The Guardian writes that the UK government has “U-turned on a pledge to toughen up the rules holding senior bankers to account”. It also wrote that the UK now has “a softer rule book that would allow regulators to prevent a possible 2008 financial crisis from happening in the future”. This also includes preventing possible PPI mis-selling, Libor and Forex rigging-scale scandals in the future.
The newspaper views the Treasury Select Committee, headed by MP Andrew Tyrie, as the last hope for changing the “greed is good” culture of UK finance.
The news network writes about the small effects of penalties against banks. It highlighted RBS’ errors in selling toxic mortgage debts that earned it more than £100m in fines from international regulators.
It also highlighted Barclays’ little regard for fines after raising money from Middle Eastern investors to avoid a taxpayer bailout. It also said that it had rigged the price of gold after it had just rigged the arcane Libor interest rates used by banks nationwide.
Fairer Finance’s James Daley writes that with regards to PPI and other banking scandals, banks continue to go “business as usual” until a bank is made an example of by regulators.
Daley also said banks have done everything in their power to avoid repaying refunds to consumers. Banks will not inform consumers possibly mis-sold PPI, leaving them to investigate on their own. Daley highlights that this is a form of delaying tactic banks employ to their favour.
The Guardian said that a hard-line approach is needed. Andrew Tyrie, who had forced former RBS Deputy Chief Executive Chris Sullivan to apologise to him, is the right person to regulate the banking culture of the United Kingdom.
The Guardian writes that where UK Chancellor George Osborne had failed to implement his promises, that is where Tyrie’s department would step in to enforce proper bank regulation and prevent a PPI-level scandal, Libor and Forex rigging in the future.