When it comes to banking, many governments are now owners or part owners of their nation's banks. For retail banking (which has become a commodity) this may be a good development. Leave the higher risk financing to private equity and keep the meat and potato transactions for retail banking. It means that the people are not left drowning from this popped, speculative bubble while the bankers who created this situation are sitting on piles of bonus money.Marx would approve of state ownership of retail banking. When you look at the losses to ordinary people's lives, Marx may have a point even if his personal grooming might have been "challenged".
It has become obvious now that the “old normal” was simply unsustainable. The “new normal” must be very different. It is far from clear that the industry and government recognise this grim truth. Here's a good article along this theme:
Jacoline Loewen is a partner at Loewen & Partners, private equity for companies over $10M in revenue.
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