Banks: one step forward, many more to go
Amid the slurry of excessive bonuses and the exploitation of unsuspecting small and medium-sized businesses, the government has had a dramatic change of heart on banking.
Royal Bank of Scotland is fined almost £400m for its role in the Libor rate-fixing scandal, the third bank forced to pay a penalty by regulators in Britain and the US.
Amid the slurry of excessive bonuses and the exploitation of unsuspecting small and medium-sized businesses, the government has had a dramatic change of heart on banking.
Barclays chief executive Antony Jenkins says he is “shredding” Bob Diamond’s legacy as he tells MPs that bonuses will be cut to compensate people wrongly sold financial products.
George Osborne is threatening to break up banks if they fail to ring-fence risky investment banking activity away from their retail operations.
British Bankers’ Association chief executive Anthony Browne says George Osborne’s plans to “electrify the ring fence” in banks’ operations is a “sword of Damocles” hanging over banks’ heads.
Barclays says finance director Chris Lucas, the only remaining top ranking executive at the bank following the Libor scandal, is to retire, along with group general counsel Mark Harding.
It’s amazing isn’t it, that five years on from the banking crisis, bank bosses are still having to forego their bonuses for bad behaviour. Today it was the turn of Antony Jenkins.
With Britain in danger of plunging into its first triple-dip recession, should consumers start “behaving irrationally” and consider buying a new bathroom as a way to boost the economy?
Top executives at Lloyds TSB were warned that payment protection insurance was being mis-sold four years before they stopped selling the product, it is revealed.
On the markets, it’s all about junk bonds in the race to make a quick buck. But isn’t this the market that has just experienced the worst financial meltdown in memory?
The ring-fence between Britain’s high street and investment banks is not effective and needs to be strengthened, say MPs in a highly critical report.
As the banking commission calls for an “electrified” ring fence around banks’ riskier business methods, Siobhan Kennedy meets a hotelier whose life was ruined by one of these practices.
As the banking commission demands stronger ring-fencing of retail banks from their casino arm, Vince Cable seems to be wavering in his commitment to break up banks that are “too big to fail”.
Banks sold small businesses interest rate swaps to protect them from increases in interest rates. The problem is, hidden penalties began to kick in when the rates tumbled.
HSBC agrees to pay $1.9bn (£1.2bn) to US authorities in relation to a money-laundering investigation into the transfer of billions on behalf of clients in Mexico, Saudi Arabia, Iran and Syria.