Simon English: Why nationalising RBS scares the City

Outlook Should Royal Bank of Scotland be properly nationalised, the remaining 18 per cent stake we don't already own bought up so that the bank can be run by the Government, in our interests?

The moaning, the fearful terror, at this idea could be heard all across the City yesterday.

It would fail. It must be stopped.

What the naysayers, who seem to include George Osborne, are most afraid of is this: it might work.

If it did turn out that a publicly owned, public-spirited bank was better than the present arrangements (privatised profit, socialised losses) that would be terrifying news for the financiers. They might even have to find meaningful work elsewhere.