Critics of the UK’s financial sector compared the behaviour of UK banks to that “of children having tantrums.” Just this month, UK finance news report that banks pressured UK Finance Minister George Osborne in many ways through the pull-out of probes that would help prevent PPI mis-selling scale scandals and further market manipulation.
The critics said it wasn’t the only instance the UK’s finance sector pushed the UK government over.
Critics recall that during the height of the PPI crisis, Lloyds was one of the banks that delayed consumers’ PPI refunds deliberately. The Financial Conduct Authority, under Martin Wheatley during the time, imposed huge fines against the taxpayer-backed bank for their delays.
UK news reports once reported that former Financial Ombudsman Chief Natalie Ceeney during the time said that banks had “dragged their feet” to address the situation, slowing down the entire claims process.
Libor and Forex Manipulation
Critics also said the manipulation of the London Interbank Offered Rate, which served as the benchmark rates for most financing in the UK, almost threw the UK finance market into chaos. Despite the possible trillion-pound damages, they said banks got off easy as local regulators fined smaller amounts. No arrests against financial officers have been made to correct the situation as well.
Critics recalled local regulators fined banks smaller amounts for Forex rigging. They said the halting of FCA probes proves that banks are elbowing the government at all times.
Bank Levy Ignorance
UK news reports Mr Osborne had toned down his stand on his high bank levies, which he announced as part of the previous. The report shows that several banks were involved in successfully lobbying for a lower levy. The same banks, according to the report, paid no corporation tax in 2014.