Banks and their balance sheets...

[Power Lunch Club]

It's becoming pretty obvious that even after capital injections and massive guarantee's from the governments around the world banks are still not lending to individual and business. The "real ecomony" as the saying goes.

What is somewhat obvious is that they are possibly trying to build up their own balance sheets.

How much longer can they do that for....or will should governments step in further?

I mean, since we (or the governments) own them, should there be pressure upon them to turn on the taps and get the flow of money going in the systems?

Even the rate at which banks lend to each other apparently has not come down, (Radio 4 programme on Friday) so they still don't trust each other.

 

[anned]

The Banks are all rebuilding their capital. Started writing a long piece all about bank solvency ratios (used to be a BAnks analyst),but decided to delete it as you would all be bored to death. Suffice to say, they all have some way to go to get to the new accepted safety levels -and the talks going on to reset the Global banking regulations will if anything make these tougher yet.The new preference shares will help, but we have a long way to go yet.

Anne
(very glad I'm not in the stock market any more)

 

[Power Lunch Club]

And this morning, it is being widely reported that banks are going to be told by Alistair Darling and Peter Mandelson to start lending to small businesses again.

BBC NEWS | Business | Banks face warning on small firms

But the little lending they have produced are coming with heavy financial strings attached.

I am more and more convinced that banks are a law unto themselves and that there is now a serious case for a new breed of bank. If a business was to offer a new type of service in their particular industry and they stood out like a sore thumb, they would get noticed as different and probably get business. Now if a bank came a long with low borrowing charges, reasonable banks charges, capped penalisation charges, I am convinced there would be a market (like there wouldn't be)

But the point is, these bank are bullies, I don't think I can use that word strongly enough. Banking (not just borrowing) in this country is a major expense to a business and they have to stop it now or be controlled and regulated.

Again, I thought we owned the banks now, so lets see what AD and PM can do today...probably heehaw!!

 

[Power Lunch Club]

I would love to be in the room with them

BBC NEWS | Business | Banks to face small firm showdown

Gordon

 

[Power Lunch Club]

As we all suspected...

Businesses lose faith in banks...

Tension as business leaders lose faith in banks - Business 7

Gordon