This email was sent to Money Box subscribers on 1 May 2009

Dear listener,

In China 3,000 years ago the Zhou dynasty placed scholars and artists at the top of the social hierarchy. Next were artisans who made useful things followed by peasants who farmed the land and provided the food everyone needed. Fourth – and at the bottom – were the merchants who bought and sold the goods and food produced by others and made nothing but money. They were despised for it.

I get the feeling that MPs on the Treasury Select Committee would have carved bankers out of merchants into a separate class and made them fifth – if not tenth – out of five. Their report this week could hardly have been more damning.

"Bankers have made an astonishing mess of the financial system."

"Bankers... abandoned time-honoured principles of prudent lending."

"The culture within parts of British banking has increasingly been one of risk-taking leading to the meltdown that we have witnessed."

The report didn't think much of the regulators (Bank of England and Financial Services Authority) either...

"More analysis should have been instituted by the regulators."

"some regulatory reform is required"

A further report on that is promised.

And as you can see in the subject line, Money Box was selected out of more than 100 nominees as BEST RADIO PROGRAMME at the Awards for Excellence in Broadcasting voted on by the members of the Voice of the Listener and Viewer. Other winners included America – Empire of Liberty (best new radio programme) and Edward Stourton (of the Today programme) who was best broadcaster. The awards were given out by Sarah Montague – also of the Today programme – as part of the VLV's Spring Conference at the Geological Society in Piccadilly on Thursday. I was proud to pick up the award for the whole Money Box team.

*** IN THE BEST RADIO PROGRAMME THIS SATURDAY ***

Remutualisation – or undemutualisation as I am tempted to call it – was also one of the ideas floated by the Treasury Committee. In recent years the number of building societies has declined but the MPs thought that perhaps there should be more. Either by creating new ones or by converting banks such as Northern Rock back into mutual societies. The committee was much nicer about societies than banks.

"building societies have generally been shown to have operated a safer business model...[which has] left building societies better equipped to defend against the shockwaves of the current crisis." So do we need more? Could we have more? Is that a good idea? We get answers.

The Equality Bill will, we are told by Harriet Harman Minister for Women and Equality, "end the last lawful discrimination – which is against older people". That change will severely affect the financial services industry as insurance and credit is often refused on grounds of age. How – and when – will the change come?

Lots of press coverage this week about further taxes on people with incomes above £150,000 a year who put money into their pension. But the tax regime is still very friendly towards taxpayers – especially higher rate taxpayers – who contribute to a pension scheme. So we look at techniques to boost your pension at little cost to yourself. And we try to sort the myth from the reality of what the government really is planning for the over 150kers.

And in a packed 24 minutes (no longer on air despite the prize!) we will be looking at influenza A (H1N1) - from a financial point of view of course. Just what holidays and flights are covered by your travel insurance policy if you – or the tour operator – decide to cancel it for fear of swine flu?

Best wishes,

Paul

PS Don't forget the programme taster on BBC Breakfast between quarter to nine and nine o'clock. If you miss it, you can watch it on our website.


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