bonkers bankers

Posted: June 29, 2012 in This is the Voice of Lefty Reason

More depressing news from the “city” this week as Barclays were rumbled for manipulation of inter-bank-lending rates in order to swell their already obscene profits. Banks were once infallible; bastions of Britain, run by sensible-shoed upstanding citizens who kept a careful eye on the money and knew customers by name. You got the feeling that somewhere in the back of the branch was a room filled with shoeboxes with your name on where the cold hard cash was stored. Safety, security and perhaps a little interest to oil the finance machine. Then the Quants got a sniff of the opportunities; hugely complex mathematical formulae were developed that allowed banks to pull all sorts of dodgy deals and seemed to provide the nirvana of never ending, ever growing profits. The talk became of “products”, “vehicles” and the proliferation of TLAs (three letter acronyms). The man in the street looked on with confusion as the Masters of the Universe performed financial-alchemy and created the ultimate something for nothing culture; red braces, Bollinger, expense accounts and all. It all seemed an Emperor’s New Clothes illusion; based on nothing more than on-screen numbers and computing power. The crisis of 2009 was to result in a new era of responsible banking; lower risk, lower profits and lower bonuses. Maybe, just maybe, the bonkers-banking-thieves could be treated like criminals for once rather than a vast old boy’s network?

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s