Banking services to be split up
Discussion
As has been predicted for months, the first indications of how the Investment and retail sections of banks will be split has now been announced. Took long enough to come up with what would appear to be a fairly simple structural change. Suppose we will be treated to much bleating from the banking industry. Question is will the retail sections now make bold attempts to increase charging rates for various services.
crankedup said:
As has been predicted for months, the first indications of how the Investment and retail sections of banks will be split has now been announced. Took long enough to come up with what would appear to be a fairly simple structural change. Suppose we will be treated to much bleating from the banking industry. Question is will the retail sections now make bold attempts to increase charging rates for various services.
Did you read a totally different set of articles to me?Yes I suppose many are already set up as subs, from what I can make of it the customers of the bank will be protected from any adverse situations that may be created by the investment side. Guess this refers to the 2008 scenario, the retail customer will have no fears of loosing their cash within any accounts held in retail section. If an investment bank gets into trouble the Government will no longer have to find cash for bailouts. Has anyone any detail on these recent announcements?
Bing o said:
And the simpletons will have got their just rewards. Remind me again how many IBs were bailed out compared to retail?
Wasn't many was it! just as well considering the damage just the odd few caused. The service I have recently received from a large well known Spanish Bank was,for my expectation level, 'inadequate' but at least they pay a little interest on accounts in credit. Not enough though to stop me looking at some Building Societies (Mutual) as an alternative for banking services.Sure I heard that the U.K.interim report upon banking mentioned 'encouraging' retail bank customers to shop around and change banks frequently if service falls short.
Bing o said:
You do realise that the global recession is well and truly over, but the reason Europe and the US are in the s
t is little to do with the IBs don't you?
Ask yourself this. What did the IBs buy that caused all the trouble?t is little to do with the IBs don't you?Mortgages.
Then ask yourself where those came from?
Retail Banks
davepoth said:
What did the IBs buy that caused all the trouble?
You've missed the basic point that the government overspend in Ireland, Portugal, Greece, UK etc. has nothing to do with Mortgages or IBs (other than they are part of the mechanism to distribute risk). Living beyond their means. Simples really. In the process some bankers, pwoperty developers, footballers, consultants, you name it .. got richer .. but that's neither here nor there.NoelWatson said:
Alan Greenspan?
More like Freddy and Fannie.NoelWatson said:
Not as much as Joe Public when they realise how much they will have to pay (and arguably should've been paying all along).
Agreed, but Joe Public has a choice of which bank is the preferred choice. Government is making noises about increased competition within the industry. Most likely nothing much will change as most people, its said, are to idle to switch banks for a better deal. It seems fairly clear to me that the reason that the banks don't want to separate their 'retail' divisions from their 'investment' divisions is that the 'investment' divisions need the 'retail' capital to gamble with. The reason that the gambling is not seen for what it is is that the losses are hidden in supposedly appreciating assets. The reason that the Governments get involved is that politicians are not terribly smart or principled and any system which appears to create prosperity from nowhere is a bandwagon they can't resist jumping on, and indeed promoting.
The 'City' is only a self serving fraudulent scheme which is struggling to cope with the concept that few people have any trust in them these days. We owe them nothing, they do nothing for us, let them go to Switzerland or hell if they prefer.
The biggest current problem in the real world is that retail banking, which lets face it was never traditionally staffed with the sharpest tools in the set, does not provide the man or business in the street with the efficient or proactive banking service which is essential for real commerce. Instead it is allowed to overcharge clients to make up some of the huge capital which has been lost.
The 'City' is only a self serving fraudulent scheme which is struggling to cope with the concept that few people have any trust in them these days. We owe them nothing, they do nothing for us, let them go to Switzerland or hell if they prefer.
The biggest current problem in the real world is that retail banking, which lets face it was never traditionally staffed with the sharpest tools in the set, does not provide the man or business in the street with the efficient or proactive banking service which is essential for real commerce. Instead it is allowed to overcharge clients to make up some of the huge capital which has been lost.
cardigankid said:
It seems fairly clear to me that the reason that the banks don't want to separate their 'retail' divisions from their 'investment' divisions is that the 'investment' divisions need the 'retail' capital to gamble with. The reason that the gambling is not seen for what it is is that the losses are hidden in supposedly appreciating assets. The reason that the Governments get involved is that politicians are not terribly smart or principled and any system which appears to create prosperity from nowhere is a bandwagon they can't resist jumping on, and indeed promoting.
The 'City' is only a self serving fraudulent scheme which is struggling to cope with the concept that few people have any trust in them these days. We owe them nothing, they do nothing for us, let them go to Switzerland or hell if they prefer.
The biggest current problem in the real world is that retail banking, which lets face it was never traditionally staffed with the sharpest tools in the set, does not provide the man or business in the street with the efficient or proactive banking service which is essential for real commerce. Instead it is allowed to overcharge clients to make up some of the huge capital which has been lost.
AmoebaThe 'City' is only a self serving fraudulent scheme which is struggling to cope with the concept that few people have any trust in them these days. We owe them nothing, they do nothing for us, let them go to Switzerland or hell if they prefer.
The biggest current problem in the real world is that retail banking, which lets face it was never traditionally staffed with the sharpest tools in the set, does not provide the man or business in the street with the efficient or proactive banking service which is essential for real commerce. Instead it is allowed to overcharge clients to make up some of the huge capital which has been lost.
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