July 22, 2015

We’re All Fed Up With The Investment Banking Part

Category: Opinions — Dave @ 2:39 am

Chancellor George Osborne definitely means business this time. Not backing down on his plans to separate retail banking from investment banking operations, I have to agree that it will make banks lots safer.

We could all recall how our own banks mis sold insurance policies on us and how they rigged several rates for their own capital gain. No, it’s not yet enough punishment that they pay billions of pounds for their atrocities. And no, it’s not yet enough they also suffer some strict new policies from regulators too.

Recently, Mr. Osborne increased bank levies by 8%, driving away plenty of the banking industry to the idea of moving out from Britain. While many said it would push up costs for customers especially for services, I don’t mind.

I’m quite fed up with the investment banking part. Banks are now ringfencing, giving them a huge selection of options should things go awry. Meanwhile, challenger banks, or newbie banks, are quite angered towards the higher bank levies.

Levies were designed to balance the “playing field” between established and challenger banks. Mr. Osborne just said that “you have to tax banking institutions as banking institutions.”