You report that the Treasury has dismissed reports that it will fully nationalise the Royal Bank Of Scotland ("'No plan' to fully nationalise RBS", The Herald, August 3).
This is not much of a surprise. Nationalisation would be a good idea, so it stands to reason that the Conservative-controlled Treasury would be opposed to it.
The prospect of nationalisation was raised because it might be the best way to get RBS to lend more, but the issue goes beyond that. Banks have extraordinary power in the economy, being one of its most important parts , and when they are privately owned and not accountable to the public then this undemocratic power is potentially very dangerous. The events of the past few years show just how perilous this power is.
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