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

The lion and the wildebeest

Birds flock, fish school, bees swarm, but social being is more than simply sticking together.  Social groups enable specialisation and a sharing of abilities, and enhances ability, learning and creating new tricks. The more a group works together, the more effective they become as a team.  Chimpanzees learn from each other how to use stones to crack nuts, or sticks to get termites.  All around us we see cooperation and learning in nature.  Nature is inherently creative.  Pulling together becomes a rallying cry during a crisis.  We have heard it throughout the coronavirus pandemic.  "We are all in this together", a mantra that encourages people to adopt a common strategy. In an era of 'self-interest' and 'survival of the fittest,'  and 'selfish gene', we lose sight of the obvious conclusion from the evidence all around us.   Sticking together is more often the better approach.  This is valid for the lion as it is also for the wildebeest.   We don't

Noise pollution puts nature at risk

 "I just want a bit of peace and quiet!" Let's get away from all the hustle and bustle; the sound of endless traffic on the roads, of the trains on the railway, and the planes in the sky; the incessant drone; the noise. We live in a world of man-made noise; screeching, bellowing, on-and-on in an unmelodious cacophony.  This constant background noise has now become a significant health hazard.   With average background levels of 60 decibels, those who live in cities are often exposed to noise over 85 decibels, enough to cause significant hearing loss over time.  It causes stress, high blood pressure, headache and loss of sleep and poor health and well-being.   In nature, noise has content and significance.  From the roar of the lion, the laughing of a hyena,  communication is essential for life; as the warning of danger, for bonding as a group or a pair, finding a mate, or for establishing a position in a hierarchy - chattering works.  Staying in touch is vital to working

Therapeutic animal stress

Interacting with animals is known to be therapeutic,  particularly in reducing stress.  But do we consider sufficiently the effects this may have on the animals involved?   We might assume that because it is calming for us, then it must be so for the therapeutic animals, but is this so?  New research suggests that it isn't always without stress for the animals involved.  Positive human-animal interaction relates to changes in physiological variables both in humans and other animals, including a reduction of subjective psychological stress (fear, anxiety) and an increase of oxytocin levels in the brain.  It also reduces the 'stress' hormone, cortisol. Indeed, these biological responses have measurable clinical benefits.  Oxytocin has long been implicated in maternal bonding, sexual behaviour and social affiliation behaviours and in promoting a sense of well-being .  So far, so good.  We humans often turn to animals for stress relief, companionship, and even therapy.  We kno