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Posts Tagged ‘Nationwide Building Society’

Scandal at the bank #Barclays

July 3, 2012 1 comment

Barclays acquired the investment banking busin...

Barclays acquired the investment banking business of Lehman Brothers in September 2008 (Photo credit: Wikipedia)

Barclays scandal: Bob Diamond resigns – live – Telegraph.

So Bob didn’t hang around to try and fix it?

I expect he probably thought to himself, who needs all the hassle anyway although his mood might change, if reports to claw back previous bonuses are true.

It’s important to analyse what we have learnt and what has been achieved during this latest debacle.

Well first of all, the Barclays share price has fallen by around 20% since last Thursday, wiping out money from pension funds etc etc…So nobody gained in that respect, in fact everyone lost out.

What have we learned about banks in general? We know that they are capable of manipulating markets to make profits. Didn’t we know that before? We have learnt that the people at the top can’t really be 100% responsible for the actions of their staff but in a world where everyone’s inside leg measurement must be publically available to all and sundry, someone’s head has to roll.

In this case it’s Bob Diamond. Never mind his record at the bank, never mind the fact that Barclays survived the 2008 financial crisis without taxpayer funding, somebody has to go. Who was pushing at the front of the queue? Turns out it may be Mervyn King, who back in 2008/9 told us the economy was fine, partnered by Lord Turner, chairman of the FSA who as usual can verify that the FSA knew nothing about anything!

The beneficiary of all this hiatus seems to be The Nationwide Building Society, where new accounts are being opened in the wake of the recent computer glitch at RBS and the scandal at Barclays.

So what next, do you trust your bank? Of course not, did you trust them before. Of course not! That’s why you’ve not put all your eggs in one basket.

On the plus side the press have a story and the politicians have something to bang on about too. Sadly, in the end though, everyone loses.

Common sense, don’t break a story without it.