“It seems to be that every big trading disaster happens in London”. AIG, the London Whale, Lehman’s, the list goes on. Add Barclays Liebor to that too.

[dikkertjedap]

said Carolyn Maloney, New York Democrat congresswoman.

See here about how Barclays manipulated LIBOR and EURIBOR. What an utter disgrace!

I really hope this government is finally going to see sense and will finally get tough with these bloodsuckers. Are these the people who have to get the UK out of the economic straits, you cry or laugh.

They will only be fined. There is not a chance that there will be any real backlash. After all, these guys are awfully talented and our banking/financial industry would be much the poorer without them - apparently.

Personally, I'd much rather have a rather 2nd rate industry run by people who may be talentless but are honest. Not going to happen.

They've all had years worth of bonuses. Mr Diamond has forgone his now, but hey, probably 1000 families could live on the bonus he got last year, so I'm sure he'll be OK without one this year. Perhaps cut down the cleaner's hours a bit, and he'll manage.

Dream on Dikker.
Unfortunately for the rest of the planet, the players are never going to allow a moral particule to come between them and profit, or added profit.

Nothing, let alone a mere government, could get those gits off the saddle.
They control the game and the rules are that they cannot lose. Any spectacular failure and disgrace is another player's gain.

K Maloney's comment : talk about the pan calling the kettle black....

Let's not forget the head of Barclays is Bob Diamond, the man who told us 'it's time for bankers to stop apologising'. Yeah, and get back to normal business - lying, cheating, breaking the law and generally being corrupt.

(Maloney, of course, is trying to deflect attention from wrong-doing in the US. And it's not just Barclays - lots of other international banks are being investigated including our own dear RBS.)

Until bankers start swinging from lamp posts then nothing will change.

We can dream, doesbuggerall...

(I actually have a friend who works at Goldman's. He's lovely. But I'd still close the place down.)

This morning on the news, Lord Oakshot (sp) has called for Bob Diamond's resignation and Lord Myner has said that those responsible should face prison.

Do you think this will really happen?

I really hope so ...

It's fraud. The heads of the banks involved should resign and there should be criminal prosecutions. The FSA should be included in the investigations because they appear to have been sleeping on the job. The procedure for setting these rates seems to be far too haphazard and open to abuse.... so that has to change. I think root and branch is the only way to get public & international confidence back in the banking system

She would say that wouldn't she, as she would like the financial jobs to move back to NYC. In fact a lot of the actions don't happen in London, eg. Lehman's. But The City or London is often used as shorthand to describe the actions of banks and other financial institutions which happen all over the world.

If we shut all the Banks then there is a lot of empty real estate in London, the Bankers move somewhere else, and lots of ordinary people lose their jobs (shops, cafes, bars etc. close and so on).

But yes Shareholder power should be strengthened eg. That recent rejection of a CEOs bonus package, or those vaguely smart ones who are turning down ridiculous bonuses. Maybe one day good bosses won't be replaced by idiots, as happened by one financial institution DH worked for (the idiot recently resigned).

It is fraud and should be treated as such.

The govt are colluding with them in many ways as they seem to be hellbent on keeping the asset bubble and all their policies reflect that so I doubt ay real action will be taken

Dds banks causing fear and financial problems for years.

I don't agree mummytime, to me it seems a lot is really going on here in London. That doesn't mean these things don't happen at all in other places, but whenever something is going on in banking, you can bet your boots that London based banks are involved. There is no morality in banking here, they seem to think that they are above the law, it is absolutely outrageous. No point defending this.

To talk about strengthening share holder power is just a lame duck. There are much bigger issues at stake here. This is about the type of people who work in these banks. People who think that normal behavioural standards don't apply to them. People who seem to think that they are entitled to whatever they fancy.

The UK banking system should really finally be reformed. Total split between investment banking (casino banking as it was called on the news) and retail banking. Limits to bonuses. Bring bankers back to the normal world, they are not special, they are ordinary people and not even particularly clever given all the havoc they cause.

