The City Financial Watchdogs Join in
The Financial Services Authority supposed to be there to stop any irregularities in banks and financial sector. It costs around £500,000 a year and employs 4,000 staff. Yet, it failed the taxpayer to stop the Royal Bank Scotland, Northern Rock and Halifax Bank of Scotland heading for bankruptcy.
In spite of yet another failure to stop bankers they too demand an increase of £121million with the overall cost rising to £1.2billion a year.
Although it will be charged to the financial industry but have no fear our little bankers and financiers will find a way to pass it on to the consumer. No way can be expected that our bankers or financiers will put their hands in their pockets or charged to the banks which would reduce their bonuses.
Barclays bank already charges £10 for every amount taken out of the cash-machine.
In a 450 pages report the FSA was nothing but criticized for the collapse of the Royal Bank of Scotland and never lifted a finger to prevent it. It did not investigate the wheeling and dealing of Fred Goodwin the Chief Executive at the time yet that is precisely their job. Maybe they lost their job-description and need to be told.
Another sector is the Money Advise Service. It is supposed there to help and advise people how to get out of their debt. They too demanded a £43million increase which will then be a £86.8million yearly cost. Half of the money will be used for debt advice. The Chief executive has a yearly income of £350,000.
The Financial Services Compensation Scheme will have its funding increase by £2million and will then total £580million This body is there to protect savers if a company goes bankrupt.
The Financial Ombudsman Service will have their budget cut by £2.2million even so it is expected to have an increase of 10 per cent in their workload.
Overall the bail-out of banks cost the taxpayers over a £120billion and there financial watchdogs which cost another fortune and could not see it coming to stop them. On top of it all these bailed-out banks giving away billions of bonuses. It leaves you speechless if you think about it. Since when do you get a bonus when you made such a mess of things? Even when you do your job you will get paid your wages or salary but not bonus.
Mr Hester of the Royal Bank of Scotland will still receive around £7billion in spite of his grandiosely refusing the £1billion bonus which I don’t belief for a second. Their shares have also dropped drastically on the stock exchange. Mr Hester receives a pension of £350,000 a year. I wonder how will he be managing on this low income.
The director of Lloyds bank Truett Tate is having a £4.8million handshake in spite of the bank being bailed-out and the shares are still losing on the stock exchange.
Looking at all the money being spent or wasted the cut-back should start here. From a start the people wouldn’t be in need of a Money Service Advice if they receive the right wages or full-time employment. This money would be far better spent that way. In a round-about way would save also unemployment benefit. The people would be spending again and it would bring in taxes. Everybody knows that and see it but the government.
What is going on up there?