Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Regaining Trust In Banks 'years Away', Says Andrew Tyrie

Recommended Posts

http://www.bbc.co.uk/news/business-29046605

Regaining public trust and confidence in banks is still years away, the chairman of the Treasury Committee, Andrew Tyrie, has told the BBC.

Despite a raft of new rules designed to rein in bad practice, a culture change at banks has a long way to go, he said.

"My impression is that the spirit is willing, especially at the top, but sometimes the flesh is weak," he told Wake up to Money.

Mr Tyrie said a lack of confidence in banks was hurting recovery.

Some small firms were wary of asking banks for loans and advice because they felt that dealing with financial institutions was still risky, and that was hindering growth, he warned.

He said: "Confidence has been badly shaken needs to be re-built. That's a big job and its not going to be done in a year or two. It's a job that will need to take place over many years."

His comments come six years after the banking crisis exposed how firms had misled customers and engaged in illegal activities, sparking huge fines from regulators.

People don't trust the banks as they are zombies refusing to admit the losses they have on the their books. Why would the public trust the banking system when accounting wise they are permitted to mark to fantasy in any other business this would be considered fraud.

Share this post


Link to post
Share on other sites

The bulk of the ill-gotten gains and in homeowners and BTLers homes.

Bankers skimmed off what, 10% in bonuses from the total pool of mortgage-debt expansion, vs the 90% in HPI.

Don't trust the homeowners and later mortgage debtors, values marketd to fantasy, but very few willing to sell for less than it's worth, and keen to tell you about forever hpi.

Share this post


Link to post
Share on other sites

Perhaps if Tyrie confiscated Goodwin's assets & pension and he was living off benefits in a council flat people might take him more seriously.

Share this post


Link to post
Share on other sites

Almost makes it sound as if businesses are being unduly wary. It seems to me that it is entirely reasonable to treat rampant criminality as a trait you'd rather avoid when seeking a company to approach for business finance.

Few sound business want to borrow big. Duly aware that it's very risky to seek to borrow, to compete in an overvalued zombie business world - unless you've got something a bit alternative and special. Of course others always applying for debt to overpay.

Lot of business people got chips on their shoulders too, blaiming (Serpico style), the banks for recession... despite overexpanding at huge risk, and trying to own it all.

Share this post


Link to post
Share on other sites

Look at the rise of crowdfunding in many forms.

Look at the rise of fund platforms of many different types.

Look at the rise of retail bonds, and the blurring of the barriers to corporate bonds and gilts.

Look at the transformation in Venture Capital.

Look at the rise of bitcoin.

These things are the natural progression of the financial world. If only zombie banks had been allowed to collapse, maybe these and other new/disruptive ways of running finance might have evolved a whole lot further, and even become the norm. By saving banks, we're putting obsolete rust-buckets in the way of progress!

Share this post


Link to post
Share on other sites

Look at the rise of crowdfunding in many forms.

Look at the rise of fund platforms of many different types.

Look at the rise of retail bonds, and the blurring of the barriers to corporate bonds and gilts.

Look at the transformation in Venture Capital.

Look at the rise of bitcoin.

These things are the natural progression of the financial world. If only zombie banks had been allowed to collapse, maybe these and other new/disruptive ways of running finance might have evolved a whole lot further, and even become the norm. By saving banks, we're putting obsolete rust-buckets in the way of progress!

If the banks aren't lending on good terms, then all these others who've stepped in, are likely to get burned for it - in my opinion - into the true crash.

Some of those retail bonds yielding good returns are going to see 'savers' lose out.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   202 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.