Have Britain's Banks Come Good?

THE WEEK: In the past, banks had little concern for customers or shareholders as long as they were making money, but things are beginning to change

Rodney Hobson 1 November, 2013 | 10:16AM
Facebook Twitter LinkedIn

If you say something often enough it will surely be true one day. I have thought that banking had finally turned the corner on so many occasions that I hardly dares to say it, but… I think banking may have finally turned the corner.

As Nick Leeson exposed when he drove Barings to bankruptcy, the people in charge of banks had little concern for, or knowledge of, what was going on lower down as long as the activities were making lots of money. That was compounded by the proliferation of compliance departments that have, perversely, conspired to produce practices ranging from bad form to downright fraud.

Each time it looked as if the banks had finally come clean, another misdemeanour has crawled out from under the counter and the banks continue to pay back what they wrongly took. There is now genuine hope that the process is coming to an end, although it is by no means over, with the possible manipulation of foreign exchange rates emerging this week.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Barclays PLC178.58 GBX1.26Rating
GETECH Group PLC21.00 GBX-2.78
Lloyds Banking Group PLC47.31 GBX0.97Rating
NatWest Group PLC209.64 GBX1.08Rating

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

Audience Confirmation

By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies       Modern Slavery Statement