At Lloyds TSB, Daniels’ strategy is to pay back the
government preference shares that are currently propping up the business in a
year or so. Then they can really party! Shareholder dividends, swollen bonuses,
and vast salaries will be dished out while the banks ruthlessly cut back loans
and repossess homes in honour of the new age of austerity.

US Democratic Congressman Dennis Kucinich described the
$700bn bail-out of the US banks by the Bush administration as: “The largest
single act of class warfare in the modern history of this country” In Britain £50bn is being doled out in a similar scheme.
That’s approximately £833 for every man, woman and child in the country, or
£1,500 for every taxpayer. If someone was to help themselves to £1,500 of your
money and spend it wouldn’t you at least want to know how and why? Yet the
language saturating the media is full of panic and obfuscation.

Over the past couple of weeks, Britain,
many other European countries and the US have announced plans to nationalise
large chunks of the financial sector, thereby taking a good proportion of the
commanding heights of the economy into public ownership. The British government
has been forced to effectively part-nationalise three of the country’s biggest
banks, RBS, Lloyds TSB and HBOS. The plan, which includes putting treasury-appointees
on the boards of all three banks, will cost the taxpayer in the region of £37
billion. Many of the major European powers are unveiling similar plans, and
even the US, the ideological bastion of free-market capitalism, has been forced
to invest $250 billion into buying stakes in nine of its banks (though these
‘non-voting preference shares’ mean the US government will have no direct control
over the running of these banks).