Mervyn King: Banks putting profits before customers

Gerald · 03-05-11, 08:35 AM

Banks are trying to maximise short-term profit at the expense of customers, the Bank of England governor has said.

In a Daily Telegraph interview, Mervyn King questioned the bonus system and warned that failure to reform the sector could result in another financial crisis.

BBC correspondents say the remarks are significant because the Bank of England is taking over regulation.

http://www.bbc.co.uk/news/business-12655035

Note: 5 March 2011 Last updated at 13:16 GMT

Platapus · 03-05-11, 08:47 AM

Say it ain't so, Joe. Say it ain't so.

Oberon · 03-05-11, 08:51 AM

Jimbuna · 03-05-11, 10:05 AM

Quote:

Originally Posted by Oberon

LMAO

Schroeder · 03-05-11, 10:34 AM

Now, who would have thought....

STEED · 03-05-11, 12:25 PM

The guy is a smeg head and as no real idea what hes doing.

bookworm_020 · 03-06-11, 12:20 AM

It's standard bank procedure here in Australia. That's why they are making billion dollar profits!

And that is why I'm with a credit union! At least all profits go back into member services!

Schroeder · 03-06-11, 07:37 AM

Quote:

Originally Posted by bookworm_020

It's standard bank procedure here in Australia. That's why they are making billion dollar profits!

And when they lose money the taxpayer bails them out...if they are big enough...pretty neat business concept.

Sailor Steve · 03-06-11, 12:00 PM

More "news".

Armistead · 03-06-11, 01:39 PM

Quote:

Originally Posted by Schroeder

And when they lose money the taxpayer bails them out...if they are big enough...pretty neat business concept.

The unions do have an argument on that level, the government bails out banks, but doesn't ask for cuts in salary, multimillion bonuses and stock options.
Since bankers got our tax money, their salaries should be cut to the average norm, cut benefits, etc...

krashkart · 03-06-11, 02:22 PM

Quote:

Originally Posted by Armistead

Since bankers got our tax money, their salaries should be cut to the average norm, cut benefits, etc...

Which, unfortunately, will most likely never happen. If anything they should have lost their salaries for at least one year, with no chance of recouping that loss beyond working a second job (and I mean a minimum wage job digging ditches). But no, we will probably never see that happen because they have so many legal bindings in the way that nobody can touch them.

sharkbit · 03-06-11, 05:27 PM

Quote:

Originally Posted by Oberon

+1

Gerald · 03-06-11, 06:16 PM

Quote:

Originally Posted by Sailor Steve

More "news".

Just tell me what you want delivered

jumpy · 03-06-11, 09:27 PM

Mervyn was on the beeb the other day, saying he was 'surprised' that more of those ordinary people who had nothing whatsoever to do with the banking crisis, were not taking to the streets in anger...

Regulation of banks and bonuses is all well and good, you'll hear, but if we treat these poor financiers too harshly, they'll go and make money elsewhere, taking all of our money with them, sort of.

If the governor of the bank of england can't deal with the high-street banks avarice accordingly, then what hope does anyone else have?

As one of 'those ordinary people who had nothing whatsoever to do with the banking crisis' I find the majority of my time is spent jobhunting, to replace the financial stability I lost because of a screwy economy and employment market. Travelling to london to wave placards about is a bit beyond my current budget, looking at train tickets.

For me the irony is only now am I in debt - before all this mess I was treading water nicely, thankyou. Which brings me to another point. A while back some spokesperson/mp type had the nerve to say we should all have at least 6-12 months wages stashed away, in case of recession...

I get the theory, but in practise, I have never earned enough for that kind of strategy. Couple that to the ever growing cost of living here and it's a pipe dream for most and a conceit for the few to espouse.

Never mind... It's all utterly bonkers anyway.

Torvald Von Mansee · 03-06-11, 10:37 PM

I'm shocked!! SHOCKED!!

