Tag: Barclays

We Bankers Said We’re Sorry — Now Buzz Off

On By southwerkIn business ethics

Alain Sherter writes a column called Financial Folly. His latest essay is entitled – Barclays CEO: We Bankers Said We’re Sorry — Now Buzz Off.

New Barclays (BCS) CEO Bob Diamond is tired of apologizing for the economic damage big banks have wrought in recent years. As he told members of Britain’s Parliament during a hearing on possible restrictions on banker pay:

“There was a period of remorse and apology for banks. I think that period is over,” Diamond told the Treasury Select Committee.

“Frankly, the biggest issue is how do we put some of the blame game behind us? There’s been apologies and remorse, now we need to build some confidence,” he added.

Seems to me Diamond, who took over last fall as chief executive at the U.K. banking giant, is skipping a step between expressing regret and rebuilding confidence. Tip of my tongue…. Ah, yes: reform. That includes restricting the kind of compensation that inclines bankers to let it roll. And since we’re nitpicking here, I don’t remember many financial executives exactly hanging their heads in shame over their role in the meltdown.

I don’t recall any real apologies or confessions of wrong doing or regret for what happened.

The general perception of the financial community is that they were profitable before the disaster, they didn’t really need the bailout and what was all the fuss about in the first place?

You may think I am exaggerating or misinformed about that my analysis of the attitude of the banking community. I truly wish I was wrong.

We have a financial class that not only can do no wrong whatever, but have no responsibility for anyone in this country at any time, under any circumstances. In their minds, they are worthy, the rest are not.

Their sense of entitlement is beyond most American’s comprehension.

If I had not heard these things said myself, I would have difficulty believing them.

James Pilant

Our Continuing Coverage – More On BRICKED Bank!

On By southwerkIn business ethics, Capitalism, ethics, Philosophy of Business2 Comments

Cameron Hope organized the bricking and had this to say. –

‘We blocked the doorway as a way of saying that the banks are open but the safe is shut.

‘The banks are stifling the recovery from the recession by not lending businesses any money.

‘Savers are getting nothing, borrowers are getting nothing and the banks are doing whatever they like. Some of the banks are even owned by the taxpayer and still they won’t lend.

‘This protest is saying enough is enough and the Government needs to step in and make the banks lend.’

The Daily Mail’s Make the Banks Lend campaign, on behalf of small firms turned down for credit, argues that the banks have money to spare, thanks to enormous funds provided by the taxpayer.

Instead of lavishing this cash on bankers’ bonuses, banks should be lending it at affordable rates to small enterprises – the backbone of the economy. Small and medium concerns provide 57% of all private sector jobs.

It is clever protest that is getting headlines around the world. However, Barclays Bank was not the original target. The protesters were unable to brick up the offending bank. So they picked another bank conveniently located. Press reports indicate that Barclays has a good reputation for continuing to give out small business loans.

If you read this column, you know I’m no shill for the banks. The offending bank was actually “Natwest.” If you want to deny them business, please do, but Barclays did not deny this businessman and his friends a loan.

(One of my clever readers, M. Perry, adds a helpful comment. –
Nat West was the original target to be bricked up because of its location in the centre of Bournemouth. HOWEVER, HSBC was in fact the bank that refused the loan, jeopardising Mr Hope’s business.)

James Pilant