Voters to be given free banking shares

Voters to be given free banking shares

Author
Discussion

Isaac Hunt

Original Poster:

11,314 posts

166 months

Thursday 23rd June 2011
quotequote all
http://www.dailymail.co.uk/news/article-2007103/Ni...

Every adult in Britain could be handed free bank shares worth £1,000 when nationalised institutions are sold off.

Under the unprecedented give-away, the Government would hand over its stakes in Royal Bank of Scotland and Lloyds Banking Group to 46million voters.

The introduction of a ‘People’s Banking System’ would be the biggest distribution of shares since Margaret Thatcher sold off Britain’s nationalised industries in the 1980s.




tonker

56,746 posts

203 months

Thursday 23rd June 2011
quotequote all
Can I just set out the Wiki list of the old demutualised BSs... and where they are now .... not good.


Abbey National Converted to plc 1989 The new Bank was also known as "Abbey", acquired by Banco Santander & now rebranded to simply Santander.

Cheltenham and Gloucester was taken over by Lloyds Bank plc 1994 Now part of Lloyds TSB although C&G still have a branch network.
National & Provincial Building Society was taken over by Abbey National plc 1995 Business merged into Abbey National (now Santander), name no longer used.

Alliance & Leicester Converted to plc 1997 Acquired by Banco Santander, which also owns Abbey, in October 2008, and merged into Santander in 2010.

Bristol and West was taken over by the Bank of Ireland 1997 Became a division of Bank of Ireland but its savings balances and branch network transferred to the Britannia Building Society in 2005 (which in turn merged with Co-operative Financial Services in 2009). Bristol & West mortgages ceased trading on 10 January 2009.[16]

Halifax Converted to plc 1997 Became part of HBOS in 2001, which itself became part of Lloyds Banking Group in 2009. Trading name still in use.

Northern Rock Converted to plc 1997 Nationalised in February 2008 following near bankruptcy due to the Subprime mortgage crisis.

The Woolwich Converted to plc 1997 Now part of Barclays plc. Woolwich brand name now only used for mortgages from Barclays with the Woolwich branch network merging with that of Barclays in 2007.

Birmingham Midshires was taken over by Halifax plc 1999 Now owned by Lloyds Banking Group. The brand name is still retained, but running entirely by post and internet.

Bradford & Bingley Converted to plc 2000 Nationalisation with sale of savings book to Abbey (now Santander).

sinizter

3,348 posts

141 months

Thursday 23rd June 2011
quotequote all
Publicity and posturing.

It will never happen.

sussexjob

1,537 posts

186 months

Thursday 23rd June 2011
quotequote all
Yawn, another u-turn on the way.

V88Dicky

6,349 posts

138 months

Thursday 23rd June 2011
quotequote all
Why every voter? Is every voter a tax-payer?

Or have some voters never payed a penny in tax?


Tax-payers should be given free banking shares, not just anyone on the fking electoral role!

louiebaby

9,313 posts

146 months

Thursday 23rd June 2011
quotequote all
V88Dicky said:
Tax-payers should be given free banking shares, not just anyone on the fking electoral role!
True, but certainly more difficult to work.

If we could trust them to use the money efficiently, I'd prefer the government just took the cash and got on with it. (But now is not the right time to sell the shares anyway.)

Kermit power

24,711 posts

168 months

Thursday 23rd June 2011
quotequote all
V88Dicky said:
Why every voter? Is every voter a tax-payer?

Or have some voters never payed a penny in tax?


Tax-payers should be given free banking shares, not just anyone on the fking electoral role!
Absolutely this.

If I invested in a business in the private sector, I wouldn't expect to see the benefits equally shared with other people who hadn't invested in the first place. Why should I have to put up with this happening over the bank shares?

elster

17,415 posts

165 months

Thursday 23rd June 2011
quotequote all
Clegg can urge all he likes for a Soundbyte.

However the bank is for sale to raise funds, not to be a free giveaway so Cleggy can get a bit of popularity.

tomw2000

2,307 posts

150 months

Thursday 23rd June 2011
quotequote all
Kermit power said:
V88Dicky said:
Why every voter? Is every voter a tax-payer?

Or have some voters never payed a penny in tax?


Tax-payers should be given free banking shares, not just anyone on the fking electoral role!
Absolutely this.

If I invested in a business in the private sector, I wouldn't expect to see the benefits equally shared with other people who hadn't invested in the first place. Why should I have to put up with this happening over the bank shares?
Agree. For every £1 paid in Income Tax tax payers get 1 bank share.


Job's a good 'un. wink

Lardydah

282 posts

160 months

Thursday 23rd June 2011
quotequote all
I'm not saying it will happen (infact, it probably won't) but surely this would have a positive impact on the economy?

I imagine the majority in receipt of such shares would liquidate them and head straight down to Argos/William Hill/Wetherspoons? (as long as they don't all book holidays to Spain!)


