Bank of Scotland

macaque_2

Some people say we should stop having a go at the banks. If the regulators and HMG did their jobs properly, this would not be necessary.
This fine by the FSA amounts to less than the bonus given to a single senior bank employee. Given the nature and avoidability of this crime, a £2billion fine plus a criminal prosecution of senior managment would have been a better outcome.

Of the complaints, 77% were made by inexperienced customers and 55% were from those aged over 60.
"This fine reflects the Bank of Scotland's serious failure to treat vulnerable customers fairly," said Tracey McDermott, the FSA's acting director of enforcement and financial crime.

The Financial Services Authority (FSA) has fined the bank £3.5m after it rejected many complaints when they should have been upheld.

http://www.bbc.co.uk/news/business-13541860

WardwarkOwner

Good idea, I also think that stopping them making donations to political parties and scrapping or delaying bonuses so that there is time to confirm that these deals were actually beneficial and hence worthy of a bonus would be a step in the right direction.

Thrugelmir

macaque wrote: »

This fine by the FSA amounts to less than the bonus given to a single senior bank employee. Given the nature and avoidability of this crime, a £2billion fine plus a criminal prosecution of senior managment would have been a better outcome.

The difficulty with fines and penalties is that its the customer who foots the bill. Whether it be banks, insurance companies, ultility companies.

macaque_2

Thrugelmir wrote: »

The difficulty with fines and penalties is that its the customer who foots the bill. Whether it be banks, insurance companies, ultility companies.

Thats like saying you should not fine a thief because he will have to go out and steal to pay the fine.

The problem with UK banks is that they are not competetitve. The banks and the regulators have made hurdles to entry too difficult.

ILW

macaque wrote: »

Some people say we should stop having a go at the banks. If the regulators and HMG did their jobs properly, this would not be necessary.
This fine by the FSA amounts to less than the bonus given to a single senior bank employee. Given the nature and avoidability of this crime, a £2billion fine plus a criminal prosecution of senior managment would have been a better outcome.






http://www.bbc.co.uk/news/business-13541860

What crime has been commited?

macaque_2

ILW wrote: »

What crime has been commited?

Fraud. Selling unsuitable financial products for commercial gain to people (many of whom are old) who do not understand them is fraud.

Thrugelmir

macaque wrote: »

The problem with UK banks is that they are not competetitve. The banks and the regulators have made hurdles to entry too difficult.

In what way not competitive?

In most markets there are dominant brands. Banking is no different to others. Financial institutions have always required capital backing. In years gone by, building societies had waiting lists to a obtain mortgage. Now its a matter of weeks to obtain a mortgage and there's no requirement to save with the lender.

ILW

macaque wrote: »

Fraud. Selling unsuitable financial products for commercial gain to people (many of whom are old) who do not understand them is fraud.

I have never seen that as a legal definition of fraud.

Immoral and unethical, yes.

macaque_2

Thrugelmir wrote: »

In what way not competitive?

Nice one! It generated much laughter at the 70% club.

Thrugelmir

macaque wrote: »

Nice one! It generated much laughter at the 70% club.

So do you believe retail banking is highly profitable? Compared to mobile phone companies.

macaque_2

Thrugelmir wrote: »

So do you believe retail banking is highly profitable? Compared to mobile phone companies.

This has nothing to do with profitablility. I said the banks were not competetive.