Do You Think That Banks Are Crooks?

Status
Not open for further replies.
Date sort Score sort
redhen said:
And yes, i think banks are crooks..
duc.gif
Click to expand...

I don't
tongue2.gif
 
Stephanie739 said:
Who will receive the fine from Barclays? Are those claiming harm from the rigging suing? I think this is how I would handle it, but I guess if it is the public who was harmed, the government has a duty to step in, right?
Click to expand...

Barclays has already been fined by US and UK regulators for LIBOR rate manipulation. So, it's established by regulators and admitted by Barclays that rules were broken. I believe that falls short of criminality but the ruling is a serious comment on the bank itself. We are left to decide for ourselves just how ethical this company is. I don't know where the fines will go. Perhaps into general US and UK Treasury coffers.

Now that the UK Serious Fraud Office is investigating Barclays, the matter becomes more serious. In addition to fines, officers of the company may receive prison sentences. Any Director who is convicted may be banned from being a Director of any UK company for the future. One question is how far up the chain of management the criminal activity, if it's proven there was any, went. We have already seen Diamond doing the same as the Murdochs, claiming ignorance and trying to pass the buck to lower level employees. You can bet that those employees got a severance cheque stapled to a severance deal that had a lengthy confidentiality clause.

This will be an interesting case, especially if evidence of criminal activity in other banks is revealed and that seems very possible. Banks can do with customers money and loans much more than can other businesses. If there is a run on a bank, it can shut its doors because it has less in cash reserves than it has taken in deposits. They couldn't pay all of us. It is now clear that they are not satisfied with that privilege and have willingly broken regulations and, possibly, laws.

During the past few weeks, banks in the UK and the Republic of Ireland, owned by the Spanish bank Santander, introduced a new computer system. Some programming for it was done in India where a programmer botched the code. The whole system fell apart. Customers' pay was not credited to their accounts, loan and mortgage payments from those accounts were bounced and customers could not withdraw their cash. This went on for about a week. The banks promised to compensate customers for any losses but some have credit rating problems now. The banks had the money, of course, and were no doubt investing it on the overnight markets for their own benefit. That's the main reason why banks take so long to show credits on accounts - they use the money for their own benefit whilst denying customers access to it. So, while customers were in difficulties, the banks were legally making profit for themselves.
 
Status
Not open for further replies.

Similar threads

HallFamilyFarm
Postal cuts....will it affect baby chick shipments? Hatchery responds!
2
Replies
17
Views
4K
mochilee
mochilee

New posts New threads Active threads

Back
Top Bottom