It is clear that we cannot return to “business as usual” in the provision of financial services once the effects of the current crisis work themselves out.
The social investment and environment movements have much to say on the reforms that are needed to enshrine sustainability in the international banking system. The following ideas are some of those reflected in a number of ongoing discussions and programmes such as the New Green Deal, the International Association of Investors in the Social Economy and the work of the World Future Council.
• Fundamental reform of stock markets, with permanent strictures against short-selling
• The regulation of new and existing financial instruments, not just new capital and liquidity rules
• The establishment of an exchange mechanism to ensure transparency in transactions in financial instruments - the design of products must be simple with regard both to the way they work and their contract terms. Transparency is the key both to mastering this crisis and, above all, avoiding future crises.
• The effective divorce of retail and investment banking
• An end to remuneration practices such as bonuses which reward short term thinking
• Alongside policies for the control of inflation for consumer goods, international monetary stability should also take account of inflation risks with regard to assets. One example of this is the property bubble in the USA but the same phenomenon happened here in the UK – too much easy credit pushing up house prices
• the regulation of external rating methods along with new funding arrangements for this service. The rules by which the rating agencies work should aim to remove conflicts of interest. Just like the rated institutions, the rating agencies themselves should be subject to financial supervision.
• The break-up of the big banks, not further consolidation - the size criteria laid down in national supervisory regulations with regard to the systemic impact of institutions should also be transferred to global finance. It must not be possible for financial institutions to be created whose size alone is sufficient in a crisis to cause the system to collapse. The appropriate lessons should be learnt from the example of Iceland and its banks.
• Reform of the provision of professional services to financial institutions - while there is an issue around the critical mass needed in these firms to amass the expertise needed to understand over-complicated financial systems and products, reliance on just four large accountancy firms for instance effectively reduces choice for financial service providers
• The closure of offshore financial centres - it must be clearly incumbent on the community of states to undertake real efforts to close so-called “offshore financial centres” and dismantle regulatory differences to the greatest possible extent. This will ensure that financial innovations which exclusively exploit such differences will become irrelevant.
• The extension of financial literacy - there is a need for a wide-ranging information and education campaign on financial topics. The way in which money is invested, bears interest, is used and shapes our society must be brought to public awareness to a much greater extent.
• Above all, we need banking arrangements that are the servant of people, community and environment and not the other way round - financial service providers must in future clearly focus on the needs of the real economy and thus concentrate on those services. The yardstick must be a clear reduction of financial instruments which do not serve the real economy.

Through debate, we can work to ensure that these coalesce into a coherent programme – we can’t leave this to the mainstream of banking as the danger is that the self-interest of the banks will simply reassert itself behind some vague CSR notions.
We are keen to hear the views of those with an interest in the responsible use of money.

The end of usurious banking methods, by the rejection of private central banks, and a return to precious metals coined by the Treasury would stop a great deal of this financial shenanigans.

The rich and wealthy always gambled with bits of land, slaves, paper assets etc: god, silver copper and if necessary platinum are finite, thus unlike paper money or electronic zeros and ones cannot be indefinitely copied.

Further - the reconstitution of Hire Purchase for the vast majority of people, with proprly, well manufactured goods locally produced, locally sold, would in large part crush the money masters.