Skip to main content

The banks raked in the profits and sold our future.

Britain's biggest bank, HSBC has been fined a record $1.9 bn by US regulators for money laundering and sanctions busting. .Money laundering, libor fixing, skulduggery of the highest order; illegality; breaking the law; a law unto themselves. The banks let us all down badly.

Whilst some bankers were cheating and breaking the law; whilst the financial service industry was driving us to ruin, and whilst year on year huge bonuses were being taken,  year on year endowment policies were failing to meet targets,  leaving families in difficulty with their mortgages. I have an axe to grind because mine became one of them although fortunately I didn't depend on it. I started to receive the dreaded letters; first informing me that my endowment was 'on track' (great) but they would keep me informed (ah!); then to say it was 'at risk' (oh!); then to tell me it would not meet its target (inevitable!). Angrily I pulled the plug because I decided I could do better with the money than they could. I cut my losses. But I wondered what on earth the financial 'services' sector had been doing to allow it to happen.

What they had been doing was for ever inventing new 'products' to bamboozle their customers. So many different types of savings, investments, insurance, endowments. Trackers, fixed-rates, flexible this and that; all tweaked to encourage people into debt. And let's be clear they wanted us in debt. They were about selling debt; so much so that unbeknown to us they were selling our debt to each other. A veritable trade in sin. We were being prostituted through our debt. Passed around to be financially gang banged. We were all hung out to dry for the sake of bank profits. 'Service' didn't come into it; financial 'services'  couldn't possible account for what they were doing. There wasn't a service ethos. It was all unethical; all of it! Run by people who appear to have been out of control and who thought they were accountable to no one, least of all their customers. Scoundrels!

When I tackled  my 'friends' in the financial services sector  (yes I do have a few), and particularly those in investment banking, I asked how could they get it all so badly wrong. It wasn't us they replied it was the markets. Markets can go up and down. Indeed they can. How silly of me to assume they had any expertise in the matter. It was all my fault for being stupid enough to think they would take care with my hard earned savings.

But I was informed that it was more likely they would than wouldn't; go up that is. I was shown a wonderful graph comparing the rise of the stock market since the year dot and house prices. Yes it goes up and down, I was reminded, but 'on average', well you can see can't you. On average!   But also wasn't it very silly to base mortgage lending on the premise that it would go on rising and at an unsustainable rate? To offer a product that was unsound is a bit like selling a car knowing it had been clocked. Yes, but they weren't to know of course. And why did they lend so much against so little, often 5 times a persons earnings?

Weren't to know? Then how were we to know?  Millions were mis-sold endowments. Many were mis-sold Payment Protection Insurance. Millions are suffering now because of the egregious unethical behaviour  of the bankers who encourged fast buck sales. And not only are they suffering but they have the ignominy of being called scroungers. The poor are not only shouldering the greatest burden of austerity but they are also being blamed for the poor ethical standards of the bankers.

It was of course unsustainable.  Growth was founded on a false premise; that somehow we could all go on spending the future. Private debt ran out of control fuelled by greed and a have it now culture. The banks raked in the profits and sold our future.

Comments

Popular posts from this blog

Prioritising people in nursing care.

There has been in recent years concern that care in the NHS has not been sufficiently 'patient centred', or responsive to the needs of the patient on a case basis. It has been felt in care that it as been the patient who has had to adapt to the regime of care, rather than the other way around. Putting patients at the centre of care means being responsive to their needs and supporting them through the process of health care delivery.  Patients should not become identikit sausages in a production line. The nurses body, the Nursing and Midwifery Council has responded to this challenge with a revised code of practice reflection get changes in health and social care since the previous code was published in 2008. The Code describes the professional standards of practice and behaviour for nurses and midwives. Four themes describe what nurses and midwives are expected to do: prioritise people practise effectively preserve safety, and promote professionalism and trust. The

The internet trails of Ants

Ants share, and they are built to do just that.  They walk and talk to cooperate in all they do.  Ants have two stomachs, with the second one set aside for storing food to be shared with other ants.  Ants get pretty intimate when meeting each other.  The ants kiss, but this kiss isn't any ordinary kind of kiss. Instead, they regurgitate food and exchange it with one another.  By sharing saliva and food,  ants communicate.  Each ant colony has a unique smell, so members recognize each other and sniff out intruders. In addition, all ants can produce pheromones, which are scent chemicals used for communication and to make trails. Ants are problem solvers.  We may recall the problems puzzles we were given as children. We look to see if the pieces will fit.  Jiz saw puzzles are much the same but with many contextual factors. First, the picture tells a story. Then, once we know what the image might be, it becomes easier to see which pieces to look for.  Ants lay down trails. Just as we f

The Thin End account of COVID Lockdown