TUC calls for wholesale banking reform
Mon, 09 Nov 2009
Regulation of the international finance system must lead to a new global economy that puts people and the planet first, according to the Trades Union Congress (TUC).
Speaking at the TUC event Recovery Towards What? Finance, Justice and Sustainability, general secretary Brendan Barber said there remains an overwhelming case for reform of the global financial system.
He claimed that while the UK had been spared from the prospect of an "economic nuclear winter", the underlying causes of last year's crisis remain "essentially unresolved" and without real change, a repeat could easily be on the cards in the future.
Mr Barber commented: "With Britain still in recession, we need to build a very different financial system, one more stable, responsible and responsive to the needs of the real economy.
"Commitments were made by the G20 at the London and Pittsburgh Summits, but plans to re-regulate global finance still fall far short of what is needed to prevent another catastrophic speculative bubble in the future."
He called for proper regulation of both the banks and the shadow banking system, including a "determined crackdown" on obscene bonuses, a fairer tax system for taxpayers and workers, and reform of international financial institutions.
Mr Barber said the activities of banks, hedge funds, and debt traders must all be brought within the scope of mainstream regulation, as the government "gets to grips" with the main causes of the crash - the "close interplay" between risky behaviour and the pursuit of bonuses.
The TUC provides a voice for trade unions representing over six million workers in the UK employment market.
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