I was at David Cameron’s press conference on Monday afternoon (not something I often attend any more!) and amidst all the discussion about Northern Rock, he said something that I suspect a lot of people would find surprising from a Conservative leader.
He said that under the Conservatives’ suggestion of a Bank of England-led reconstruction, shareholders would come last in the list of people to whom money would be repaid.
Obviously I think this is a good thing – creditors should come first and those who choose to invest their money in shares do so at their own risk. ‘Shares can go down as well as up’ is something we should all remember. I’m not being needlessly heartless; I am well aware that the generic term shareholders does not always mean fat cat bosses but includes ordinary people and pension-holders. People with cash deposits and equity in their homes, however, should come first.
The fact that a Conservative leader has been this forthright about the proper order of recompense bodes well for the future Conservative response to such problems as the pensions black hole.
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