The Banking community – it’s getting to be a bad habit

The Banking community – it’s getting to be a bad habit

Last week we witnessed the fiasco brought about by the outsourcing of IT systems to the sub-continent. The rationale being the cost savings.

The damage caused by last week’s collapse in online banking services of RBS/Nat West is incalculable.

There is little comfort to had from the Governor of the Bank of England calling for a full investigation. Even the most casual observer could identify the cause – forget about providing an efficient service the mantra is cut costs by all means possible.

Now we find the Banks embroiled in yet another fiasco namely the rigging of LIBOR rates. This action is both morally indefensible with the added element of illegality yet still the Banking community behave with a staggering arrogance towards their Shareholders (in the case of some UK institutions the Tax Payer) and their Customers alike.

The level of managerial incompetence demonstrated by these self styled “Masters of the Universe” beggars belief.

It is small wonder that we find ourselves again staring into the abyss.

To an outsider it appears that despite all the rhetoric, nothing has been learnt and little has changed. The only calculations which are being rigorously scrutinised by the Bank’s management are the size of their forthcoming bonus payments.

It is one of the great ironies that is that despite all the evidence of their incompetence and sheer recklessness we once again find ourselves in thrall to the very architects of the global financial disaster – the Bankers.

In the words of Henry Ford “If people understood the banking system they would revolt”.