is planning nationwide protests against Barclays bank tomorrow.

Groups and individuals across the country have so far planned an estimated 35 protests in large cities such as London, Liverpool, Manchester and Birmingham, but also in small towns such as Millom, Hastings and Lewes [1].

Each protest is expected to come under the banner of the ‘Big Society Bail-In’, which UK Uncut recently launched, saying that the plan wasn’t to shut down bank branches, but to ‘open them up’. They continued, ‘teams of UK Uncut volunteers will be entering the banks, occupying them and transforming them into something that people need, but will be cut’.

In central London, hundreds are expected to set up a live stand-up comedy show, libraries, and a mothers’ breakfast club, all inside different branches of Barclays [2].

Barclays is being targeted in the same week that it announced profits of some £6 billion, and an enormous bonus pool of £3.4bn, with a personal bonus for the CEO Bob Diamond of £9million [3].

People are also incredibly angry over Bob Diamond’s refusal to apologise for the banks role in the crisis stating that ‘the time for apology and remorse was over’ [4].

On Barclays, Ruth Griffiths, 36, said, “The entire banking industry would have collapsed if it was not for the tax payer. It was their greed and reckless gambling that caused the economic crisis. Barclays’ bonuses alone could pay for half of all cuts to local government services.”

Aisha Atkins, 32 said, “There are alternatives to the cuts, for example, making the banks pay for a crisis they created or stopping tax dodging by corporations and the rich. But the government is making a political choice in asking ordinary people pay with job losses and savaged services.”

She continued, “We are transforming the banks into schools, leisure centres and libraries and forests to show that it’s our society that’s too big to fail, not a broken banking system.”

Next Saturday, 26th February, UK Uncut will be targeting bailed-out RBS, just days after it announces its bonus pool of £900m.

ENDS

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For further comment:
UK Uncut: | ukuncut@gmail.com
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Notes to Editors

1 A full list and action map can be found at ukuncut.org.
At present the list stands at: Birmingham, Brighton,Cambridge, Canterbury, Cardiff, Carmarthen, Doncaster, Durham, Edinburgh, Gloucester, Hastings, Ipswich, Knutsford, Lewes, Liverpool, London, Brixton, London, Camden, London, Elephant and Castle, London, Lewisham, London, Picadilly, London, Soho, London, Soho Square, London, Wood Green, Loughborough, Luton, Manchester, Middlesbrough, Millom, Milton Keynes, Northampton, Oxford Plymouth, Portsmouth, Sheffield, Shrewsbury, Windsor

2 www.ukuncut.org/actions

3 www.bbc.co.uk/news/business-12455303

4 www.telegraph.co.uk/finance/newsbysector/banksandfinance/8253523/Bob-Diamond-Time-for-banker-remorse-is-over.html


Guest post: You Have A Choice

This is a guest post by Johann Hari, a columnist for the Independent newspaper. You can follow him on Twitter or read more of his articles on his website.

Two years ago, you were mugged. So was I. So was everybody we know. You remember that night. The mugger wore a pin-striped suit from Saville Row, and when he cornered you at the cash machine, he said if you didn’t hand over $1 trillion in cash guarantees now now now, he’d knife the global economy in the heart. Oh, he was polite enough: he called the mugging a “bank bailout,” and promised that, sure, tomorrow he’d change my ways, so this will never happen again, guv’nor. But since then he has been laughing in your face – and preparing for an even bigger mugging next time.

There was a time when we left the question of banking to nerds, wonks, and lobbyists. You can leave this question to them again, if you want – but the price could be your job and your home. Or you can choose the UK Uncut path this weekend, and defend yourself against the next mugging and the next crash.

To understand the renewed disaster that is waiting for us if we don’t act now, you need to recap the story of how the bankers crashed the global economy. In the Great Depression of the 1930s, everybody realized the banks had behaved in a reckless and risky way with the people’s money, and they resolved to never let it happen again. President Franklin Roosevelt called them “malefactors of great wealth”, and said “I welcome their hatred.” In response to public pressure, he introduced strict regulations. Banks had to behave conservatively. They couldn’t take the deposits of ordinary people and gamble with them on Wall Street. They had to hold substantial capital reserves. They were locked in a golden cage, and similar rules spread across the world. For sixty years, it worked well.

