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thomas davison

'Something went very wrong with UK banking and we need to put it right': Bank of England boss King launches stinging attack on top banks but rejects calls for Leveson-style inquiryHe slams 'excessive levels of compensation', 'shoddy customer treatment' and 'deceitful manipulation'
He says staff have been 'let down' and banks need 'leadership of an unusually high order'
But says no need for Leveson-style inquiry

The comments come as a fresh mis-selling scandal added to anger surrounding Barclays' rate-rigging
By James White
PUBLISHED: 14:25, 29 June 2012 | UPDATED: 15:43, 29 June 2012

Attack: Mervyn King called for a cultural change in British banking when he spoke today (pictured)
Bank of England governor Sir Mervyn King launched a stinging attack on British banks today and called for a 'real change in culture' as lenders became further embroiled in controversy.
But Sir Mervyn said there was no need for a Leveson-style inquiry, although he admitted 'something went very wrong with the UK banking industry and we need to put it right'.
The governor's comments came as a fresh mis-selling scandal involving complex financial products added to the anger surrounding the rate-rigging affair uncovered at Barclays earlier in the week.

Taxpayer-backed Royal Bank of Scotland also confirmed it was being investigated for manipulating the rates at which banks lend to each other, known as Libor.
Sir Mervyn said: 'From excessive levels of compensation, to shoddy treatment of customers, to a deceitful manipulation of one of the most important interest rates and now news of yet another mis-selling scandal we can see we need a real change in the culture of the industry.'
He added that hard-working bank staff have been 'let down' and that banks now needed 'leadership of an unusually high order'.
The Financial Services Authority (FSA) revealed earlier that Barclays, HSBC, Royal Bank of Scotland and Lloyds Banking Group had agreed to pay compensation to customers who were mis-sold interest-rate hedging products.
More...Now RBS chief executive forgoes bonus as his bank faces �150m fine for interest rate fix and trader claims bosses KNEW
Britain's biggest banks face thousands of compensation claims in fresh scandal over mis-selling 28,000 financial products to small businesses
I won't go, says Bob Diamond despite calls from Prime Minister for him to resign over market-rigging scandal

Some 28,000 of the products have been sold since 2001 and may have been offered as protection - or to act as a hedge - against a rise in interest rates without the customer fully grasping the downside risks.

Martin Wheatley, managing director of the FSA's conduct business unit, said: 'For many small businesses this has been a difficult and distressing experience with many people's livelihoods affected.'
Scandal: Barclays boss Bob Diamond will forgo his bonus after the bank was hit with a record fine over market rigging
The findings come after Barclays was fined �290 million by UK and US regulators for manipulating the rate at which banks lend to each other, and echoes the costly payment protection insurance (PPI) mis-selling scandal that emerged last year.
Banks are facing the threat of a criminal investigation over fixing the interbank lending figures that affect millions of homeowners and small firms.

The Treasury has started to look at strengthening criminal sanctions for those responsible for market abuse after the FSA exposed the dealings at Barclays on Wednesday.

Under the spotlight: HSBC and taxpayer-backed Royal Bank of Scotland are among several other lenders being investigated by the City watchdog
Serious Fraud Office investigators are in talks with the regulator over the scandal, while pressure is mounting on Barclays chief executive Bob Diamond to stand down.

Prime Minister David Cameron said it was very important that accountability for what went on 'goes all the way to the top of that organisation' and that Mr Diamond had 'some serious questions to answer'.
'Heavy price': TUC General Secretary Brendan Barber said Britain's banking system was 'out of control'
HSBC and taxpayer-backed Royal Bank of Scotland are among several other lenders being investigated by the City watchdog for trying to influence Libor - London interbank offered rate - and Euribor interbank lending rates to boost their profits.

Sir Mervyn said there needed to be a change in the way Libor was calculated based on 'observations of actual market transactions' rather than getting banks to supply rates.
'The idea that my word is my Libor is dead,' he added.

He also backed proposals to ringfence retail banking divisions from investment arms as a way of addressing some of the issues that have emerged from the most recent developments.

TUC General Secretary Brendan Barber said Britain's banking system was 'out of control'.
He said: 'We are now paying a heavy price for the decades when banks and finance persuaded politicians that they were the new engines of growth.'
Shadow chancellor Ed Balls disagreed with the Bank Governor and said there was a case for an inquiry into the culture of banking.

He said: 'We can't just brush this under the carpet. People are shocked by the swaggering arrogance of what we have discovered in the last 24 hours. We need to open this wide

The banks have crippled many of the worlds economies - and they're still allowed to receive bailouts, QE and in too many cases be (seemingly) exempt from prosecution. Governments are equally culpable - we are facing austerity, job cuts, redundancy and a bleak future..................while Governments STILL bail these institutions out. They're a major reason that our finances are in such a mess - yet Politicians still cater to their every whim......................while Politicians attack easy tagets through spin, lies and legal changes - whether that's the elderly, the sick and disabled or any of our public services. The argument that banks 'contribute' to society has long been exposed as a lie - they've conned us, ripped us off, contributed to unrealistic house prices (rent or mortgage) through cheap credit, and essentially ruined many peoples lives.

We would open a government bank which would include an insurance division, properly run on low interest rates, all profit would go to the country.
This would in one fell swoop would take away the hold the banks have on our economy and our life, make more money available to businesses and stop Q.E. which is another word for theft.
If the banks then get into difficulties they and there share holders will just have to go to the wall, of dear how sad no more million pound bonuses while we starve.