Tim Worstall

The Prem and Richard Show

Prem Sikka insists that the Northern Rock shambles shows that financial institutions should not be run for the benefit of shareholders. No, savers should rule the roost. Elect directors and so on.

Richard of course agrees.

There must be a change of law so that all such financial institutions are run along these lines.

Typically statist of them.

For we have financial institutions run upon exactly those lines. Friendly Societies and Building Societies.

Those who wish to save and borrow from such organisations may do so. But that’s not the point, is it? Prem and Richard want to make sure that everyone does it the way they think best: not the way the individual thinks best. What freedom and liberty loving people they are.

In

3 responses

  1. kb Avatar
    kb

    He also seems to have forgotten that until 1997 that was exactly how northern rock operated.
    At which point the savers voted to take the money and float the company. (including i presume many of the same savers whining about the company management).

    Reply
  2. The Laughing Cavalier Avatar
    The Laughing Cavalier

    You can put your mony in mutuals but there’s no guarantee they will remain mutual. This old dog put his section 32 pension buy-out with a mutual, Friends Provident. Other policy holders got greedy and wanted the quick buck. Now it is about to be taken over by Resolution whose fund managers are third rate and on top of that the charges will go through the roof. Bye Bye what’s left of the Pension. First Gordon shafted it, now Resolution will finish it

    Reply
  3. john b Avatar
    john b

    pointing out that it’s simply a lie that Gordon shafted pensions, but that he actually made a sensible and revenue-neutral change that cut corporation tax to all shareholders but removed specific exemptions for pension funds, is a lost cause by now, isn’t it?
    I blame the left-wing media…

    Reply

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