Gordon Brown’s plan to “nationalise” Bradford & Bingley is simply a smaller-scale replica of the Bush administration’s bail-out of a banking sector bleeding to death from self-inflicted wounds.

The Prime Minister is batting for the bankers, intervening, with our cash, to ensure a resurgence of banking activity and private profits.

As with Northern Rock, over which government dithered for six months, transfixed by fear over the N word, Mr Brown is not opting for nationalisation to extend democratic control of the economy.

He plans to land us with £41 billion of shaky B&B mortgages, which no other bank is prepared to take off its hands, while selling the 200 high street B&B offices and savings business to other institutions.

This is in addition to the £20 billion plus interest that the government still has invested in Northern Rock.

These huge figures dwarf the costs associated with such proposals as a decent state pension, free prescriptions, abolition of student fees, provision of student grants, renationalisation of rail and utilities, which have all been rejected by new Labour on cost grounds.

As with imperialist wars, for which Mr Brown decreed that “whatever is necessary” would be found, new Labour has infinite funds to bail out the private sector and nothing but soft soap for measures to defend working-class living standards.

While working people are expected to tighten their belts, accepting below-inflation pay rises and job losses – 20,000 of which are likely in Britain’s financial sector alone – the reckless profiteers in banking boardrooms are cosseted by cash hand-outs.

The PM played to the gallery at Labour Party conference, insisting on greater corporate responsibility and a curb on excessive pay-outs, which seduced some trade unionists into believing that a change of direction was in the offing.

Don’t be fooled. The details of his B&B nationalisation plan illustrate where his priorities lie.

He and Chancellor Alistair Darling claim that their ministerial experience means that they are best fitted to see us through this latest crisis of capitalism, but they reject the view that it has arisen largely as a result of their obsessions with reliance on market forces and minimal regulation.

The B&B collapse also marks the utter failure of building society demutualisation, with every single society that opted for conversion to a bank and engaged in a voracious profits campaign, based on borrowing cheaply on world markets to fund buy-to-let and overambitious 125 per cent mortgages, going belly up to be swallowed up by bigger banks or rescued by the government.

In contrast, Nationwide, which has remained a mutual, has thrived and been in a position to help smaller societies facing difficulty.
Surely a reality check is called for by government leaders rather than a suicidal steady-as-she-sinks complacency.

The government’s neoliberal strategy is a disaster. It has failed and there has to be a change of direction or the boardroom excesses of recent years will return to haunt us, as will today’s attempts to resolve the crisis at the expense of working people.

B&B should certainly be nationalised as an entity, prime assets as well as bouncing cheques, and this, together with Northern Rock, should form a national bank to offer probity and stability in contrast to the reckless greedfest of the private sector.