Odious comparisons VII - The Bank of all

This is how some financial institutions like to call themselves in their advertising. In order to reach more audiences, you know.

However, after the events of recent years, it seems that we should make it effective. Make them become the Bank of all indeed. Yeah, yeah, although it seems that I'm cursing, I'm talking about making public entities out of banks.

Let me give my reasons. It is proven that financial provide a basic service, a public service, because we all need it. The offer of this service may not be somewhat discretionary, it must be guaranteed. What is the advantage of a competitive free market when we can not afford that natural selection puts aside the worst players in the sector (i.e. government aid has to be given to banks, so they do not burst)? What efficiencies does it provide when the only possible outcome is generating profits or generating even greater profits?

If the most notorious results of this private sector are achievements such as: new product R&D (subprime mortgages, ninja, etc. valued at notional risk), cost efficiencies (stratospheric bonus for managers, shielded salaries with outrageous premiums) and contribution to society (when companies need credit at most, they refuse to give it), where's the advantage?

Oh, right, if you intervene and nationalize banks, all capital would flee the country, so soon. I was not bearing in mind that government administration inefficiencies are more scary than the irresponsibility of some private companies. I think the one and only paradigm shift we will see, when most transactions are online, is the creation of the Google Bank and Currency.