EDITOR'S LETTERMerryn Somerset Webb
Avoid Britain’s big banks
In this week’s interview, I talk to Dr Pippa Malmgren, financial policy expert and former adviser to George W Bush.
She’s full of interesting thoughts on inflation and the velocity of money. But one thing we touched on that I would like to have spent more time on was the ongoing failure of our banking system to fulfil its usual purpose – lending money to individuals and companies.
In the UK, we hear endless complaints from smaller and medium-sized companies about how hard they find it to borrow money. Either they can’t get it at all, or they can’t get it at a price that makes any sense.
It is, I am told, entirely normal these days to be offered a loan, but be charged an arrangement fee of 8% of the value, regardless of how short-term the loan is.
It’s a strange situation we find ourselves in…
• Read the full editor’s letter here: Avoid Britain’s big banks.