"Ending free bank accounts 'fair'"

PosterBoy77

CopperPlate wrote:

No I don't and have no desire to either.

Well, I think it was ill considered, and the follow-up was fairly ignorant too, but then that's just my opinion. And if you read on, and read the broadsheet press you might learn how the banks generate £7bn a year. And it ain't from 'ripping-off' poor souls like you - so perhaps you should be the one to get real, eh?

I don't think anyone is suggesting that the banks make all their profits from ripping off consumers. However, it does show that many choose to rip off consumers as every little helps.

PosterBoy77

RayWolfe wrote:

Funny old world.
We have a few, very few, world class companies who make good profits, pay lots of tax, employ lots of people, bring in lots of foriegn exchange ... and all we do is carp about it!
Do you think people in Germany, the US and Japan feel the same about their commercial sector? Get real people ... profit is not a bad thing. AND banks do not make their money from current accounts.

I think you fail to spot the difference between Germany, Japan and the UK. Germany and Japan actually make real tangible products that the world wants. Here in the UK we siphon off a bit of the money that passes through our hands. If we can convince lots of coutries to give us their cash to look after that is good for us, and profits from that are welcome. I don't think anyone begrudges the huge profits that banks may make from this. However, given that they do, it shows their greed for wanting to charge crazy fees in their retail arms.

So where is your evidence to show that banks make no profits from current accounts? Just because you tell us does not make it fact.

jinky67

Do people forget that banks are buisnesses it is their job to make money.If they didnt shareholders wouldnt be too happy.Would you be happy to run a buisness and not maximise your profit?
I dont see why people who stay within their limits should subsidise others who cant manage their money

PosterBoy77

Justamum wrote:

So they loan out money they don't have, and have the cheek to charge interest on this non-existent money?! This sounds fraudulent to me. Actually they're not really lending out money, just shifting figures around on a computer.

That is precisely what happens. If more people actually took the time to find out how our fractional reserve banking systems actually work, it would shock many.

Take a look here:

http://en.wikipedia.org/wiki/Fractional-reserve_banking

In some ways it is a total fraud and only works because most of the population know nothing about it.

Tootsie_Roll

mikael wrote:

I don't know why people harp on about this? The retail side of things still makes a profit, no matter how much smaller it may be when compared to other parts of the business. Profits would be lower without the retail business though, so it is not a cost or a lost leader.

Of course the retail side makes a profit as a whole but think about it. The vast majority of us enjoy completely free banking and even a small amount of credit interest. This is simply not possible unless it is being subsidised by the other very profitable banking activities like lending and business banking. Of course the banks use our money plus a lot more besides.

Paul_Herring

Tootsie_Roll wrote:

and even a small amount of credit interest.

As opposed to a larger amount of credit interest, which, to be fair, some of the banks are cottoning onto since they are actually giving credit interest rates above the rate of inflation instead of 0.1%. "500 times more interest than Barcwest and Natleys" springs to mind...

thumshie

Paul_Herring wrote:

As opposed to a larger amount of credit interest, which, to be fair, some of the banks are cottoning onto since they are actually giving credit interest rates above the rate of inflation instead of 0.1%. "500 times more interest than Barcwest and Natleys" springs to mind...

Think you mean 60 times.. If not can you tell me which bank..I'm transfering

Justamum

mikael wrote:

That is precisely what happens. If more people actually took the time to find out how our fractional reserve banking systems actually work, it would shock many.

Take a look here:

http://en.wikipedia.org/wiki/Fractional-reserve_banking

In some ways it is a total fraud and only works because most of the population know nothing about it.

I suppose you could, theoretically, refuse to repay a loan as they haven't loaned you anything in the first place.

oldwiring

mikael wrote:

That is precisely what happens. If more people actually took the time to find out how our fractional reserve banking systems actually work, it would shock many.

Take a look here:

http://en.wikipedia.org/wiki/Fractional-reserve_banking

In some ways it is a total fraud and only works because most of the population know nothing about it.

But generally the system works for the general benefit.Try and consider what would happen to growth, if a 100% reserve had to be held. It's all a matter of confidence and BTW I suggest going to BofE with your £20 note ans asking for £20 in gold. All you will get is another £20 note. The system works, as I said, on confidence that the note will be accepted in payment for goods and services we consume. IMO, if the system broke down, the econony woud shrink and we'd all be worse off (much).

regularsaver1

jinky67 wrote:

Do people forget that banks are buisnesses it is their job to make money.If they didnt shareholders wouldnt be too happy.Would you be happy to run a buisness and not maximise your profit?
I dont see why people who stay within their limits should subsidise others who cant manage their money

I'd be very uphappy if the share price went down as a shareholder