XXX Branch/Constituency Labour party regrets policies of the Thatcher government to encourage building societies to de-mutualise. This appealed to short-term greed rather than long-term stability and affordability for savers and borrowers, and represents a continued damaging legacy of the last Conservative government.

We welcome the Co-operative Party’s call, in its ‘The Feeling’s Mutual’ Campaign, for the re-mutualisation of Northern Rock and other failed banks. The banking crisis has shown that shareholder ownership leads banks to put profit first, even at the expense of customers. We believe that mutual ownership is the only way for banks to be truly accountable. This is shown by the relative success of the mutual sector during the crisis, such as the Co-operative Bank.

We are concerned that lessons are learnt from the failure of Northern Rock and other banks and that reform of the banking sector puts people before profit. We therefore support the re-mutualisation of Northern Rock which we feel will give a fair deal to the taxpayer, protect hardworking families and small businesses, create a secure and responsible institution and one which will act in the long-term interests of its customers.

We support this real chance to reform our failed banks in a co-operative and responsible manner. We call on our MP to pressure the Chancellor to consider all ownership models for Northern Rock and urge our MP to make the case for mutual ownership which, we feel, is the best way for British banks to emerge from the financial crisis.

***ENDS***

For more details on the campaign visit www.thefeelingsmutual.org.uk or visit out Facebook page.