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    A "flexible" ring fence around banks.

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    papa_umau
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    A "flexible" ring fence around banks.

    Post by papa_umau on Tue 13 Sep 2011, 12:11 pm

    I am sure that most people in Britain were totally shocked at what happened to the banks during the "crash" a couple of years ago and we were even more shocked when WE were put into hock by being forced to throw billions of pounds at these reckless idiots in order to safeguard that these banks would not go under and that all of the money floating around this flawed system from ordinary savers would not be lost in the catastrophe that followed.

    After this, both Labour and Tory governments of the day promised that there would be a root and branch review about how the banks worked so that this debachle could not happen again.

    Eventually, we saw a report coming out which was drawn up by Sir John Vickers and the ICB which said that the first thhing that should be done would be that the high-street retail banks should have a massive firewall built between it and the more dangerous investment arms so that one could not feed off the other in crisis times.

    Now that this report is out it seems that the ring-fence that was supposed to be built so that these sectors could be totally separated is already looking as if it has holes in it.

    ARE we surprised ? I certainly am not !

    Read about this report and the "FLEXIBLE" ring fence that is proposed HERE


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    zathrus
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    Re: A "flexible" ring fence around banks.

    Post by zathrus on Thu 15 Sep 2011, 12:40 pm

    I don't think anybody could be blamed for thinking that the banks might be let off the hook by actions like these as most of us know that they are the ones that have the influence to shape policy for or against them.

    While I would not expect the Tory government to hit the banks very hard I certainly did expect New-labour to do it after the crash. They did not either.

    I suppose that this institution is just too powerful for even governments to slap down as hard as they deserve to be.

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    Angie baby
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    Re: A "flexible" ring fence around banks.

    Post by Angie baby on Sat 17 Sep 2011, 11:19 am

    And, look what happened recently: Another rogue trader has been done for fraudulently losing over a billion pounds at another bank.

    The trouble is that the banking system is so complex that even the banks don't know what their traders are up to.

    It looks as if after all of the government and watchdog bluster little has changed.
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    papa_umau
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    Re: A "flexible" ring fence around banks.

    Post by papa_umau on Sun 18 Sep 2011, 12:20 pm

    Yes, my dear, such "flexibility" is only going to ensure that the reckless and fraudulent ones STAY reckless and fraudulent if they are allowed to.

    I have thought for a while that - as is being proposed - there should be a very high and impenetrable wall separating the high-street retail banks and the chancers who operate the investment arms in the more riskly sectors of banking. Then if these fools get into trouble again it will only be them that will be looking for outside support. In fact I have also always believed that if these risky arms in banking DO get into trouble they should be allowed to fail so long as the money that is invested in the high-street banks and in gilts is protected.

    When people put money into investment banks that work via speculatory actions they must be aware that while they can make a fast buck via these trades they can also lose their shirts too. That then - by this awareness - is a risk that they are willing to take. When people put savings into ordinary banks they do not expect this money to be risked in the stock-market or the sectors that do dangerous things with their money.

    Anybody ?


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