03-05-11, 08:35 AM	#1
Gerald SUBSIM Newsman Join Date: May 2008 Location: Close to sea Posts: 24,254 Downloads: 553 Uploads: 0	Mervyn King: Banks putting profits before customers Banks are trying to maximise short-term profit at the expense of customers, the Bank of England governor has said. In a Daily Telegraph interview, Mervyn King questioned the bonus system and warned that failure to reform the sector could result in another financial crisis. BBC correspondents say the remarks are significant because the Bank of England is taking over regulation. http://www.bbc.co.uk/news/business-12655035 Note: 5 March 2011 Last updated at 13:16 GMT __________________ Nothing in life is to be feard,it is only to be understood. Marie Curie

03-05-11, 08:47 AM	#2
Platapus Fleet Admiral Join Date: Oct 2006 Posts: 19,382 Downloads: 63 Uploads: 0	Say it ain't so, Joe. Say it ain't so. __________________ abusus non tollit usum - A right should NOT be withheld from people on the basis that some tend to abuse that right.

03-05-11, 10:34 AM	#5
Schroeder Navy Seal Join Date: Apr 2008 Location: Banana Republic of Germany Posts: 6,170 Downloads: 62 Uploads: 0	Now, who would have thought.... __________________ Putting Germ back into Germany.

03-05-11, 12:25 PM	#6
STEED Lucky Jack Join Date: Jan 2006 Location: Down Town UK Posts: 27,695 Downloads: 89 Uploads: 48	The guy is a smeg head and as no real idea what hes doing. __________________ Dr Who rest in peace 1963-2017. To borrow Davros saying...I NAME YOU CHIBNALL THE DESTROYER OF DR WHO YOU KILLED IT!

03-06-11, 12:20 AM	#7
bookworm_020 Navy Seal Join Date: Aug 2005 Location: Sinking ships off the Australian coast Posts: 5,966 Downloads: 1 Uploads: 0	It's standard bank procedure here in Australia. That's why they are making billion dollar profits! And that is why I'm with a credit union! At least all profits go back into member services! __________________ "There is always one person in any organization who knows whats going on, That person must be fired"

03-05-11, 08:51 AM	#3
Oberon Lucky Jack Join Date: Jul 2002 Posts: 25,976 Downloads: 61 Uploads: 20

03-06-11, 12:00 PM	#9
Sailor Steve Eternal Patrol Join Date: Nov 2002 Location: High in the mountains of Utah Posts: 50,369 Downloads: 745 Uploads: 249	More "news". __________________ “Never do anything you can't take back.” —Rocky Russo

03-06-11, 09:27 PM	#14
jumpy Admiral Join Date: May 2003 Location: Midlands, UK Posts: 2,139 Downloads: 22 Uploads: 0	Mervyn was on the beeb the other day, saying he was 'surprised' that more of those ordinary people who had nothing whatsoever to do with the banking crisis, were not taking to the streets in anger... Regulation of banks and bonuses is all well and good, you'll hear, but if we treat these poor financiers too harshly, they'll go and make money elsewhere, taking all of our money with them, sort of. If the governor of the bank of england can't deal with the high-street banks avarice accordingly, then what hope does anyone else have? As one of 'those ordinary people who had nothing whatsoever to do with the banking crisis' I find the majority of my time is spent jobhunting, to replace the financial stability I lost because of a screwy economy and employment market. Travelling to london to wave placards about is a bit beyond my current budget, looking at train tickets. For me the irony is only now am I in debt - before all this mess I was treading water nicely, thankyou. Which brings me to another point. A while back some spokesperson/mp type had the nerve to say we should all have at least 6-12 months wages stashed away, in case of recession... I get the theory, but in practise, I have never earned enough for that kind of strategy. Couple that to the ever growing cost of living here and it's a pipe dream for most and a conceit for the few to espouse. Never mind... It's all utterly bonkers anyway. __________________ when you’ve been so long in the desert, any water, no matter how brackish, looks like life

03-06-11, 10:37 PM	#15
Torvald Von Mansee Sea Lord Join Date: Apr 2006 Location: CA4528 Posts: 1,693 Downloads: 3 Uploads: 0	I'm shocked!! SHOCKED!! __________________ "You may not be interested in war, but war is interested in you" - Leon Trotsky