Carswell's banking reform bill

On 15 September 2010, Douglas Carswell, the Tory MP for Clacton, told us something really interesting.

This is what he entered into Hansard on that day:

"Who owns the money in your bank account? That small question has profound implications. According to a survey by Ipsos MORI, more than 70 per cent of people in the UK believe that when they deposit money with the bank, it is theirs. BUT IT IS NOT.

MONEY DEPOSITED IN A BANK ACCOUNT IS, as established under case law going back more than 200 years, LEGALLY THE PROPERTY OF THE BANK, RATHER THAN THE ACCOUNT HOLDER." HANSARD

So, if you don't keep your cash under the matress, your money is THEIR money.

And THEY can pay themselves huge bonuses with it and create world-wide recessions and world wars with it. We knew that, didn't we? However, 'more than 70 per cent of people in the UK' do not. About time they got told, don't you think? By more than one obscure, back-bench MP, that is.

Anyway, I reckon Dougie has just saved himself from a vengeful neck-tie party of the future by introducing us to that little nugget. Especially as he is trying to bring in a bill that limits the banks ability to screw with the rest of us. To whit:

"A Bill to prohibit banks and building societies lending on the basis of demand deposits without the permission of the account holder; and for connected purposes."

Here's the most relevant bit of Carswell's proposed bill:

"MY BILL WOULD GIVE ACCOUNT HOLDERS LEGAL OWNERSHIP OF THEIR DEPOSITS."

He adds:

"My Bill is not just a consumer-protection measure; it also aims to remove A CURIOUS LEGAL EXEMPTION FOR BANKS THAT HAS PROFOUND IMPLICATIONS ON THE WHOLE ECONOMY. Precisely because they are able to treat one's deposit as an investment in a giant credit pyramid, BANKS ARE ABLE TO CONJURE UP CREDIT.

In most industries, when demand rises businesses produce more in response. THE LEGAL PRIVILEGE EXTENDED TO BANKS PREVENTS THAT BASIC MARKET MECHANISM FROM WORKING, WITH DISASTROUS CONSEQUENCES."

It will be interesting to see how those who own the politicians allow them to vote regarding Carswell's bill. Or if it even gets to that stage.

As far as I'm aware it never did get to 'that stage.'

We've heard no more about Carswell's banking reform bill since September 2010.