More attention should be paid to the failure of the Co-op Bank. It suggests that an ‘ethical’ motivation does not guarantee that the interests of the customer will be well served.
Indeed, it may even serve those interests worse, because people who congratulate themselves on their motives are often more easily satisfied with poor results.
The Co-op affair is a big smash. The mutual model is not a panacea. I find it encouraging, morally, that hedgies, the ‘vulture funds’ of capitalism, are sorting it out.
This is an extract from Charles Moore’sSpectator’s Notes in this week’s magazine. Click here to read for free with a trial of The Spectator app for iPad and iPhone. You can also subscribe with a free trial on the Kindle Fire.Tags: banking