SIR – I remember many years ago that the Conservative Prime Minister Ted Heath called an election on the grounds of ‘who is running the country?’ In other words, was it his government or the trade unions?

If the same question was asked today I am sure everyone would answer ‘the banks’ – given the greed and the financial problems they have caused every one of us.

They are making a fortune out of borrowing money at record low rates and lending that money at extremely high rates and still paying themselves enormous bonuses.

A new finance company claiming low rates for low income families has just quoted me an interest rate of 59.4 per cent for a £500 loan over six months. This is not bad going when the bank rate is 5.75 per cent.

My savings are earning hardly any interest at all so I am, in fact, subsidising the banks in two ways. Firstly by supporting them through ‘bail outs’ from the taxpayer and secondly by keeping my savings with them they are making a whopping profit on them.

It is a little known fact that the banking industry has recieved more government support than the total of all other industries ever including farming and the motor industry.

What is the Government doing to make the banks more competitive?

Nothing. It is just wringing its hands and hoping the problem will go away.

Terry James, Drakes Broughton