Kermit power

24,711 posts

168 months

Thursday 23rd June 2011
quotequote all
Lardydah said:
I'm not saying it will happen (infact, it probably won't) but surely this would have a positive impact on the economy?

I imagine the majority in receipt of such shares would liquidate them and head straight down to Argos/William Hill/Wetherspoons? (as long as they don't all book holidays to Spain!)
I don't have time to get the actual figures, so will make some assumptions...

1. There are 40 million voters in the UK.
2. Of those, 30 million were taxpayers at the time of the bailout.
3. The profit when the bank shares are sold is £50Bn.

By the above, each voter would receive £1,250 in profits. The UK deficit, however, would still include that £50Bn on the books. This would fall to taxpayers, rather than voters, to the tune of £1,667 each.

Or, to put it another way, every taxpayer will get stung for £417 to give some free money to non-taxpayers who didn't invest in the bailout in the first place.

How can that possibly be good for the economy?

XJ40

4,337 posts

168 months

Thursday 23rd June 2011
quotequote all
Just pay off the deficit will you Clegg, don't mess us about with this.

HundredthIdiot

4,414 posts

239 months

Thursday 23rd June 2011
quotequote all
V88Dicky said:
Tax-payers should be given free banking shares, not just anyone on the fking electoral role!
Every time you buy something you pay tax.

Use Psychology

11,327 posts

147 months

Thursday 23rd June 2011
quotequote all
i think an appropriately sized tax rebate for all tax payers would be fairer.

Use Psychology

11,327 posts

147 months

Thursday 23rd June 2011
quotequote all
sinizter said:
Publicity and posturing.

It will never happen.
something like it probably should though.

tonker

56,746 posts

203 months

Thursday 23rd June 2011
quotequote all
HundredthIdiot said:
Every time you buy something you pay tax.
yes, and unless you are a proper taxpayer, you just recycle tax receipts, at a cost.

Kermit power

24,711 posts

168 months

Thursday 23rd June 2011
quotequote all
HundredthIdiot said:
V88Dicky said:
Tax-payers should be given free banking shares, not just anyone on the fking electoral role!
Every time you buy something you pay tax.
If the money you're spending was given to you from tax revenues in the first place, then I don't see that it really counts as you paying tax, does it? You're just deciding where to give back some of the money that proper taxpayers gave you in the first place.

Mojocvh

16,837 posts

217 months

Thursday 23rd June 2011
quotequote all
Kermit power said:
Lardydah said:
I'm not saying it will happen (infact, it probably won't) but surely this would have a positive impact on the economy?

I imagine the majority in receipt of such shares would liquidate them and head straight down to Argos/William Hill/Wetherspoons? (as long as they don't all book holidays to Spain!)
I don't have time to get the actual figures, so will make some assumptions...

1. There are 40 million voters in the UK.
2. Of those, 30 million were taxpayers at the time of the bailout.
3. The profit when the bank shares are sold is £50Bn.

By the above, each voter would receive £1,250 in profits. The UK deficit, however, would still include that £50Bn on the books. This would fall to taxpayers, rather than voters, to the tune of £1,667 each.

Or, to put it another way, every taxpayer will get stung for £417 to give some free money to non-taxpayers who didn't invest in the bailout in the first place.

How can that possibly be good for the economy?
Excellent reasoning KP clap

Otispunkmeyer

10,301 posts

110 months

Thursday 23rd June 2011
quotequote all
XJ40 said:
Just pay off the deficit will you Clegg, don't mess us about with this.
Agree

Dont give a penny back to the us the tax payers, just please put it to effective use clearing some of the deficit. It makes sense to do that. Though if it did happen, I see no reason to cash the shares in pronto. No doubt the banks will be getting stronger and stronger than ever over the next couple of years (seeing how little has changed) until the next bubble. The key will be to cash in just before the skyscraper of cards comes crashing down again.

Justayellowbadge

37,057 posts

197 months

Thursday 23rd June 2011
quotequote all
Mojocvh said:
Kermit power said:
Lardydah said:
I'm not saying it will happen (infact, it probably won't) but surely this would have a positive impact on the economy?

I imagine the majority in receipt of such shares would liquidate them and head straight down to Argos/William Hill/Wetherspoons? (as long as they don't all book holidays to Spain!)
I don't have time to get the actual figures, so will make some assumptions...

1. There are 40 million voters in the UK.
2. Of those, 30 million were taxpayers at the time of the bailout.
3. The profit when the bank shares are sold is £50Bn.

By the above, each voter would receive £1,250 in profits. The UK deficit, however, would still include that £50Bn on the books. This would fall to taxpayers, rather than voters, to the tune of £1,667 each.

Or, to put it another way, every taxpayer will get stung for £417 to give some free money to non-taxpayers who didn't invest in the bailout in the first place.

How can that possibly be good for the economy?
Excellent reasoning KP clap
Would be, save for the tiny wrinkle that what is being proposed is that voters would get the profit on the shares once they are over and above that which the government paid, not the entire share.