the banks – experts in looking after themselves!
Posted by michael on August 30, 2009
More staff cuts are being threatened by the banking system.
Yet these are the people whose actions were the root cause of the global financial recession! Of course their greed for profits was allowed by the Labour government who failed to regulate the financial industry properly. The fact that it was a global failure of regulation does not let Brown off the hook!
New Labour encouraged the banking system to absorb the failing banks. Why? I don’t really understand their reasons, they didn’t seem to be the right course of action at the time!
So the UK has ploughed billions into the banks to stop them from failing – we will all have to pay extra taxes for many years to come for this action.
But would the situation be better if the failing banks had been allowed to fail?
The assets of the failed banks could have been sold, this would have raised a lot of money.
Yes ,the staff would probably all have lost their jobs, but many of them are going to lose them anyway! All the banks are eventually going to dump staff, just to cut costs. The way that Brown has organised things we have paid billions to the banks to take over the failed banks. They have taken the money and are still going to get rid of lots of people in the interests of efficiencies.
The UK is going to pay twice for the staff of these failed banks.
http://itsmyview.me.uk/2009/02/26/failed-bank-costing-us-a-lot-of-money/
