Thursday, 27 March 2008

Unite on FSA & Northern Rock

Not sure it says a lot?

Unite reaction to FSA report on Northern Rock

Graham Goddard, Unite Deputy General Secretary said: "The failures which resulted in the crisis in Northern Rock mean that some 2,000 jobs will be lost at the bank. Unite recognises that the FSA has accepted their responsibility in relation to their monitoring of the bank. We are calling on the FSA to ensure that their supervision practices are strengthened so there can be no repeat of the mistakes that occurred in Northern Rock.

"Unite wants to see a full investigation into the events which lead to the troubles of the Newcastle based bank. This enquiry must take a broad perspective of all those involved, including the previous management of the company. The hard working staff at Northern Rock deserve to know what went wrong and that lessons will be learnt.

"At a time of massive uncertainty for employees in the financial services sector it is vital that the Government and the FSA are able to demonstrate that those who contributed to the failure of Northern Rock are held to account. Unite cannot accept that anyone whose actions contributed to the problems in the bank are able to walk away without any questions being asked of their conduct. We will be pressing for a full investigation."


Charlie Marks said...

More interesting perhaps was Derek Simpson's recent response to the credit crunch and to Brown's Blairism

Who are the lame ducks now? says union boss

The boss of Unite, Britain’s biggest union, will today brand private market dogma as a “Lame Duck” as central banks plough in billions to prop up failing money markets.

In a drive to politicise hundreds of thousands of union activists and gear them up to change Labour party policy, Derek Simpson, joint general secretary of Unite, warns that: “At the moment we are paying through our wallets and purses but if things get worse, a full blown recession could mean paying with our jobs.

“If the government can magic tens of billions out of thin air for its financier friends, so it can also afford proper pensions, rights for agency workers and a fully-funded public sector.”

In a letter e-mailed to hundreds of thousands of union activists, Derek Simpson will remind them of the 1970s, when the then Labour government was constantly hounded by right-wingers and free marketeers for propping up struggling public sector enterprises.

Fast forward 30 years and the much-vaunted fully-flexible free market economy is a reality. But the Bank of England has ploughed £11bn into UK banks to prop up the international money markets. This was on top of a similar figure in January. Last week the BofE bailed out the banks again with another £5bn in the wake of the Bear Stearns collapse. All this is on top of the £25bn now on loan to Northern Rock.

Mr Simpson added: “The freezing of the credit markets, the collapse of Northern Rock, fears over the property market and plunging share prices are all failures of the private market system. The private market system has never performed in the way its protagonists suggest. The more it is left to its own devices the more it exacerbates booms and slumps. This is exactly why other social forces - such as governments and, yes, unions - got involved in the first place.”

Unite is mobilising its activists across the regions to get involved in Labour to change Labour party policy. In the last general election Labour lost 4 million core voters. Labour is losing its core support because of its failure to deliver on core issues. Instead the government seems to focus on supporting the lifestyles of the wealthy and privileged rather than hardworking families who want affordable housing, fully funded public services, job security and a decent pension in retirement.

Tom P said...

Thanks Charlie, very useful. Think I might use it actually!

Charlie Marks said...

Well, here's the hyperlink which i forgot to include: