Are the Banks Modern Day Robber Barons?

[cheawa]

Are the Banks Modern Day Robber Barons?

 

The banks are a law unto themselves. They seem to be able to pay themselves whatever they like, they are also able it seems to find ways around paying the required tax which would have the tax man knocking on our doors should we try the same ‘fiddle’. The government seems unable to control the situation falling for the old chestnut of blackmail. If you don’t like it we may well move to another country or if we don’t pay big bonuses we will loose our best people to other banks. Frankly can you imagine the interview? What Bank did you last work for?’ ‘What were your main achievements whilst in their employ?’ I worked for a large British Bank and along with my illustrious colleagues was responsible for our employer going to the government cap in hand in order to be bailed out. Fine welcome we will pay you a great salary along with bonuses if you will do the same for us.

 

Isn’t it about time that a good old fashion bank was set up? One with bank managers that took our money on deposit paid us a decent rate of interest and then lent it to companies and people wishing to invest in property or expansion etc.

 

With a bank such as having been set up the British public could take charge of their own affairs. If we did not agree with what our bank was doing with regard to bonus payment or paying taxes we could and should withdraw our money from these banks and place it the old fashion bank described above. I wonder what the response of the big banks would be if people all over the country started to withdraw their funds placing them in the safe haven of a bank that really did care.

 

We may be able to achieve something that the government has been unable to achieve. If you feel incensed as I do then post your comments. If you know something about banking tell us how we can do more to bring these robber barons to justice.

[Waldo]

Nice idea, but..

 

People are basically governed by self-interest; how would you ever have a bank that actually cares? Do you think bank managers would work for a pittance at your bank, when they could be rolling in it, at another? It would go against their own self-interest to do so.

 

Yes. They are robber barrens of the now; and it seems like legal organised crime, from where I'm standing. I don't hold out much hope of things changing for the better; you will always have the problem of people serving their own self-interest etc.

[Fingers]

Isn’t it about time that a good old fashion bank was set up? One with bank managers that took our money on deposit paid us a decent rate of interest and then lent it to companies and people wishing to invest in property or expansion etc.

 

With a bank such as having been set up the British public could take charge of their own affairs. If we did not agree with what our bank was doing with regard to bonus payment or paying taxes we could and should withdraw our money from these banks and place it the old fashion bank described above. I wonder what the response of the big banks would be if people all over the country started to withdraw their funds placing them in the safe haven of a bank that really did care.

 

We may be able to achieve something that the government has been unable to achieve. If you feel incensed as I do then post your comments. If you know something about banking tell us how we can do more to bring these robber barons to justice.

 

Institutions like the bank you describe exist: they are called building societies. A few decades ago there were more of them but some of them ceased to be building societies because their members voted for them to become banks and received a windfall when they did so. Some of those former building societies include Northern Rock (nationalised), the Halifax (taken over by Lloyds which was part-nationalised) and the Bradford & Bingley (nationalised).

[cheawa]

Lets not forget what is happening in North Africa. People power can change anything indeed throughout history the only time lasting change has taken place is when the people have decided enough is enough we will stand for this no longer. We want change and we want it now. With the internet we do not have to 'march' or 'take to the streets'. What we do have to do however is to marshall people power. We have to be possitive not negative. There is nothing we can do is no longer acceptable.

[cheawa]

Lets not forget what is happening in North Africa. People power can change anything. Indeed throughout history the only time lasting change has taken place is when the people have decided enough is enough. We will stand for this no longer. We want change and we want it now. With the internet we do not have to 'march' or 'take to the streets'. What we do have to do however is to marshall people power. We have to be possitive not negative. Saying 'there is nothing we can do' is no longer acceptable.

[Waldo]

Yeah, you can bet your bottom dollar it won't stay 'People Power' for long.

 

There will be more corrupt people waiting in the wings, content to go along with the flow for now, maybe even subtly influencing events to meet with their own ends. When old regimes have been done away with, they they will make moves to establish themselves and their cronies in positions of power; and so the fun all starts again.

 

I'm not saying that's a good thing of course, just my own perception on human nature.

 

Maybe the internet will turn out to be a tool for good (well, like everything, something of a double edged sword). Maybe it allows people to organise and share ideas; a lot quicker and more freely than at any time in the past; and that seems to be working out well for the peoples in the middle east.

 

Another good thing, for people power, and here I think the internet can play a role too; is education. The more educated and aware of what's going on people are; the harder it is to con them, and keep them down..

[Rupert_Baehr]

Are the Banks Modern Day Robber Barons?

 

You appear to be mixing up (or rather co-mingling) the High Street Banks with Merchant Banks. They're both called Banks (and High Street Banks may also have Merchant/investment Banking arms, but they do different things.

 

The banks are a law unto themselves. They seem to be able to pay themselves whatever they like, they are also able it seems to find ways around paying the required tax which would have the tax man knocking on our doors should we try the same ‘fiddle’.

