Banks dont have enough capital

mertle · 24-03-2012, 22:35

http://www.independent.co.uk/news/bu...l-7584048.html

This not looking good so are we going to see another bailout. Can the country afford to bailout again been one of the debts we trying to reclaim by cutting so how can.

How short are the banks to balancing its books

Quote:

The billions in capital that Britain's banks have raised to bolster their balance sheets in recent years is still not enough, the Bank of England's Financial Policy Committee said yesterday.
The risk watchdog at the heart of the Bank of England, in one of its first public remarks, said the industry should raise more money "as early as feasible", a stark warning that will do little to ease the fears of investors or consumers.

Stark warnings here personally they got them selves to blame with years of wanton bonus culture. Can we allow another banking crisis hit us thats the big issue.

Will coalition bailout or LET them die barcleys, lloyds go under as they still deeply in trouble.

Quote:

The FPC said banks had gone as far as they could to raise capital by keeping down pay, dividends and share buybacks. "But," it added, "the committee remained concerned that capital was not yet at levels that would ensure resilience in the face of prospective risks. It therefore advised banks to raise external capital as early as feasible."

24-03-2012, 22:42

cue a sharp rise in bank charges and an end to free banking

mertle · 24-03-2012, 22:53

Quote:

Originally Posted by martyh

cue a sharp rise in bank charges and an end to free banking

Probably

but will it be enough would it be very wise move. You might in that case see where wages paid in cash back. Those on smallish incomes no longer using banks.

The question is should regulations be introduced for tighter controls on wages and bonuses.

The end to the big pay?

Sirius · 25-03-2012, 08:31

[QUOTE=mertle;35405004

The end to the big pay?[/QUOTE]

Cannot see that as those on big pay packets set the rules

mertle · 25-03-2012, 09:44

Quote:

Originally Posted by Sirius

Cannot see that as those on big pay packets set the rules

true but if they go cap in hand back to government we should set more rules.

I am really scared how all this could end. I wonder if there will end up massive investigation at how banks been run. Years miss-management caught banking sector up.

Not suprised they struggling to get investors.

Could this impact on the governments recent policies

Like the housing the 95% mortage lending which is frightening dangerous what got banks in mess risky lending. Lending money to business.

Taf · 25-03-2012, 12:57

Banks exist to borrow money at one rate of interest then loan it out at a higher rate, taking a slice of the profits.

Since they are offering such a minimal return to those they wish to borrow from, they are not attracting much income at all.

Be fair to the depositors/savers and maybe they'll start investing again!

nomadking · 25-03-2012, 13:14

Part of the reason for the the low saver rates is that they can't invest/lend 100% of the money, because they have to hold some of it as capital. Then any losses from people/businesses/countries(eg Greece) defaulting have to be absorbed somehow.

Chrysalis · 26-03-2012, 09:52

Quote:

Originally Posted by martyh

cue a sharp rise in bank charges and an end to free banking

what free banking?

My bank even started charging for pre approved overdrafts now.

26-03-2012, 09:57

Quote:

Originally Posted by Chrysalis

what free banking?

My bank even started charging for pre approved overdrafts now.

Natwest ?? .Banking generally remains free for basic accounts with no overdrafts ect ,i can see that disapearing soon

mertle · 26-03-2012, 10:04

Just thought would this tie in with the news posted about cashpoint charges.

Chrysalis · 26-03-2012, 10:08

Quote:

Originally Posted by martyh

Natwest ?? .Banking generally remains free for basic accounts with no overdrafts ect ,i can see that disapearing soon

no the bank is lloyds, I also found out they have scrapped full statements from ATM's also. As well as able to make deposit's via ATM's as well.

So cuts in service alongside more fees.

Banking only remains free in your scenario if the account holder doesnt have any bounced direct debits. I wonder what % of accounts have fees, of any sort, I expect its significant.