Banking - Perhaps a weekend debate?.

  spuds 11:54 06 Apr 2013

Over the past day, new media reports appear to be opening old wounds regarding the 'recent' banking fiascos. A 96 page report from the British Parliamentary Commission on Banking Standards, as perhaps urged the regulators to consider bans on three former directors of HBOS from carrying out any future financial business in their lifetimes.

There also appears that further considerations are being suggested. Fred 'the shred' Goodwin and others perhaps like him, might have need to be running a little scared at the moments, or is this very unlikely and will this never happen?.

I notice that one former director of HBOS Sir James Crosby, as of yesterday already quit his new job, as an advisor to the equity company Bridgeport.

  Forum Editor 12:22 06 Apr 2013

There is currently - understandably - a considerable amount of interest in how banks are conducted, and in how senior members of staff are rewarded. When times are hard there's nothing worse than thinking that some people are getting an unnecessarily large slice of the cake, or an undeserved slice, in view of their personal performance. It's right and proper that where public money is involved there should be total accountability and transparency.

Banks are by and large businesses however, and like any other business they have to compete for customers. In the end we all make decisions based on what we want in return for letting a bank hold (and use) our funds.

The banking fuss will eventually die down, although the legacy of mistrust will smoulder on. Like any other company, if a bank wants to attract good staff it will have to compete for them, and there will never be a time when everyone is happy about the level of salaries paid to senior staff. We need a thriving banking sector if we are to have a vibrant economy - the two go hand in glove.

  spuds 13:25 06 Apr 2013


We are constantly hearing about paying high salaries to the right people, so as to run some of these organisations.

Yet it would seem that some of the people running these institutions were unaware as to how their own management styles and input was actually making a failure on these very same institutions. And investigations are now revealing this?.

I am still wondering if any future actions might be in the pipeline, against the 'top' individuals concerned. It would seem, that those in a more minor role, might have already received some punishment?.

On a personal note, Barclays have had a new 'boss', and he was stating publicly that many charges are on the horizon, as to how that company will be run in the future. apparently customer care and involvement will be paramount.I am having very serious problems with Barclays "we want to help" customer services. A simple public security notification issue, as turned into a complete nonsense, because its becoming very obvious, that management are still living in the dark ages.Now I know its early days, but you would have thought some positive changes would have trickled down from the top rungs of the ladder, as we speak?.

  Forum Editor 14:08 06 Apr 2013

"some of the people running these institutions were unaware as to how their own management styles and input was actually making a failure on these very same institutions."

Yes, and of course it happens in other industries - human failings are not restricted to the banking business. The bank problems have hit the headlines because of the public interest, and because the very high sums of money involved make spectacular reading. Other people in other market sectors have made bad management decisions, but we tend not to hear about them - it makes it look as though bankers are a particularly inept breed, but of course it's not necessarily the case.

Society is structured to think that when someone makes an error that impacts financially, physically or mentally on others that person should be held personally responsible, so we punish thieves and thugs with imprisonment or some other kind of loss of liberty. When it comes to individuals in a corporate management setting the lines are often less clearly drawn - a manager might claim that bad decisions were based on bad information from below,for instance; the waters become distinctly muddy.

The traditional response where banking is concerned has been to close ranks - banks rely heavily on public confidence, and any hint of wrongdoing at the top has been something to cover up, usually by moving the culprit sideways or out. That has all been exposed in the light of recent events, and now the industry finds itself in the full glare of the media spotlight. It doesn't like it, but it has no choice; things must change. Whether that means penalising individuals financially or not remains to be seen, and at the moment I don't really think the government quite knows what to do. On the one hand we want greater transparency in the financial sector, but on the other hand we don't want to regulate the industry so heavily that we remove its ability to compete for business in the international markets, or its ability to attract those 'right people'.

'Watch this space' seems to be the mood at the moment.

  namtas 19:21 06 Apr 2013

bankers are a particularly inept breed, but of course it's not necessarily the case.

Did I read that two of the Halifax three had no formal financial qualifications of any sort?

  oresome 19:30 06 Apr 2013

If you can head a Government without formal qualifications, a bank shouldn't present too much difficulty.

Mind you, look at the mess the country's in.

  Bing.alau 19:55 06 Apr 2013

I'm seriously thinking of putting my few remaining gold bars under the mattress. What kind of guarantee will the government give about not following in the footsteps of the banks in Cyprus. It may only be rumours but it seems some other countries are thinking of doing what the Cypriot banks have done. How long before British bank mandarins (spelling? fruit maybe?) decide it's a jolly good jape and jump on the bandwagon.

  Quickbeam 19:58 06 Apr 2013

If you can stretch to a new bed with storage drawers below the mattress, you'll get a far more comfortable night's sleep.

  john bunyan 20:45 06 Apr 2013


At over $400,000 each I wonder how many bars you have. The test should have put you in the elite category!(Test on other thread)

  oresome 21:00 06 Apr 2013

I read that Bing.alau's fears have a ring of truth.

It seems the first £85,000 is likely to be safe for depositors under rules being discussed, but those with more will suffer a 'haircut' should the bank get into difficulties, rather than the general taxpayer financing a rescue.

  Quickbeam 08:51 07 Apr 2013

Or buy another gold bar from Bingalau!

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