John The Pessimist Posted July 17, 2014 Share Posted July 17, 2014 If half of this comes to pass, we'll not get a brass razoo for our stake in RBS & Lloyds...... http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10974794/UK-banks-face-break-up-as-competition-inquiry-looms.html Quote Link to comment Share on other sites More sharing options...
John The Pessimist Posted July 17, 2014 Author Share Posted July 17, 2014 Forget the brass razoo. If we need the money we can print it. More important is the structure of the banking market. Apart from splitting the banks up (e.g. Lloyds into Lloyds, Halifax, TSB, Bank of Scotland, Cheltenham & Gloucester etc....i.e. undoing the previous mergers) I think investment banking should be split out (the 'casino banking' of proprietary trading). But mostly I think Business Banking should be split out into regional business banks. The temptation just to undertake easy mortgage lending is simply too great for the banks and business lending continues to slump 6 years after the crash. If you limit a bank to business banking it will develop the skills (re-learn them) to ensure it survives by lending into that sector. Let's not underestimate that we 're all on the hook for a combined £120bn+ for bailing out the banks. That's a whole wedge of cash, printed or not. It impacts everyone in the form of inflation, taxes etc. Breaking up the banks may generate competition. However, competition may encourage the bankers to go for 'easy' business like mortgages, and we're back blowing HPI bubbles. Irrespective of whether the banks are broken up, we need accountability. You sell sh1t loans, your bank goes bust type accountability. This, and not increased regulation will sort the sheep from the goats. Quote Link to comment Share on other sites More sharing options...
wonderpup Posted July 17, 2014 Share Posted July 17, 2014 A woman in the London riots who was convicted of stealing a pair of trainers got ten months in jail- everyone involved in the riot who they could find got a custodial sentence- the bankers stole the nations future and got large bonus's and pensions. Forget breaking them up, lets start locking them up. As long as control fraud is allowed to prosper no amount of tinkering with the system will make any difference- they will just find new ways to game the system. Quote Link to comment Share on other sites More sharing options...
DiggerUK Posted July 17, 2014 Share Posted July 17, 2014 A small number of large banks, or a large number of small banks. The difference being ????? ..._ Quote Link to comment Share on other sites More sharing options...
John The Pessimist Posted July 17, 2014 Author Share Posted July 17, 2014 A woman in the London riots who was convicted of stealing a pair of trainers got ten months in jail- everyone involved in the riot who they could find got a custodial sentence- the bankers stole the nations future and got large bonus's and pensions. Forget breaking them up, lets start locking them up. As long as control fraud is allowed to prosper no amount of tinkering with the system will make any difference- they will just find new ways to game the system. Amen. I'm all in favour of some bankers 'playing mamas & papas' with a 250lb inmate called 'Bubba'. However, as soon as you start holding people criminally responsible for their actions, where will it end? Was Gordon's misselling of the nation's gold criminally negligent? Should Blair/Cameron have sent soldiers to XYZ countries? The establishment don't like it when the rules designed for the plebs get applied to them...... That's why jail will never happen. Quote Link to comment Share on other sites More sharing options...
John The Pessimist Posted July 18, 2014 Author Share Posted July 18, 2014 Who will conduct the inquiry? Will it be effective or just pay lip service? http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10975291/UK-banks-face-full-blown-competition-inquiry.html Quote Link to comment Share on other sites More sharing options...
rentbug Posted July 18, 2014 Share Posted July 18, 2014 A woman in the London riots who was convicted of stealing a pair of trainers got ten months in jail- everyone involved in the riot who they could find got a custodial sentence- the bankers stole the nations future and got large bonus's and pensions. Forget breaking them up, lets start locking them up. As long as control fraud is allowed to prosper no amount of tinkering with the system will make any difference- they will just find new ways to game the system. +1 The taxpayers will never get back the billions. Quote Link to comment Share on other sites More sharing options...
R K Posted July 18, 2014 Share Posted July 18, 2014 'Competition' = competitive downward pressure on lending rates and simpler to wind up when they fail. Simples. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted July 18, 2014 Share Posted July 18, 2014 It's just a pity the govt doesn't own have stakes in RBS/NatWest/Lloyds/Halfix/Bank of Scotland/TSB it's almost as if the answer is staring us in the face. Quote Link to comment Share on other sites More sharing options...
byron78 Posted July 18, 2014 Share Posted July 18, 2014 (edited) Breaking up the banks may generate competition. However, competition may encourage the bankers to go for 'easy' business like mortgages, and we're back blowing HPI bubbles. Irrespective of whether the banks are broken up, we need accountability. You sell sh1t loans, your bank goes bust type accountability. This, and not increased regulation will sort the sheep from the goats.That would work. Problem is it will never happen.All sorts of reasons, not least that the "too big to fail" precedent has been made, and the biggest financial institutions have an awfully strong hold over "democracy". Remember when the unions held the country to ransom when manufacturing was a key industry? It's that only much much worse. Service/financial industry is all we have left and they know it. Edited July 18, 2014 by byron78 Quote Link to comment Share on other sites More sharing options...
@contradevian Posted July 18, 2014 Share Posted July 18, 2014 Big Five now with TSB? Quote Link to comment Share on other sites More sharing options...
alexw Posted July 18, 2014 Share Posted July 18, 2014 Let's not underestimate that we 're all on the hook for a combined £120bn+ for bailing out the banks. That's a whole wedge of cash, printed or not. It impacts everyone in the form of inflation, taxes etc. Breaking up the banks may generate competition. However, competition may encourage the bankers to go for 'easy' business like mortgages, and we're back blowing HPI bubbles. Irrespective of whether the banks are broken up, we need accountability. You sell sh1t loans, your bank goes bust type accountability. This, and not increased regulation will sort the sheep from the goats. Let's not underestimate that we 're all on the hook for a combined £120bn+ for bailing out the banks. That's a whole wedge of cash, printed or not. It impacts everyone in the form of inflation, taxes etc. Breaking up the banks may generate competition. However, competition may encourage the bankers to go for 'easy' business like mortgages, and we're back blowing HPI bubbles. Irrespective of whether the banks are broken up, we need accountability. You sell sh1t loans, your bank goes bust type accountability. This, and not increased regulation will sort the sheep from the goats. Allowing banks to go bust does not work (that's what historical precident has shown anyway). You simply get the greed driven psychopaths making out like bandits then blowing the bank up. Since they've already earned their fortune and never need to work again, it becomes obvious that having the bank thereafter fail is no deterent to their actions. If you want banks to be "safe" you need a mix of regulation, separating out investment, business, and household banking, and making the senior execs in all those banking sectors be the first port of call for capital (after shareholders) in the event of any financial losses. Quote Link to comment Share on other sites More sharing options...
gf3 Posted July 18, 2014 Share Posted July 18, 2014 I would still prefer one state run bank that does all the boring banking. And private banks that can't get their money out of thin air. Quote Link to comment Share on other sites More sharing options...
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