This would create an environment where LA's would be more capable of funding important developments without having to resort to hikes in Council Tax, would enable the investmentin Schools (both new and old) and would allow for the continuation of some of the BSF projects.
The knock-on effect would be a reduction in unemployment, fewer reasons to raise Council Tax rates and a greater feeling of ownership and benefit for the Billions wasted on baling out the Banks, etc., in the first place.
Bad idea – government should not interfere in how banks, or any other business, operates, even Alistair Darling knew that. It is the responsibilty of government to create an environment in which business and enterprise can thrive. Labour did exactly the opposite and wrecked our financial services industry.
Also, the government is already making exorbitant profits from the bank bale outs by charging 14% interest on loans, buying shares at knock down prices to sell for profit later and charging exorbitant rates for bad debt insurance. All of which is leaching money away from bakns and therefore their customers, shareholders and employees. But will we taxpayers see any benfits? – do not hold you breath.