80,000 SAVERS LEAVE BANKS EVERY MONTH
Ed Miliband wants reform
Monday July 9,2012
By Alison Little
ANGER at high street banks has triggered a surge in applications to open accounts in building societies, campaigners said yesterday.
Move Your Money UK estimated 80,000 savers a month had left the banking giants since January.
Spokesman Louis Brooke said: “There’s a decline in trust. People no longer see the banks as legitimate institutions.”
The Government has already backed action to help savers switch accounts, but yesterday shadow chancellor Ed Balls said: “It’s very difficult to change bank accounts.
“People do it on average every 26 years. You’re more likely to get divorced than to change your bank account.”
Labour leader Ed Miliband is proposing a bankers’ code of conduct, with wrongdoers struck off for life. He also wants major banks to sell off 1,000 branches to allow two new “challenger” banks to compete.
The row over alleged bank rate rigging will take a new twist today when Bank of England deputy governor Paul Tucker speaks to the Commons Treasury Committee.
He is said to have warned in 2008 that Whitehall was concerned about Barclays Bank’s high rates, prompting claims that Labour put pressure on the bank to post lower rates.