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  1. #1

    Default Solutions to so called too big to fail

    http://www.bbc.co.uk/news/business-18612279

    The 59 million fine apparently is unlikely to result in a business or organisational culture change, commentators in the UK have said that fines, when they are affordable, and they always will be affordable because economies are dependent upon banks, then they just become an additional business cost.

    So, how to regulate them if this doesnt work, well, its clear that ethics or corporate social responsibility training and orientation are a total failure, the rewards for corruption and crime are just too collosally big for have anything other than a character shaping effect upon the people going into this field (it wouldnt corrupt me but I dont think I'm the sort of person who works in finance).

    There is the suggestion that imprisonment could be a disincentive, I dont believe so, its already the case that individuals will serve sentences and accept frame ups for drug deals or other crimes in the UK because they are offered "financial settlements" by the real Godfathers which are on a par with what they would earn for each year of their sentence. I could see something similar being worked out by the banks, they're no better than gangsters at this point anyway.

    The one thing which I think hasnt been talked about and should be obvious from the whole "too big to fail" story is that the banks need to be smaller, they need to be forced to restructure or to be broken up so that if any bank is found to be acting like this then it can be folded, closed for business and the other banks told not to hire any of the crooks involved in its dealings and business carries on as usual.

  2. #2
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    Well there is one obvious solution every time you need to save a corporation it gets nationalized. And if you want to prevent this from happening then you open up a bank and run it properly. I am a member in an cooperative bank with 30 000 members. We have no interest on loans up to 750 000 SEK (75 000 euro) But there are demands on repayment and savings. So you have to save an certain amount of money every month and pay of a set amount each month. But no interest at all just a small membership fee that we pay yearly. You can borrow more if you put in more savings or if you have saved money in the bank beforehand.

    Our cover rate on loans are 20% well above the 8% lowest legal limit. And we get free education on how to run an cooperative economy.

    Other then doing that the state could start a bank or even nationalize the whole banking system. Not only would that create incentive to not fail cause then its the state/members that has to pay it would make the potential earnings go to the people. However I think banks shoulden't earn money.
    "Im right here, Deal with me!"

  3. #3

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    Quote Originally Posted by Myrtle View Post
    Well there is one obvious solution every time you need to save a corporation it gets nationalized. And if you want to prevent this from happening then you open up a bank and run it properly. I am a member in an cooperative bank with 30 000 members. We have no interest on loans up to 750 000 SEK (75 000 euro) But there are demands on repayment and savings. So you have to save an certain amount of money every month and pay of a set amount each month. But no interest at all just a small membership fee that we pay yearly. You can borrow more if you put in more savings or if you have saved money in the bank beforehand.

    Our cover rate on loans are 20% well above the 8% lowest legal limit. And we get free education on how to run an cooperative economy.

    Other then doing that the state could start a bank or even nationalize the whole banking system. Not only would that create incentive to not fail cause then its the state/members that has to pay it would make the potential earnings go to the people. However I think banks shoulden't earn money.
    You're talking about credit unions or mutual associations, they used to be called poor mans banks or banking but high street mega banking has come to monopolise finance and the economy depends on finance. Especially in the UK where it consists of little else, at least little else of political capital anyway.

    The state has virtually nationalised the banks as is, it has achieved nothing other than a massive expense to the taxpayer and made other sorts of public spending impossible for a couple of generations, it really has tied the hands of government, the money which could be building schools, hospitals, providing tuition fees for students at universities etc. is being used to provide bankers with pay rises and bonuses, ie keeping them in the condition to which they have become accustomed.

    When previously the central bank, the bank of england, was controlled by government the party in power, usually the conservatives, politically manipulated finance to incentivise people to vote for them and this was bad for the economy.

  4. #4
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    Quote Originally Posted by Lark View Post
    You're talking about credit unions or mutual associations, they used to be called poor mans banks or banking but high street mega banking has come to monopolise finance and the economy depends on finance. Especially in the UK where it consists of little else, at least little else of political capital anyway.

    The state has virtually nationalised the banks as is, it has achieved nothing other than a massive expense to the taxpayer and made other sorts of public spending impossible for a couple of generations, it really has tied the hands of government, the money which could be building schools, hospitals, providing tuition fees for students at universities etc. is being used to provide bankers with pay rises and bonuses, ie keeping them in the condition to which they have become accustomed.

    When previously the central bank, the bank of england, was controlled by government the party in power, usually the conservatives, politically manipulated finance to incentivise people to vote for them and this was bad for the economy.
    Yeah well whatever you call them there still around and there the best alternative for a healthy economy.

    I'm not really well read on the economic situation in Ireland so I cant say much here except ", the money which could be building schools, hospitals, providing tuition fees for students at universities etc. is being used to provide bankers with pay rises and bonuses, ie keeping them in the condition to which they have become accustomed. " this seems to be a serious problem of democracy and not banking. If its nationalized that should basically mean that the Public opinion is to rule how its run and I seriosly doubt this is what your fellow countrymen want.

    The last section seems to like a democracy problem.

    What should be done here if the bank is nationalized already is to start a civil review union. And start criticizing and demonstrate every time the fuck up. if they don't listen then then try to get as many people as possible to withdraw their money from the bank.
    "Im right here, Deal with me!"

  5. #5

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    Quote Originally Posted by Myrtle View Post
    Yeah well whatever you call them there still around and there the best alternative for a healthy economy.

    I'm not really well read on the economic situation in Ireland so I cant say much here except ", the money which could be building schools, hospitals, providing tuition fees for students at universities etc. is being used to provide bankers with pay rises and bonuses, ie keeping them in the condition to which they have become accustomed. " this seems to be a serious problem of democracy and not banking. If its nationalized that should basically mean that the Public opinion is to rule how its run and I seriosly doubt this is what your fellow countrymen want.

    The last section seems to like a democracy problem.

    What should be done here if the bank is nationalized already is to start a civil review union. And start criticizing and demonstrate every time the fuck up. if they don't listen then then try to get as many people as possible to withdraw their money from the bank.
    I'm from Northern Ireland, I was talking about the UK.

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