Andrew Hebden is Assistant Editor (Business) of The Journal »
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James Mills is a web developer in the North East of England and founder of Refresh Teesside »
Phil Renton is managing director of North East IT empire Croft »
Andrew Mernin is the Digital Journalist for nebusiness »
Matthew Rippon is an IP lawyer for BHP Law »
Formerly editor of a national business lifestyle magazine, Jez Davison is a business writer for the Evening Gazette in Teesside »
Ian Brown, Northumberland farmer and businessman writes about the agricultural industry »
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Shared Interest Staff at Newcastle's fair trade firm blog on their latest international missions »
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Marion Bernard is from NorthStar Equity Investors »
Caroline Theobald is the Managing Director of Bridge Club Ltd »
John Barton of Renew, on the region's low carbon and sustainable energy agenda »
Paul Williamson is Senior Partner at Deloitte »
Stephen Hall is Tax Partner at Deloitte »THE banking crisis has been disastrous for just about everyone - apart from the banks, it seems.
Propped up by multi-million pound loans from the taxpayer, the big three of Royal Bank of Scotland, Lloyds and HSBC now own vast swathes of British industry due to deals done in the credit boom of 2004-2007.
Most of those deals were brokered to fund rapid expansion but when the bubble burst, company owners saw the value of their stake dissolve before their eyes.
In many cases, the banks have remained in control of the companies by swapping debt for equity instead of simply writing off their loans - and these deals are becoming more common.
Last week it was reported that Lloyds is mulling over a debt-for-equity swap at leisure firm Admiral Taverns, while bookmaker and bingo club Gala Coral is in negotiations that could see its lender own up to half the business.
Cash-strapped company owners are happy with such deals because, in some cases, they prolong the survival of the business.
But it cannot be good if British firms - particularly manufacturers - are sustained by the very institutions that plunged them into this mess in the first place.
Bank stakes in businesses should be a short-term solution or measure of last resort. And it's up to the private equity market to step up to the plate.
In the three months to September, deal values in the North-east rose nearly 500% over the previous quarter with more than £310m changing hands.
But that represents just 3% of deal-making activity in the UK and comes from an abnormally low base, which saw just 25 transactions completed in the region in the three months to June.
Sensibly run businesses need equity investment now to propel the country out of recession.
And a private equity specialist with business turnaround expertise is a more comfortable bedfellow than a sprawling high-street bank with limited experience of the market.
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