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Giant Turd Reports Suprise Increase In Profits

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RBS reports surprise rise in profit

Royal Bank of Scotland says it expects pre-tax profits of £2.65bn for the first half of the year but warns of 'bumps in the road ahead'.

Thank god Gordon the moron bought this bank.

Should be easy for banks to make huge operating profits when they can access all the funds that they need from the Central Bank at near zero interest, keep their dodgy loans 'performing' thanks to theaforementioned near zero rates and government-sponsored forbearance and avoid marking their highly devalued assets to market (or in the case of the US banks, even sell them at 'full price' to the Central Bank).

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Should be easy for banks to make huge operating profits when they can access all the funds that they need from the Central Bank at near zero interest, keep their dodgy loans 'performing' thanks to theaforementioned near zero rates and government-sponsored forbearance and avoid marking their highly devalued assets to market (or in the case of the US banks, even sell them at 'full price' to the Central Bank).

Yep. it is called fraud, just this time state and central bank sponsored fraud.

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As I always say - Banks aren't real businesses? Who ever heard of a business where you can set the price of your own assets and manage your liabilities by simply borrowing for free from the central bank? Its the equivalent of buying your stock for free and then when you didn't sell enough simply editing your balance sheet to make it look like you made a profit because your stock increased in value...

Even Nigel Lawson wrote an FT op ed telling people that banks aren't real businesses. The dilemma is that they can't be nationalised as the flow of capital will become gridlocked under bureaucrats, and they can't be privatised as the profiteering sociopaths in society decide where cash is allocated based on kickbacks and friendships. Shareholders don't have a clue what banks have on their balance sheet and can't really police their behaviour properly. Regulators spend their time aiming to get jobs at banks so they aren't exactly non-biased.

I for one think there should be smaller community banks that have standardised central reporting which must be open to analysts in an electronic form. You should also only retain bonuses based on the end term of any deal you create e.g if its a 30 year derivative deal you realise 1/30th every year or claw back if there is a loss.

Who should own and run banks? What do the forum think?

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As I always say - Banks aren't real businesses? Who ever heard of a business where you can set the price of your own assets and manage your liabilities by simply borrowing for free from the central bank? Its the equivalent of buying your stock for free and then when you didn't sell enough simply editing your balance sheet to make it look like you made a profit because your stock increased in value...

Even Nigel Lawson wrote an FT op ed telling people that banks aren't real businesses. The dilemma is that they can't be nationalised as the flow of capital will become gridlocked under bureaucrats, and they can't be privatised as the profiteering sociopaths in society decide where cash is allocated based on kickbacks and friendships. Shareholders don't have a clue what banks have on their balance sheet and can't really police their behaviour properly. Regulators spend their time aiming to get jobs at banks so they aren't exactly non-biased.

I for one think there should be smaller community banks that have standardised central reporting which must be open to analysts in an electronic form. You should also only retain bonuses based on the end term of any deal you create e.g if its a 30 year derivative deal you realise 1/30th every year or claw back if there is a loss.

Who should own and run banks? What do the forum think?

Banking is the closest thing to magic that human beings have ever managed to achieve- walk into a bank, ask for a loan and if granted the bank will simply create the 'money' you borrow out of thin air- instant spending power out of nothing at all.

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