As if the latest Barclays scandal was not enough, Barclays and three other British banks are in new trouble with authorities. The political class is talking a good story, again, but we've seen it all before. There's always a lot of big talk to show the people that they're doing something though somehow the follow action never happens.
How many more times do the banks need to prove that they're untrustworthy and dangerous for society before the political class gets it? If the "three strikes and you're out" rule applied to bankers, they're all be locked up. Lucky for them, they're mostly white males with deep pockets so the rules are not the same.
More on the latest banking problem out of London via The Telegraph:
Britain’s four main high street lenders have agreed to compensate small and medium sized businesses mis-sold interest rate hedging products after the Financial Services Authority said it had found “serious failings” in the way they marketed to some customers.Today, RBS (Royal Bank of Scotland) is set to be fined for the same Libor manipulation offense as Barclays, with more banks likely to be fined soon.
Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland have all agreed to immediately halt the sale of complex interest rate hedges to smaller businesses and have pledged to compensate potentially thousands of customers who have been hurt by the products that have left some firms with hundreds of thousands and even millions in costs they say they were never warned about.
On a related note, Bloomberg is reporting that lawsuits related to the Barclays Libor manipulation settlement may end up costing more than the fines themselves. Once again, we've heard it all before so seeing is believing.