Dan on Form

Hannan, a thespian to his fingertips, addresses the Oxford Union on the great myth, namely that capitalism has buggered us up these last five years. Of course, he's right. Capitalism would have put tens of thousands of bankers on the dole, the best of which could apply for jobs available in the surviving healthy banks, had capitalism been allowed to work its natural cycle. Instead, we saved the big banks, the big bankers and the huge market share they enjoy - so big, they coudn't be allowed to fail - and STILL can't be allowed to fail. We guaranteed the status quo! Idiocy.

Idle has worked for one of these leviathans since the dust settled after the disaster of 2008. I'd happily see it a quarter of its current size, run by enterprising businessmen rather than the current coalition of government and opportunists, wound up in the straitjacket of regulation and share price fixation. Banking is easy, after all; pay a reasonably competitive interest rate to depositors and lend at slightly higher rates to borrowers. Where possible, know your depositors and borrowers very well, in order to understand their needs right across the financial services spectrum, and thereby to maximise your return from them, through competent provision of product and service. Fractional reserve banking means that you will lend a multiple of what you take as deposits, so don't overdo it; a good executive board and a few wise old non-execs will keep you the right side of this.

The sooner Hannan gets to Westminster, the better.