There was a time when your local bank manager was a respected member of the community and was trusted by everyone. Has this reputation now been tarnished beyond repair and can you trust your bank manager (if you actually have one or actually know who they are) or even your bank anymore?
For years the banks have been charging people for going over the overdraft limits, even when in many situations it was these very charges that was making people go over their overdraft limits. Then came the mis-selling of Payment Protection Insurance (PPI), which was mis-sold to millions of people and has meant the banks putting billions of pounds to one side to cover the refunds due to people.
Now the banks have been found to have been mis-selling loan insurance to businesses and have put even more money to one side to compensate the businesses that have been affected. So what could be possibly be next? What did come was even more amazing than anyone could have ever predicted, one of the major banks has been found to have been fixing interest rates on the amounts they borrow and lend to make their own profits higher. It is highly expected that this bank was not alone in this action and it will probably be found that many, if not all, of the other banks were involved in fixing interest rates and making even more profit when they should not have been.
Take for example the plight of Greece. Share prices slumped across Europe on Monday as Greece shuttered its banks for a week following a fateful weekend that has shaken Europe’s single currency.
The Greek government decided on Sunday night it had no option but to close the nation’s banks the following day after the European Central Bank (ECB) raised the stakes by freezing the liquidity lifeline that has kept them afloat during a six-month run on deposits. The banks were closed for several days and frantic customers were left to withdraw the maximum daily balances from ATM machines in an attempt to salvage what they could.
Think it can’t happen here? I wonder if the people of Iceland, Greece, Ireland, Hungary, Argentina, Spain, and Portugal thought that too.