Laugh Or Cry?

Accountants KPMG have announced in their recent report that Britain's largest banks have paid 60% of their profits since 2011 in fines and repayments to customers. The total fines in the last 4 years has risen to £39 billion.

 

On the one hand……

 

Banks making profits is clearly good for the economy as we need them to be cash rich to lend cheaply to ignite growth. Let’s be honest……none of the political parties can be trusted to stimulate growth so the reliance on the banks to do it is greater than ever.

 

Equally, the regulator doing their job is commendable as the banking crises and collapse was during a prolonged period of light touch regulation. A little late but very welcome.

 

On the other hand……

 

What on earth have the banks been permitted to get away with in the past? The new regulator is clearly a far tougher beast than the previous lame effort and I am starting to question how far back we need to go? How many stones need to be turned over? Has only the surface been scratched?

 

When the chief of HSBC openly states that he “cannot guarantee there won’t be more fines”, I wonder in bewilderment at what can of worms we encounter around the corner.

 

Very sad. Very avoidable.