UPDATE: 10 March 2014 -- It looks doubtful re-regulation will happen under Mark Carney the new head of the Bank of England. He seems to be very much on the side of the Tories. Although he should not be involving himself in politics and stay neutral.
It is regretful Mr King did not see it through before he retired. It needs to be done to stop the banks paying out 200 per cent bonuses. The major profit, according to newspapers' reports, comes from cancelling major loans and then re-issue them which is again a fiddle and costs the economy billions of pounds. For the Government to trumpet about to bring down the deficit is the biggest, sickest joke of them all.
UPDATE: 10 October 2013 - Mr King had plans to return to regulate the banks again which stop a lot of fiddles and sky-high bonuses. However, Mr King has retired and the question is will the new head of the Bank of England honour Mr King's intention?
It seems that at long last some powerful officials are waking up to the mismanagement of banks for the last five years. It took them far too long and the damage it caused is far too costly. Ever since the de-regulation made by Margaret Thatcher; the banking system was going down and into a shamble. Before, the banks of England had the highest respect and were the envy of the world.
The non-stop scandals of sky high salaries, bonuses and dividends while the bank was showing a loss were incredible. Now as a final straw came the revelation of the Libor scandal. Of course, the Barclays bank is not the only one and it is known that most of the major banks were involved. The question of why the Bank of England and the Financial Service Authority never seen it straight away will most properly never be answered. The FSA did not take any notice of rumours about rigging. Wheatley review into Libor rigging should consider classifying manipulation as market abuse and making it a criminal offence.
A well known columnists stated months ago that these boys should not only be forced out and most properly with a billions of pound golden hand shake which certainly wouldn’t give the right message but they should be in prison and no golden hand shake. What they done is criminal.
Yet, when the Bank of England Governor Sir Mervyn King forced Mr Diamond out of Barclays bank he was heavily criticised by a powerful committee of MPs. Mr King demanded to take on more powers and is again criticised by the Commons Treasury Committee stating it would be a return to the days where an “all-powerful” Governor could sack top bankers. Something has to be done and urgently and if a Governor goes power mad it is still better then the mess under which the bank operates today. The mismanagement had certainly had a great bearing on Britain’s economic crises and banks and City are hoodwinking the public.
The Treasury Select Committee, chairman Andrew Tyrie stated: “Urgent improvements, both to the way the banks are run and the way they are regulated is needed if public and marketing confidence is to be restored.”
Good regulation is needed and has to be build on clear-cut rules and transparency. Whether this will ever come about is hopeful but doubtful. There are too many greedy fingers in banks, city and government who all shared the spoil and they won’t let go that easily if at all.
It is still a secret club where with a number of nudges and winks over a cigar and brandy makes their power rule and the profit fall in their pocket. It had been whispered that banks withdraw credits from companies and set-it-up again and this would show as new business which means bonuses for the bankers. Whether it is true remains to be seen which will never be but it is plausible.
All these double-dealings contribute to high income for a few but brings the economy down which evidence showed over the last few years but didn’t seem to bother the ones responsible.