UK banks have given customers shoddy treatment
Customers have been getting 'shoddy treatment': The Governor of the Bank of England Sir Mervyn King very politely blasted the banking sector today as he delivered the latest financial stability report. He called for a change in the culture saying leaders had 'let down' the honest and hard-working people in the sector.
Mervyn King said "What I hope is that everyone, everyone now understands that something went very wrong with the UK banking industry and we need to put it right. That goes to both the question of the culture in the banking industry and to the structure of the banking industry, from excessive levels of compensation, to shoddy treatment of customers, to deceitful manipulation of one of the most important interest rates, and now this morning to news of yet another mis-selling scandal. We can see we need a real change in the culture of the industry, and that will require two things. One is leadership of an unusually high order and changes to the structure of the industry."
It's been a very eventful week to say the least: the FSA fining Barclays a record amount for fixing interest rates. CEO Bob Diamond admitted that decisions taken were 'wrong' but that he's not stepping down.
And now RBS is in the firing line. A former head trader claims it was a senior member of RBS staff who conspired in the fixing. Tan Chi Man's been sacked for gross misconduct, but claims he's been made a scapegoat.
Lloyds and HSBC are two more banks which are being investigated by The Financial Services Authority. It's found 'serious failings in the sale of interest rate hedging products to
28,000 small-medium sized businesses'. So Barclays, RBS and those two will now have to answer some very serious questions to the FSA as far as mis-selling is concerned. Leaving members of the general public to decide if we can still trust our banks.