There’s just no pleasing some when it comes to banking

Business banking news review: week ending 25 July 2013

Seems like nobody’s happy nowadays when it comes to the nation’s banks, judging how the news of the past week has been rife with anger and resentment.

First off, Royal Bank of Scotland has once more found itself in hot water after it was fined a massive  £5.6 million by the Financial Conduct Authority. What was the sin committed by RBS this time? Well, apparently they forgot to properly report more than one out of every three investment banking deals it made over more than half a decade, that’s all – nothing serious, right?

Seems like RBS just can’t win, can it? Honestly I don’t know why anyone would keep a savings account or current account with these jokers, at least not after all the stupidity and bad press they’ve been getting for what seems to be non-stop; why just before the FCA threw the book at the bank, it was made known that the one man who was one of the front-runners for the job of chief executive, Mark McCombe, said that he wouldn’t be taking the job – and honestly I can’t say I blame him.

Can you believe nearly 45 million transactions were improperly reported over the years? To make it worse more than 800,000 weren’t even reported in the first place! I’d be absolutely livid if I was a regulator as well.

Speaking of livid, the Business Secretary has had nothing but the harshest of criticism for the Bank of England this week. I think his temper might have gotten the best of him because Vince Cable actually likened the BoE to the Taliban by saying the UK economic recovery is being held back by the Bank’s incredibly Draconic rules.

The Bank of England is building so much of a focus on requiring banks to keep large amounts of working capital in reserve in order to stave off another credit crunch that started the global economic downturn that there’s not enough money to go around when it comes to lending it out to small businesses, Mr Cable said. It seems that another Treasury worker – someone whose name hasn’t been made public, fancy that – called the BoE’s attitude ‘jihadist’ by how harshly they’re treating high street lenders.

While I can see Mr Cable’s point, he’s not exactly going about things the right way, isn’t he? You can’t just go around tossing around words like jihadist and Taliban without facing the consequences – and you can’t compare a country’s central bank to a theocratic regime that relies on terror, violence, and murder to get their point across. That’s just bad cricket.

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