The Turner Little team discusses a banking industry insider’s recent claims that the sector is on the verge of causing another economic crash.
2007/2008 crash
The failure of banks such as Halifax Bank of Scotland (HBOS) in 2007/2008 was disastrous for the UK’s economy. It caused thousands of people to lose their jobs, and UK taxpayers were forced to pay billions of pounds to bail the financial institution out.
The UK’s economy has recovered over the past few years; according to the BBC’s GDP tracker, it expanded 1.7% in 2013, and 2.6% in 2014. The UK can’t afford another banking crisis, which Paul Moore, the former Head of Group Regulatory Risk at HBOS, has recently said is now “on the horizon.”
Crash, Bank, Wallop
The Express recently reported that Moore made the claim in his new book, Crash, Bank, Wallop, which details his life at HBOS. The barrister by profession was dismissed from his post in 2005, just after he raised serious concerns about HBOS’ “relentless” sales culture, and the tactics they used to push financial products such as PPI.
Moore argued in Crash, Bank, Wallop, that HBOS hasn’t learned anything from the financial crash of 2008, and that the parties responsible have not been held accountable. The former Head of Group Regulatory Risk also claimed that vested interests are protecting the banking sector from the necessary restraints required to prevent the next “inevitable financial crisis.”
Banking system is broken
He commented: “People at all levels of society in Britain are fed up and even angry that nothing’s really changed in banking seven years after the worst financial crisis in our history. We are still suffering the consequences of it and want something done about it.”
Moore went on to say: “The majority of bankers are good and honest people and desperately want things to change so they can rebuild the reputation of their industry and be proud of their profession, but we have gone badly astray. The whole banking system is broken and needs total reform. We have to get to the bottom of what caused the crisis and what needs to be done to prevent it happening again, which it will. The fact is banking should be boring. It shouldn’t be about risk.”
Turner Little
If the UK is on the brink of another banking crash, you need to ensure that you protect your company’s capital. You may want to think about utilising offshore banking services, such as those offered by Turner Little, to ensure your firm’s continued success.
Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agents, Registered Bank Intermediaries and Business Consultants, as well as Trust providers.
