Banks to face stricter supervision

lemonjelly

http://www.bbc.co.uk/news/business-13453242

Although they always should've been blah blah...

The warning came from Hector Sants, the incoming boss of the PRA and the current head of the Financial Services Authority.
He told an audience of senior banking executives that they could not be relied on to avoid making mistakes that endanger the financial system.
He described the new approach as "close intensive engagement".
"Central to this supervisory model is the presumption that regulators cannot rely on the judgement of the management of firms they supervise, and must take their own view formed from their own analysis of the significant issues which affect the safety and soundness of the firm," said Mr Sants.
"Furthermore, where that judgement differs from that of the firm's management, the regulator must act," he added.

Looks good on paper, & making some popular noises. I await the u-turn that will probably happen though...

Generali

Senior management at many of the banks don't understand a lot of the positions desks are taking so I don't see how the regulator can.

This is another paper tiger.

gagahouse

Generali wrote: »

Senior management at many of the banks don't understand a lot of the positions desks are taking so I don't see how the regulator can.

This is another paper tiger.

The regulators are going to see all the OTC trades within the next 12-18 months and "figure" out the systemic risk, don't worry, they WILL have a handle on this :rotfl:

purch

Senior management at many of the banks don't understand a lot of the positions desks are taking so I don't see how the regulator can

Surely you mean ALL of the Banks and ALL of the positions :eek:

Thrugelmir

The recent provision by Lloyds for PPI mis-selling is equivalent to their entire peak after tax annual profits for 2007. Banking as an industry is going to change. As making money is going to become a lot harder. Cross subsidy of products and services (i.e. free current accounts) is going to be under pressure in the UK. As banks seek to make adequate returns on capital employed.

WardwarkOwner

Thrugelmir wrote: »

The recent provision by Lloyds for PPI mis-selling is equivalent to their entire peak after tax annual profits for 2007. Banking as an industry is going to change. As making money is going to become a lot harder. Cross subsidy of products and services (i.e. free current accounts) is going to be under pressure in the UK. As banks seek to make adequate returns on capital employed.

Depends how much of the provision is actually used. Maybe if the banks stopped employing thieving scum they wouldn't have a problem.

debtistheft

Banks make the majority of their money on the backs of the working man. This has to end.

"Jesus made a whip out of cords, and drove all from the temple area, both sheep and cattle; he scattered the coins of the money changers and overturned their tables."

Thrugelmir

debtistheft wrote: »

"Jesus made a whip out of cords, and drove all from the temple area, both sheep and cattle; he scattered the coins of the money changers and overturned their tables."

and the connection to banks is?

ninky_2

debtistheft wrote: »

Banks make the majority of their money on the backs of the working man. This has to end.

"Jesus made a whip out of cords, and drove all from the temple area, both sheep and cattle; he scattered the coins of the money changers and overturned their tables."

jesus is the new head of the imf then? bet his dad pulled strings for that one.

debtistheft

Thrugelmir wrote: »

and the connection to banks is?

The banks are just modern day moneychangers and usurer's, creating a house price bubble to force people to borrow for the basics of life, such as shelter.

ninky_2

debtistheft wrote: »

The banks are just modern day moneychangers and usurer's, creating a house price bubble to force people to borrow for the basics of life, such as shelter.

"the banks" is a bit of a vague term don't you think? what do you actually mean by it? surely we are all part of the society that creates and sustains "the banks" and the banking system.

i would like to see much stricter limits on lending and agree that lax mortgage lending has driven prices up. however with my current mortgage at under 1 percent interest a year i'm not sure i can hand on heart accuse my lenders of usury. at this rate they are paying me.