 

Really? Do the people in your local branch set their own salaries? - I doubt it. They are employees. Their boss probably sets their salaries, his boss sets his own and so on up to the Board of directors, whose salaries are set by the shareholders.

 

As for them not paying 'the required tax' then if they were to try that, they would have the Inland Revenue down upon them like a ton of bricks if they tried. They may move business out of the UK if they think they can make more money(and pay less tax) by doing that, but they daren't do anything illegal.

 

The only people who set their own pay are those who are self-employed. If you set up your own business, you can pay yourself as much as you like. IF you pay yourself more than you are worth (more than you earn), you may have a problem.

 

The government seems unable to control the situation falling for the old chestnut of blackmail. If you don’t like it we may well move to another country or if we don’t pay big bonuses we will loose our best people to other banks.

 

Do you know for sure that they won't? The government owns about 84% of RBOS. As the major shareholder, the government could tell RBOS that they are not to pay out large bonuses, but senior Banking executives (who certainly know far more about the industry than I do) have said that if they don't pay those bonuses, they won't keep their top staff.

 

Frankly can you imagine the interview? What Bank did you last work for?’ ‘What were your main achievements whilst in their employ?’ I worked for a large British Bank and along with my illustrious colleagues was responsible for our employer going to the government cap in hand in order to be bailed out. Fine welcome we will pay you a great salary along with bonuses if you will do the same for us.

 

I wonder how many of those who screwed up and who are no longer under contract to the banks they nearly ruined are still working for the banks? - We've all heard about the outrageous 'retirement bonuses' but presumably those were paid because the Banks had to pay them, under the terms of the contracts which had previously been agreed. - Hopefully, the people who write those contracts will think more carefully next time, but what's done, is done.

 

As for a Bank employing a known 'screw-up' why should they? If you were running a business and somebody applied to you for a job and you knew that the candidate couldn't do the job, would you employ him/her? - I wouldn't and I don't know anybody who would. Why should the banks be any different? If you're paying top salaries, you're hardly likely to pay them to somebody who you think can't do the job.

 

Isn’t it about time that a good old fashion bank was set up? One with bank managers that took our money on deposit paid us a decent rate of interest and then lent it to companies and people wishing to invest in property or expansion etc.

 

With a bank such as having been set up the British public could take charge of their own affairs. If we did not agree with what our bank was doing with regard to bonus payment or paying taxes we could and should withdraw our money from these banks and place it the old fashion bank described above. I wonder what the response of the big banks would be if people all over the country started to withdraw their funds placing them in the safe haven of a bank that really did care.

 

If one bank paid its depositors a considerably higher rate of interest than did the others, then it would have to charge those who borrow money more. Would companies go to the bank which charged them more for the money they need or to the bank which charged them less?

 

If interest rates rise across the board, then prices will go up, inflation will go up, companies will be less likely to borrow money (too expensive) and fewer jobs will be created. That may well happen anyway, but it won't be good for the economy.

 

If you don't like the High Street Banks, why don't you move your account to a Credit Union or to a mutually-owned organisation? (There are still a few of those around. - The Co-Op?)

[Vague_Boy]

They seem to be able to pay themselves whatever they like

 

Well if they're a private company, why not? It's their business (literally).

 

 

Lets not forget what is happening in North Africa

 

Or indeed why it's happening.

 

UN Links Uprisings To Soaring Food Prices

 

 

What we do have to do however is to marshall people power. We have to be possitive not negative. There is nothing we can do is no longer acceptable.

 

Looks like the banks aren't resting on their laurels either.

 

HSBC reveals plans to quit London for Hong Kong

 

The loss of HSBC's headquarters in London, although threatened for months because of the increase in financial regulations, would be a severe blow to the Coalition which, despite some of its 'banker bashing' rhetoric, is relying on a private-sector-led recovery.

[Rupert_Baehr]

 

UN Links Uprisings To Soaring Food Prices

 

And food prices - particularly the prices of imported food - are rising in the Developed world, too.

 

 

Looks like the banks aren't resting on their laurels either.

 

HSBC reveals plans to quit London for Hong Kong

 

Shock! Horror!

 

Surely that can't be so! - After all, as so many posters have said on this forum - The rhetoric of the banks is merely an empty threat; they'd never consider moving.

 

I suppose many SFers will be pleased. After all, there will be far fewer of those greedy bankers getting huge bonuses (in the UK.) And far less tax revenue from the taxes paid bx the individuals who receive those bonuses and from the banks which are no longer there.

[Guest sibon]

 

Looks like the banks aren't resting on their laurels either.

 

HSBC reveals plans to quit London for Hong Kong

 

Oh no they don't

In any case, Hong Kong would be a logical base for the Hong Kong and Shanghai Bank, don't you think?