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Finance Friday: Another Banking investigation?

Banks in the UK are still recovering, not only from the crash; but their own mistakes that were driven by greed. The Competition and Markets Authority (CMA) is set to recommend a full competition inquiry into the big four banks.

How many more enquiries must there be before we can trust banks? It seems the average savings for UK households is only about £3,000 and when banks do offer us products it’s likely to be the new ISA paying a miserable 1.5%. They also offer us balance transfers deals on credit cards to try to get us to take their cards and pay a whopping 19% interest on what we borrow. Then there are the pay day loan companies that are now being regulated because they rip people off.

If you won a million on the lottery, would you ask your bank for advice on how to invest it? They have robbed customers, mis-sold payment protection insurance and interest rates swaps and are still under investigation for conspiracy to defraud by manipulating LIBOR. Do you trust banks? How about those lovely Independent Financial advisors we are often told to consult? So how would you invest your million? Put it into a nice little ISA earning 1.5% on the first 15,000; less those whopping bankers fees? That 200 quid a year will help you live in the lap of luxury… Maybe you would invest it on the stock market with the help of an advisor? Who would you trust? How often has you bank offered to help you invest and make money? What are their stock market dealing fees? My banks charge at least 12.50 a trade. That’s 12.50 when you buy and another 12.50 when you sell, plus 0.5% stamp duty and the spread. You can understand why they get million pound bonuses in the City of London while the rest of the country is applying for Wonga loans and queuing at food banks.

I watched a programme on TV about the new cross city underground line for those wonderful City of London workers. It’s costing 15 billion pounds at a time when the government is cutting down on just about everything, but planning another rail line (HS2) running up north. They seem to be pandering to the London financial sector, but where do they make all that money? From us! The whole financial industry is like a parasite sucking the blood out of Britain for the benefit of Oxford and Cambridge graduates working in the City of London. The fact the Prime Minister graduated from Oxford and his deputy from Cambridge is probably not a coincidence.

What do you think? Do we need another investigation into the banks or would a investigation into the whole financial system be more appropriate? Who would we trust to investigate? You can share your thoughts in the comments box or follow me on Twitter.

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  1. Pingback: The Review: Stormy weather | Mike10613's Blog

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