The great unanswered question of the banking crisis

The problems that banks are causing to economies around the world are continuing and we shall hear more of them as time goes by. The latest news is that regulatory authorities have fined UBS one billion US dollars for manipulating LIBOR rates. Other banks have already been fined and more banks will be fined in future. Using a fine as a means of punishing a corporation for what is clearly criminal behaviour is a soft option. However the regulatory authorities and prosecutors have little choice.

They cannot close the banks down, because that would inflict instant economic damage. If a lawyer behaved in the way the banks have behaved the lawyer would lose the right to practice law. That would inconvenience a few clients, but no lasting damage would be done. If you apply the same logic and action to banks you would cause grave damage to millions of people who have deposited their savings with banks and millions of businesses you need to use banks. You would also make the problems that banks inflict on the public worse because there would be fewer banks which would take up the business, making the banks even more powerful than they are.

The solution is to break up the size of banks. Banks like Barclays, RBS, Bank of Scotland, UBS, Lloyds TSB are simply too big for our own good. We know that they have failed once, and have become insolvent; governments have papered over the cracks of insolvency, but that insolvency is still there. Fining them for criminal behaviour means that ultimately the ordinary customer pays the fine. The highly paid officials and traders simply carry on as before unpunished. The auditors who audited accounts without understanding the risks that the banks were taking in complicated trades have gone unpunished. Those traders, directs and auditors have not even been fined; they enjoy their ill-gotten gains in great luxury while the people whose money they stole find themselves in poorer economic plight.

The solution is to limit the size of banks. It is impossible to control and regulate a huge bank; if you break the bank up into ten smaller businesses the regulators do have a chance of regulating the smaller business. You would need to then have laws to prevent banks gobbling up their competitors. It is not rocket science, but there seems to be fear amongst politicians who are frightened of offending the money men and enacting laws which to the ordinary member of the public seem obvious. The banks must see this coming, but are fighting a rear-guard action of delay. We cannot delay; we must act quickly to break up the banks.

One feeling that I come across when talking to people about banks is an answered question: why haven’t the bankers been punished if they have in effect stolen money? Why haven’t the government taken their money away?

It is a good question by remains the great unanswered question of the banking crisis, which is rapidly dragging the economy of the developed world into the dustbin.

 

2 Responses

  1. Salt Water In The Blood of every nation, and as
    the title suggests, there is an innate saltiness in the blood of all those in power today, from the bank owners to local authories, forceibly under their rule, 1-25 can easily be bought over, and then hand out the cream to their freinds.

    It is a natural illness and part of society that when left unchecked, wreaks havoc with the smooth running of the paradigm at any moment in time.

    The HSBC is about to be fined yet another mighty sum, but where does this money come from, and where does it end up. Basically the actions and gathering of the family owned banks of late in Africa, is allowing in the guise of fines, to bring in unsavioury money from unsavioury factions, and call them fines, wait long enough and one will see the information emmerge.

    Every role model of honesty and world peace of note has been destroyed by the salty warriors, take Marley and Kennedy for instance.

    These sodium banked and blooded reptillian type entities, will first try to shame, then purchase and then kill anyone who stands in their way.

    All the whole needs to do, is peaceably refuse to contract away their physical labour and grow a true backbone for fairness right throughout their whole, otherwise they will remain slaves to the rythm, In the name of these Gods, who now decimate our whole for their continual attempts of total control over our future childerick and minds, now split and in constant reasolution from within, that they cannot see the sheer destructiveness taking place, before their very eyes.

    The money trouble is by design and lies much higher than all the banks, it is insilled into the global society who have grown lazy on the promise of an easy innings, the result is for many now very easy to see, if they take their eyes away from the X factor.

    It is a cancer which is not going to go away, and a triology of fear and internal rotteness if left for too long.

    The net in the logo of the United Nations is closing fast, its time to wake up folks. Yes it will be life as usual, but not how we might like it to be.

  2. A poem by Alan Watt

    “International Monetary Fund has So Many Scams,

    A Wolf in Sheep’s Clothing Fleecing the Lambs

    For Nothing Backed Currency it Offered Solution,

    Becoming very Rich, Leaving Behind Destitution,

    It Pretends to Regulate International Exchanges,

    Giving Itself More Power with Self-Made Changes,

    Loaning Out to Countries, So They can Invest

    In U.N. Scam Business, Charging High Interest,

    Power Over the World, Seems We’ve All been Sold

    To Private Profiteers Demanding “Payment in Gold”

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