Then in the 1990s the banks demanded to break free of these “outdated” rules. In the US, they gave massive donations to both political parties and in return demanded an end to regulation: it was legalized bribery. In Britain, the City threatened to simply move offshore, a method of intimidation that was just as effective. So suddenly the old rules were dismantled by Bill Clinton and Tony Blair. Now the financiers were allowed to run an unregulated “shadow banking system” with almost no rules. They could gamble with your cash. They could invent complex money-shuffling instruments like derivatives that nobody really understood, not even the people selling them.

And they could run most of their businesses “off balance sheet”, turning their accounts into an elaborate fiction: Lehman Brothers claimed it had a net worth of $26bn when it actually had a hole in its balance sheet of close to $200bn.

Many people predicted that the invisible hand of the market would push the economy over a cliff. When Clinton’s deregulation bills were pushed through, the Democratic senator Byron Dorgan was almost shaking as he said: “I think we will look back in ten years’ time and say we should not have done this, but we did because we forgot the lessons of the past.”

It all happened just as he predicted. By the time the banks were bankrupt, there was no choice. If our governments didn’t bail them out, the cash machines would have run dry, and there would have been anarchy on the streets. But we should never have got to that point. It was entirely preventable: Canada never abolished it strict banking regulations, and its banks sailed through this crisis unharmed, without hoovering money from its tax-payers.

So you would expect that the urgent priority of our governments after the bailout would be to put the banks back into a cage of sober regulation. But it hasn’t happened. Two years on, the paltry new regulations have been the equivalent of a heart attack survivor deciding to cut back from smoking sixty cigarettes a day to fifty. They are gambling with derivatives again. They are gambling with our deposits again. They are using our money to pay themselves record bonuses for record failure. Most economists believe the banks need to hold capital reserves of 30 percent to protect against another crash. The new rules say they have to hold 3 percent, by 2019, if you wouldn’t mind awfully.

For the bankers, it’s a dream deal. When they make profits from gambling in the good times, they pocket them. When they make losses in the bad times, you and I pick up the tab. The people we have been told for decades to worship as “wealth creators” turned out to be the biggest wealth-sucking parasites in history. The only part of the banking sector that isn’t partying like it’s 1999 is the only one we actually need: lending to ordinary people for mortgages and small businesses. We bailed them out, but they are refusing to bail us out.

It’s clear where this story will end. The US Treasury Department’s Inspector General, Neil Barofsky, reported to the Senate in January this year: “If we do nothing to correct the fundamental problems in our financial system [we will] end up in a similar or greater crisis in two, or five, or ten years’ time. It is hard to see how any of the fundamental problems in the system have been addressed to date. [The bailouts] saved our financial system from driving off a cliff in 2008, [but] we are still driving on the same winding mountain road, but this time in a faster car.”

Why would our governments allow this? Why would they disregard our interests so blatantly? They have, in effect, been hijacked by a small elite bribing or threatening them. No American politician can run for national office without taking money from these financiers, and they then have to dance with the men who took them to the Washington ball. British politicians suck up City donations too, and are terrified of bankers threatening to relocate. Simon Johnson, the former chief economist at the IMF, says “the finance industry has effectively captured our government.”

Incredibly, Wall Street and the City are actually complaining that politicians have already done too much to reregulate. After one senior Wall Street banker protested that Barack Obama was “beating us with a stick”, the comedian John Stewart replied: “What you call a stick on Wall Street, I guess Americans call a trillion-dollar bailout of your industry. So a lot of Americans will be saying to Obama right now: ‘Hit me with that fucking stick.’” In 1929, some of the bankers who caused the crash had the decency to kill themselves. This time, they’ve demanded bigger bonuses.

It is all going to happen again, unless there is hefty public anger and pressure to bring back the banking regulations that worked so well between the 1930s and the 1990s. We need to take our government back from the corrupt clutches of the City and the bankers. They won’t do it on their own. They are too sunk in moral, intellectual and economic corruption. Like all the most important changes, it has to come from ordinary people demanding it – and refusing to be bilked.

So you have a choice. Go back to sleep, and you will be mugged again. You will spend the rest of your life working hard (if you can get a job at all) and paying taxes so your wealth can be periodically transferred to parasitical, economy-crashing bankers. Or you act in your own self-defence, and the defence of everything we value in our societies. If you want to choose the second option, join the UK Uncut protests tomorrow – and let the bankers and their lackey politicians know that the British people are not prepared to be the bankers’ gimps any longer. It’s down to you.