Member News
15th December 2010
Hannah Terrey, head of policy and public affairs at the Charities Aid Foundation, writes in support of Hazel Blears' ten-minute rule bill encouraging banks to bring about the 'Big Society'
As well as generating huge amounts of wealth for the nation, successful commerce in the UK has historically given birth to some of philanthropy's major endeavours. Banks and the wider financial services industry have a proud history in this area – indeed, most of London's major hospitals were established by donations from the City of London. Sir Thomas Guy founded the hospital which still bears his name, thanks to the wealth he made in investments prior to the South Sea Bubble in the 1720s.
George Peabody – the Anglo-American financier and businessman – founded George Peabody and Company, which later worked with JS Morgan to create the forerunner of the modern-day banks JP Morgan and Morgan Stanley. He was also an avid philanthropist and established a charity to provide good quality housing 'for the poor'. The organisation still continues today in the form of the Peabody Trust. Indeed, many of the familiar charities we know today were established during these times and survived thanks to donations from banks and those working in the banking sector.
Although times have changed, the City of London is still the driving force behind our modern economy and, as with all areas of business, it has a role to play in helping local communities and the less fortunate in society. Indeed, there are many examples of generosity and innovative approaches to social action to be found already in the financial service sector, but these isolated instances have not yet led to the development of a full-scale culture of philanthropy and giving amongst banks and their employees.
Britain's banks, and the bankers who work in them, could go some way towards repairing their tarnished reputations and regaining the trust of the British public by supporting charities through these difficult times. This bill could provide the framework for British banks to become more involved with local communities and charities, and help the ‘Big Society' vision to come to fruition.
This would go some way towards recognising the role that their industry played in putting us in the situation we are in now, and the debt they owe society for the taxpayer-funded bailouts that have helped them to survive the economic crisis.
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