The banking industry

By Jason Moore JUST what has happened to the banking industry? Perhaps it is a rather sweeping comment but I find it quite amazing how a bank needs to be bailed to the tune of 25 billion pounds of taxpayers money and then another bank has a slight problem with a member of staff and it costs them about five billion euros! The Northern Rock episode is particularly disgraceful and it is now effectively owned by the taxpayer. Now, I know the circumstances are different but 25 billion pounds is a lot of money and with that sort of cash injection from the taxpayer many top British companies - including MG Rover and some leading shipbuilders - would still be in business but that is another story! What has happened in France clearly underlines again that the banking industry is vulnerable. I would have thought that after the Barings and Nick Leeson incident more controls would have been in place. Which brings me to Nick Lesson who does appear to enjoy some sort of cult status. Let us not forget that he was responsible for the downfall of a major British bank and was given a hefty prison sentence. The banking industry makes big profits and perhaps they should look after themselves rather than having to rely on the taxpayer. The last few months have not been a good time for the banking industry and there appears to be more bad news on the horizon. I know it is already seriously regulated but perhaps more regulation is needed. It is clear that some banks have been lending money to people who didn´t have the means to repay it. The time has come for a swift change.