Banks Today Seem To Be Run By Liars and Crooks.
Another day another banking scandal.
Another day and another bank is hit by a huge set of fines for criminal wrongdoing that should have some senior executives facing a total loss of all they own and some serious jail time. This time it’s RBS, (Royal Bank of Scotland), and this failed organisation has just set aside another £3.1 billion, $3.8 billion), to cover claims by the United States authorities that it mis-sold mortgage products. (Mis-selling is a polite way of saying lying and cheating). This makes a total of £6.7 billion this useless bank has had to set aside to cover fines for selling toxic mortgages. RBS is 72% owned by British Taxpayers, so just who is paying these fines? Me and you, that’s who.
I sincerely believe that banking establishments are more dangerous to our liberties than standing armies. ~ Thomas Jefferson
Name any bank or financial institution, or any of the world’s major financial centres. from ABN AMRO, Barclays, Deutsche Bank, (just fined £500 million), HBOS, to Wells Fargo, and if you turn over a rock you will find people who only care for themselves and nothing for their customers, staff, shareholders, or the wider world and greater good.
I can pull the name of any bank out of the Bankers Almanac, and without trying very hard find that it’s rotten to the core.
Another wrinkle recently to come to light is a product called Shared Appreciation Mortgages sold by Barclays and Bank of Scotland. These complicated mortgages were deliberately targeted at older people, who were then rushed into taking unsuitable loans without having had proper financial advice. Which just goes to prove that one should never buy a product or take out a loan you don’t fully understand, and you should never, ever believe anything a salesperson tells you. (Never, ever date a salesman either.) Even a salesperson working for your bank.
To give you some more examples of dodgy dealing by banks, that pillar of German financial prudence, Deutsche Bank, owes $7.2 Billion to the US department of Justice for fines and penalties imposed for Deutsche’s role in the toxic mortgage crisis. Royal Bank of Scotland remains a basket case after Fred ‘The Shred’ Goodwin ruined the venerable institution through spending more time thinking about screwing his female junior assistant than he did about proper banking. And the oldest bank in the world, Italian Monte dei Paschi de Siena, has just been bailed out to the tune of £17 Billion by the equally broke Italian Government because of chronic bad lending that threatens the savings of a third of hard struck Italians.
How in the World did Banking become synonymous with dirty dealing, thievery, and dishonourable behaviour?
It isn’t because today’s bankers are struggling to turn loss-making institutions into banks that, at least, make a profit. And, it isn’t because there isn’t honest money to be made in the world of banking and finance today. Rather it’s because today’s generation of money-men want instant results, rather than slow and steady growth accompanied by slow and steady profits.
Slow and steady profits aren’t exciting enough for today’s young Masters of the Universe, who want instant and huge money-making schemes and products to justify their equally huge salaries and bonus packages. It’s estimated that in the City of London this year’s round of bonus payments will top $15 billion.
It is our priority to seek the best outcome for our shareholders, customers, and employees. ~ Ross McEwan, Chief Executive, Royal Bank of Scotland
I don’t believe a word of it. If the banks cared anything about their employees and customers they wouldn’t keep closing branches. Not to mention paying failed politicians like David Cameron and George Osborne a fortune to schmooze in Davos.
My advice is; stop trusting your bank, always carefully check your bank and credit card statements, never buy anything your bank tries to sell you, and never sign anything you don’t fully understand. Personally, I wouldn’t buy shares in a bank either, their roller-coaster world is far too crooked and exciting for me.
Proper banking is as safe and boring as watching paint dry.
these thoughts are mine, and mine alone