March on the City: On Friday 10 October 2008 several hundred anti-capitalist protesters, mainly students, took to the streets of the City of London to say “We Won’t Bail Out the Bankers’.
The financial crisis had started in 2007, but reached a climax with the bankruptcy of Lehman Brothers on September 15 2008 which precipitated an international banking crisis.
Wikipedia sets out the causes of the crisis in some detail, but essentially US banks had been allowed to make more risky loans by changes in US laws which loosened regulations and allowed banks to take part in high risk operations such as proprietary trading and investment banking.
In the US one result of this was the proliferation of mortgage loans to people on low incomes who could really not afford the repayments and eventually defaulted. The problems with ‘subprime mortgages‘ particularly given to many in minority communities in the USA came to a head as a boom in US house prices in the early 2000s was followed by a sharp drop in the value of properties which were the security for the loans.
As Wikipedia comments, “governments deployed massive bail-outs of financial institutions and other palliative monetary and fiscal policies to prevent a collapse of the global financial system.” This resulted in the widespread feeling that those who had created the crisis were being rewarded for their failures.
In the UK, the New Labour government under George Brown made a massive financial intervention, paying £137 billion to the banks in loans and new capital, some of which was later recouped, but leaving a cost of £33 billion. While some support was necessary to avoid a total breakdown of the financial system, many felt that the government should have taken a firmer line and that those responsible should have had to pay for their mistakes and not to seem to have kept their highly paid jobs.
Both Northern Rock – the first UK bank to fail in July 2007 and Bradford & Bingley were taken into public ownership, and RBS/Nat West into majority public ownership. But RBS still ended up costing us £35.5 billion – and the leading bankers still ended up getting huge salaries and big bonuses. The Royal Bank of Scotland seemed to be getting off scot free.
Part of the problems we still see in financial markets came from changes worldwide in the way that trading now takes place. In the UK Margaret Thatcher had brought in the ‘Big Bang’ which abolished traditional practices and introduced electronic trading, greatly increasing volatility.
On My London Diary I give a fairly full account of the actual protest which started at Bank where some protesters tried to storm into the Royal Exchange – long just a prestige shopping centre – and the Bank of England but were easily stopped by police.
There then followed a slow march around parts of the City, with police attempting to stop them at various points and the marchers pushing their way through police lines.
As my pictures show, there was some rather forceful policing at times and some of the press also suffered with the protesters. As I write, “I got a few bruises and my glasses were damaged when police rushed in as I was taking pictures in Lombard St.” But there was none of the confrontational use of trained riot squads that have led to extreme violence at some protests policed by the Met. Policing here was by the City of London Police – along with a guest appearance by one French cop.
Eventually there was a short rally with a few speeches on the corner of Bishopsgate and London Wall after which the demonstrators dispersed. Police seemed fairly relaxed at the end of the protest and I saw no arrests.
I don’t think the protest got much if any coverage in the mass media and most accounts I read on-line were confused, with many suggesting it went to the Stock Exchange. While that might have been a logical place to protest, the marchers actually went in the opposite direction.
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