either the government takes over the banks or it doesn't! It can't set rules for banks without thinking about how they will be abvle to do it, but hopefully it won't have to if this latest scheme works. forcing banks to lend will just see them pick the best customers (who probably are already able to borrow) which wno't help the rest of the population. the problem is bigger than banks!
Lending is the core skill of commercial banking. Experienced, trained lenders chasing an honest profit find it hard enough to get lending right - ie to get repaid, with interest - as recent market events worldwide have shown. Speaking from long experience (I'm a retired senior banker) in Africa and the Middle East, directed lending is pointless at best and calamitous at worst, as the direction comes from politicians seeking short term glory and is administered by civil servants with non- banking skill sets. Avoid!
I think that RBS should be totally Nationlised now that the Taxpayer owns most of it . All of the Executives of the Bank should be made to leave their jobs and pay back the huge bonuses that have been paid out to them. Bonuses should have been earned for the ability to run a successful business - not given because, on paper, targets have been reached (set by whom)?
All of the people in the banking industry (including Mortgage lenders) involved in causing our present situation by high risk investment should be taken to task and not be allowed to continue in their present positions, laughing at all of the people they have created heartache for. I know that people are responsible (or should be) for their own finances but the temptation has been too great and far too easy for many.
Government should stick to its knitting and just provide some incentives in the shape of perhaps sharing/helping in some way minimise risk exposure as the financiers are behaving like rabbits caught in headlights.
But the government must not pretend to be bankers by making it compulsory. This will only serve to be artificial stimulus to the economy which is where the problems started in the 1st place.
I am petrified at the thought of politicians meddling in things they don't fully understand and taking advice from faceless experts in their shadows.
Pips this is where it all started!
No way should the government be able to force the bank to lend set amounts -- surely this would mean a much higher chance of even more 'bad debt' !!!!!
I agree with cw18. We are in this mess because of speculative lending, fuelled by greed, and the prospect of obscene bonuses. Responsible bankers (presumably there are some!)have the opportunity to learn from these errors, and base future lending on a sounder basis. Giving them minimum targets is a sure way to erode their ability to exercise such judgement.
what about shar holders if nationlised ofcours not getting any money.it sooms to me you do not hold any shares in the bank.
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