Sir, Vince Cable is absolutely right to remind us that we, as taxpayers, are the masters of the banks we have bailed out from the brink of insolvency (“We’re the masters of the banking universe”, Opinion, July 8). And we agree that the new financial architecture cannot just be a modified form of the old high-risk structures that led to the near-collapse of the entire sector.

But the critical debate needed is not just how the Government runs publicly owned banks, but to what end. The most glaring example of why this debate is needed is the case of RBS, now 70 per cent owned by the taxpayer. Last week campaigners launched a legal case against the Treasury for refusing to consider the climate change and human rights impacts of RBS’s financing of coal, oil and gas companies and projects around the world. This case points to a wider lack of consideration by the Treasury about how our money is being used to back investments that run against the public interest — including the Government’s own policy and expenditure targets.

Until the Treasury gets its own investment house in order by ensuring that bailed-out banks stop investing in socially and environmentally damaging projects, it is hard to foresee any progress towards a more stable and sustainable financial system.

Andrew Simms

Policy Director,

New Economics Foundation

Ann Pettifor

Campaigns Director,

Operation Noah

Caroline Lucas, MEP

Colin Hines

Convener

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