Diamond has gone !!!

[Herr Tubthumper]

Tell me you are joking. Apart from the huge tax revenues the banking sector contributes, wihthut banking, business ceases to grow - they need to borrow. Now admittedly the Banks are not lending as much as they could be despite Goverment intervention, but a few guys falsifying LIBOR doesnt mean the whole sector is to blame.

Business cease to grow because they are crying out for money and they are not getting it; no loans or because the banks computer system has shut down. And it was a more than a "few guys."

 

[Herr Tubthumper]

I read today that only 25per cent of bank lending goes to the productive sector of the economy ( i.e. businesses) and most goes on property loans and lending to other financial institutions. I stand to be corrected on this, but that seems to blow a whole in the myth that banks are helping the economy out of recession.

Quite.

 

[Herr Tubthumper]

Tell me you are joking. Apart from the huge tax revenues the banking sector contributes, wihthut banking, business ceases to grow - they need to borrow. Now admittedly the Banks are not lending as much as they could be despite Goverment intervention, but a few guys falsifying LIBOR doesnt mean the whole sector is to blame.

And every man, woman and child in this country has subbed UK banking £20k of public funds.

 

[Dick Knights Mumm]

And every man, woman and child in this country has subbed UK banking £20k of public funds.

It is truly a deep trough.

 

[Tricky Dicky]

And every man, woman and child in this country has subbed UK banking £20k of public funds.

£1.2Trill, really ?

 

[Herr Tubthumper]

£1.2Trill, really ?

I'm quoting today's press.

 

[Common as Mook]

What's the alternative to the system in place now? Are people hinking that the major banks should be broken apart and sold off?

Genuinely interested as to what people's thoughts are. It needs to be remembered that 98% of people who work for these Financial Instutions do absolutely nothing wrong and work bloody hard for a living. It's the 2% of schysters that ruin it for everyone else.

 

[Rugrat]

That's not an opinion but more of a fact. The banking sector is vital to our economy, and has plenty of incentives for people to do well and good. Just the occasional morons in there that don't like their salary and do a bit more to impress and get that bonus.

Can I ask what do you do in banking? As it's a sector I want to go into after i do my BSc Economics...

No it's an opinion and many would disagree I'm sure. I do agree that the vast majority are hard working and well intended. But there's a large minority that are really in it for themselves and will go to great lengths to personally profit either in financial or career terms and really don't give a stuff on the impact on others - generally their "customers". The culture (from my somewhat limited experience, I worked mostly in cards and consumer lending) is pretty horrid, loads of internal competitiveness and backbiting politics and the FSA have tried to put in all sorts of measures to try and deal with the excesses but I'm not sure how effective they have been.

After years I decided it just wasn't for me so I managed (purely by chance) to get out and work in associated areas supplying into and interacting with if you get my gist. No doubt though that Financial Services has to remain a key pillar in our economy and I think there's plenty of opportunity for you if you want to forge a career in it. Any change though will be gradual given the deep rooted culture and I'm sure there will be more scandal as those remaining look for other "opportunities"

 

[banjo]

That songs a load of bollocks, I thought diamonds were forever.

 

[bhafc99]

I'm quoting today's press.

Good analysis of that here:
Barclays Libor scandal: how can we change banking culture? | Business | The Guardian

 

[Silverhatch]

What's the alternative to the system in place now? Are people hinking that the major banks should be broken apart and sold off?

Genuinely interested as to what people's thoughts are. It needs to be remembered that 98% of people who work for these Financial Instutions do absolutely nothing wrong and work bloody hard for a living. It's the 2% of schysters that ruin it for everyone else.

Barclays and other banks will probably be broken up now to protect their retail divisions. Investment banking will become a stand alone operation again with their business much more tightly regulated (by statute). Deregulation and the freeing up of liquidity to everyone (started by Ronnie & Maggie) led to the global boom - BUT the excesses produced in investment banking and its associated "f*** em all" culture also caused the global recession. Some, or a lot of, people need to be asset stripped or jailed to break the square mile/wall street culture.

 

[beorhthelm]

I'm quoting today's press.

would that be a left wing press that counts guarantees as if they've been spent? (from bhafc89's post, yep). the cost to the tax payer so far has been no more than the one time bailout costs of Northern Rock, RBS and Lloyds* (the latter of which occured after the government asked them to buy up HBOS). on the guarantees the treasury has actually turned a profit from the premiums they charged the banks.

* thats 65-82bn depneding on how the Northern Rock is counted, they've paid lot of the loans back. RBS was £45bn, Lloyds £21bn.

 

[The Merry Prankster]

I'm hoping that there is a special part of hell reserved for Bob Diamond and his ilk.

 

[Herr Tubthumper]

What's the alternative to the system in place now?

Quite simple really: seperate High St 'vanilla' banking from investment, and go after the specific guys that fiddled the LIBOR on fraud charges. There was a banker chap on Question Time last week who said that common fraud legislation is simply worded and will be sufficient to charge anyone found fiddling LIBOR. Prosecuting them will send out a clear message and the evidence will not be difficult to find apparently.

 

[Lyndhurst 14]

There could be a similar departure in New York as it looks as if the trading black hole of $2 billion on JP Morgan’s books could be nearer 10 to $20B. CEO Jamie Dimon must be watching events in London somewhat nervously.

JP Morgan trading loss

 

[CHAPPERS]

Maybe all these brilliant traders that we all count on to prop up our economy should give all of their bonuses back to plug these financial holes as they clearly don't f***ing deserve them.

 

[User removed 4]

Quite simple really: seperate High St 'vanilla' banking from investment, and go after the specific guys that fiddled the LIBOR on fraud charges. There was a banker chap on Question Time last week who said that common fraud legislation is simply worded and will be sufficient to charge anyone found fiddling LIBOR. Prosecuting them will send out a clear message and the evidence will not be difficult to find apparently.

He runs an inter dealer brokerage, totally different animal.

 

[The Buttery Biscuit Base]

Thank goodness! I thought HE had died...

 

[Tricky Dicky]

He runs an inter dealer brokerage, totally different animal.

I didn't see it, was that the Tullets bloke ?

 

[Big Jim]

That's strange. I always thought Diamonds are forever.