Learning lessons from Bradford & Bingley

It has, unlike its now nationalised competitor, secured private funding to shore up massive losses. And after selling part of its loan book for £2billion earlier in the year, it has enough cash to keep going until 2009.

The fact that hard-nosed American private equity investors are prepared to put money into the business suggests they have confidence in its future. So there is no need for depositors to panic.

Tough times: Bradford & Bingley sold nearly a quarter of its business to shore up its finances in the face of a sharp downturn in trading

But as shareholders in the troubled lender will attest, having seen the value of their investment fall by 85 per cent in a year, there isn't much else to be cheerful about.

The City didn't like it either, and wiped £4billion off banking shares.

True, Bradford & Bingley, the majority of whose mortgages were made to the troubled buy-to-let sector, was badly run in a risky market and is paying the price.

But its woes serve as a stark reminder, if any were needed, that the housing market crisis is far from over. 

So how would the Government respond in the event of another Northern Rock?

Do ministers have an alternative to bailing everyone out with taxpayers' money? 

Have they improved the regulatory system? Would they move more decisively than they did over Northern Rock, when several chances to deal with the problems at an earlier  -  and cheaper  -  stage were missed?

After all, private equity firms like Texas Pacific Group, which yesterday picked up nearly a quarter of Bradford & Bingley for £179 million, were at one stage keen to help out Northern Rock as well. 

Ministers need to explain how they plan to ensure that no more £100billion taxpayer bailouts will be required. That would give everyone  -  taxpayers, savers, homebuyers and even bankers  -  some much needed reassurance.

 It might even help the beleaguered housing market.

Uncaring care homes

Care homes where the staff never speak to the residents. . . Zimmer frames confiscated to keep residents from moving. . . elderly people spending all day in front of a television... dementia patients given food they cannot eat because they need help at mealtimes.

Government inspectors paint a grim picture of NHS and private care homes in which 244,000 Alzheimer's sufferers are looked after, with more than half of the sample of 100 found unfit for purpose.

Many of those with a relative in care will, sadly, recognise these descriptions. 

At the same time, another official report found that as many as 20,000 illegal immigrants may be working in care homes without having gone through proper criminal records checks.

Quite apart from identifying yet another immigration failure, the findings  -  from the Government's own inspectors, remember,  -  expose the grim underside of long-term care.

Surely a business worth £13billion a year shouldn't rely on illegal labour?

But what is most shocking is that this can't have come as a surprise to a Government that came to power promising as one of its priorities to sort out long-term care.

Last year, Gordon Brown announced  -  guess what  -  another 'consultation'. Everyone apart from this government knows what is required  -  more money.

But because Labour has squandered cash for a decade, there is none in the kitty. 

The Government's principal proposal is compulsory saving  -  essentially a brand new tax  -  to force us all to put aside money to cover the cost of our future care.

And that's why there is a consultation process  -  because ministers don't want to discuss new taxes until after an election. 

So while Labour ducks the difficult decisions, life for Britain's elderly gets shamefully worse.