Madam, – In an article in the Business section of January 23rd entitled “The case for and against nationalising the banks”, Proinsiais O’Mahony quotes the former chief executive of the Royal Bank of Scotland opposing the move to nationalise as follows: “George Matheson said nationalisation would bring pressure to do things according to government practice rather than commercial banking practice”.
The reality is that so called “commercial banking practice” has been shown in Ireland, Britain and elsewhere to be seriously flawed and at times bordering on criminality. Look at the situation with Anglo Irish Bank and Seán FitzPatrick’s borrowings from that institution.
Nationalising the banking system will help guarantee the necessary oversight to protect both the depositors and the public interest – but also to ensure that capital is used by the State to promote planned and sensible economic growth, rather than the machinations of capricious bankers.
– Yours, etc,