It is fraud, and Diamond should go, but the congresswoman was wrong, this happened worldwide.

Makes you think how pensioners who have seen their pensions totally erode feel today ...

I get sick and tired of the big banks. We still have to see how widespread this has been and which banks were involved. Bunch of crooks and we all end up paying for it. What a legacy they have left for future generations.

On BBC4 it is now said that there is 'systemic dishonesty' couple this with huge incompetence as we have seen from our friend Stephen Hester, then you can not have much faith in the financial sector being the engine of growth in the UK.

I hope parliament starts focusing on other sectors to get the UK going and starts reducing the focus on finance.

The reason this is happening is due to the people who run the banks and their personality types, narcacissistic sociological wankers.

Now we know why RBS IT systems were down so long

Most BANKS are based in London, unless they are very small local ones. Some seem to be even though they have pretty much moved out eg. Standard Chartered.

no most banks aren't based in London. We have HSBC (sort of), Barclays, Lloyds, RBS etc. But all the other big ones are basically US banks.

Sadly it does seem to be that a lot of this emanates from London. Even British politicians are saying that.

I work in financial services and I can't imagine how the big banks allow this stuff to happen. Compliance and thinking about conflicts is absolutely central to our work - I don't know why it isn't at Barclays, Goldmans etc. I'd love to look at their conflicts register - presume it's empty.

Yes Dikker; a split between retail and investment banking, would seem the sensible and simple way to insure some fairness for the average bank customer.
Why isn't it implemented?

Because the present system works perfectly;

1/ They need all the little customers money (to fulfill the requirements of official financial boddies) to be let on he gravy train;
2/ They need the garanties our deposits/debts give them to attract big customers ie. investors;
3/ They need us on the front line to sponge off losses. Ultimately, the banks are the last to lose money, and the first to make some again.
4/ Why would the banks compromise the "share the losses, keep the profits" principle? (more like off load all losses, in practice)

So, if there was a split between retail and investment banking, it would mean the investment part of the banks would be out there on their own, in the big nasty world! Owning their investments! Responsible for their own commitments!
Risking the bank's money! That would be unacceptable, you see.
The only money worth risking is yours and mine.

I think that the banks allow it to happen because the people running them are so arrogant, even Diamond seems to have chosen his own punishment...'Mr Diamond, and three of the bank?s senior managers including finance director Chris Lucas, said they would not take bonuses this year as a result of the regulator’s findings.' The arrogance!!! In what other position do you, as an employee, get to choose the outcome of a breach of compliance/act of dishonesty?

I worked in FS during the period of time that this was going on (for one of the banks who are now being investigated for behaving in the same way as Barclays), one of my staff nearly lost her job because of a breech of procedure, what she did was nothing compared to what these members of senior management were doing at the same time. What a joke!

As for compliance, risk and conflicts, it only applies up to a certain level in my opinion, higher than that and it is just disregarded. When I was working at the bank the results of compliance and risk assessments were manipulated to ensure sales targets could still be met and costs reduced, it was all lip service to the FSA.

I am not surprised about Barclays behaviour at all. I though more people with mortgages/loans would be outraged though?

In what other position do you, as an employee, get to choose the outcome of a breach of compliance/act of dishonesty?

absolutely right.

Mr Diamond was saying a few months ago that it was time for the banks to stop having to apologise...I think they can stop apologising when they stop doing things wrong.

I am pissing myself laughing at the Americans telling the Brits they need to sort their financial services regulation out...........

Richman : yeah, hello?... the cheek!

Didn't Barclays buy Lehmans? Was that before or after Lehmans went bust?

I remember the apologists for the banks claiming Barclays was a shining example of competence and its employees deserved multi-million pound bonuses despite the crisis because they hadn't been bailed out by the British taxpayer (although they have, of course, as have all banks via quantitative easing and the taxpayer guarantee). And yet they were up to this shit.

There has been scandal after scandal, mis-selling spree after mis-selling spree, the collapse of the world economy and still the beggars continue. Something needs to change - people need to be held to account and the system needs radical reform.