Speculation grows that Barclays will be bailed out as investors 'throw in the towel'

ahai1

Sorry I do apoligise as I was speed reading.

The German government has owned up to it's mistakes and apoligised. I don't see Barclays doing the same.

So bank staff are not responible for encourging people to get 125% mortgages. Funny I don't remember Adma Applegarth selling the mortgages directly.

Going back on topic it seems like the ethical banks and the building societies are the only one's not in trouble. Maybe unlike the high street banks they acted responibley.

Also unlike governments they have not had a change of leadership.

Mike1989

ahai1 wrote: »

So bank staff are not responible for encourging people to get 125% mortgages. Funny I don't remember Adma Applegarth selling the mortgages directly.

Bank staff offer a product, it is up to the customer to make a decision whether they take that product or not. If I am not mistaken Abbey offer a loan available to students, if I went into Abbey and set up their current account on student terms, and the sales person tried to offer me their loan. I would consider it and come to a conclusion as to whether it was beneficial or not.

The same applies to some applying for a mortgage. If they cannot afford to pay back the 125% mortgage if rates go up, then they should not take out that mortgage or whatever percentage that mortgage is. They should come to a decision themselves and not allow a banks sales person to push a product upon them. After all, that person is doing their job providing the products, they do not force the pen in ones' hand and make you sign it.

Going back on topic it seems like the ethical banks and the building societies are the only one's not in trouble. Maybe unlike the high street banks they acted responibley.

Yorkshire Building Society has been exposed to markets and they are ethical. I'm sure Co-op are doing fine but at the end of the day they have a different business plan to Barclays, Halifax and even Lloyds. They are not in trouble because they are not; a - on the stock market, and b - they have a different business plan. Where Barclays gambles money, Co-op only use money they have in deposits. As do many building societies. I do agree that if banks acted responsibly that they would not be in this mess. After all, they have got greedy and it has put us in this mess we are right now.

But even if Barclays had removed themselves from oppressive regime countries, it does not mean the would not have got into financial trouble to begin with. Same with any bank really. Ethical doesn't mean successful all the time. Some building socities have been forced to merge because they have taken risks whilst remaining ethical in how they invest their money.

ahai1

Yes Co-op has a good business plan along with the building societies and credit unions. The banks have a duty to make sure that they are lending money to people who can afford to pay back. Which they have not done. They believed that property prices would rise and rise.

Customers are not always capable of handling money hence why so many people go into debt and treat the overdraft as a loan or free money.

chambta

ahai1 wrote: »

Yes Co-op has a good business plan along with the building societies and credit unions. The banks have a duty to make sure that they are lending money to people who can afford to pay back. Which they have not done. They believed that property prices would rise and rise.

Customers are not always capable of handling money hence why so many people go into debt and treat the overdraft as a loan or free money.

I agree. But ignorance is not an excuse.

Mike1989

ahai1 wrote: »

Yes Co-op has a good business plan along with the building societies and credit unions. The banks have a duty to make sure that they are lending money to people who can afford to pay back. Which they have not done. They believed that property prices would rise and rise.

Customers are not always capable of handling money hence why so many people go into debt and treat the overdraft as a loan or free money.

Agreed, it is the bank's responsibility to make sure the customer taking out the loan or mortgage can afford the repayments. If I was selling a product in any bank or building society, I would go through that with them, even if it meant not getting the sale. As that would be part of the role as a mortgage advisor. Maybe they need to retrain their staff in making sure people get products they can afford, even if there is a rise in interest rates.

ahai1

Yes they should retrain them, take away their bonuses, make them liable for any crimminal acts and put all the IFA's and brokers who committed fraud by supplying false details in jail.

The senior management should not get a penny above their basic salary which is too much for their level of intelligence and the shareholders should be given not even a penny. It is junk stock.

opinions4u

ahai1 wrote: »

Yes they should retrain them, take away their bonuses, make them liable for any criminal acts and put all the IFA's and brokers who committed fraud by supplying false details in jail.

The senior management should not get a penny above their basic salary which is too much for their level of intelligence and the shareholders should be given not even a penny. It is junk stock.

Does nobody get the irony that the government minister in charge of sorting out this mess actually committed mortgage fraud (failure to disclose all his credit commitments) and got away with it?

ahai1

Mandelson is the ideal man to run the banks as he is as questionable as the bankers.

Inactive

ahai1 wrote: »

Mandelson is the ideal man to run the banks as he is as questionable as the bankers.

Agreed,

He also has a " partner in crime " remember Corfu?:D

ahai1

Which one as there were so many undesireable people there?