Mark Littlewood appears on BBC Radio 5 Live Breakfast
Stating that it is easy to understand why people are angry, Mark Littlewood argued that the taxpayer shouldn’t have to pay to bail out banks but that Osborne’s ringfencing plans are wrong. Regarding the misguided idea that investment banking is inherently risky and retail banking is inherently safe, Mr Littlewood stated that it is “worth remembering Northern Rock” which, solely as a retail bank, offered “extremely stupid retail mortgages” before going bust. Rather than ringfencing retail banks from investment banks, the government should ensure that banks can go bust without bringing down western capitalism with them.
Mark Littlwood concluded, “Some banks are in trouble, some are not, we shouldn’t lump them all together. For those that are in trouble we should have a system that allows them to go to the wall but we shouldn’t tar every single bank with the same brush. Not all of them are illiquid, not all of them are bust. This is all a game of opinions. Make your own investment decisions as an individual, make your own investment decisions as a bank. Those that get it right will get richer, those that get it wrong should be allowed to go bust without the taxpayer leaping to their aid.”
Listen to the full programme here. Segment starts at 7.20.