The FT noted last night that:
Jeremy Hunt has called in Britain's largest banks to discuss why they remain so poorly valued compared with global peers, as ministers seek feedback on how to help boost the sector and the competitiveness of the City of London.
Let me offer a list of reasons why UK banks are undervalued:
- Terrible service
- Distance from the communities they serve
- Total self obsession
- Purveyors of an arrogant sense of superiority unjustified by facts
- Far too closely associated with tax havens
- Upholders of the class system
- Risk aversion, meaning they almost only loan with property-based security and almost never fund business risk
- Excessive financial trading
- Overly large bonuses
- Opacity
I am sure there are more, but solve those, and they would be better.
And what business is this if the Chancellor, anyway? Addressing bank failure to serve the community is an issue. Concern with valuation is not.
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Great summary of our banks above.
But also so typically Tory-fascist to go looking for other people to target to take the heat off themselves and also not see that they have been in charge and that if the banks are not very good it’s their political culture that enables it.
Hunt – the perennial Tory dimwit.
Jeremy Hunt, Jeremy Hunt, Jeremy Hunt the useless c*nt. Since when did any member of the tory party, the party of ‘personal responsibility’ and ‘self-reliance’, ever take any responsibility for anything going wrong?
I remember many years ago when BCCI went bust, my late father, a Midland Bank Pensioner at the time was complaining vocally that The Midland – that he had shares in WASNT serving the minority communities that BCCI did and that there was clearly a profit to be made there so they were missing an opportunity.
But perhaps investors need to be given the credit for realising that what they are now investing in are organisations that are little more than posh bookies
When you see the Banks withdrawing branches from the High street the mentality is very similar to the Post Office.
Both claim that High street branches are no longer needed/profitable but for years whenever you went in one there were always long queues of people waiting to use the services they provide.
I would suggest that if you come across any business that has more customers than it can deal with, but claims it cannot make a profit, then you have a sure sign of a failing business.
Remind me how much money most people pay for their current accounts, cheque books, card payments, direct debits, internet banking, access to cash machines etc etc?
And you wonder why banks can’t make a profit, when interest rates have been close to zero for an extended period?
Then add all of the legislation that plenty of people would have you believe does not exist.
You really do not understand banking
I suggest you read a set of bank accounts
Jeremy Hunt? The Jeremy Hunt who has said this: “Jeremy Hunt has said he will do ‘everything’ he can to speed up compensation for the hundreds of sub-postmasters who were wrongfully prosecuted. The Chancellor added: ‘We want to do this as fast as possible'” (Daily Mail).
That Jeremy Hunt? The General who arrives with his troops after the battle, and promises he will still win it; but – of course – not precisely how or when. Sounds like Hunt. I guarantee his Budget tax cuts will be in the hands of the recipients before all the Postmasters and Postmistresses have received full financial redress (oh, please Jeremy Hunt, tell me I am guaranteed to be wrong – make my day).
Meanwhile, while Hunt has been asleep on the job, and done nothing of any use to the Postmasters/mistresses while in office or in cabinet, throughout his whole term in Parliament; we now understand the following, which have developed in the last few days:
1) The Post Office (PO) ‘Capture’ computer system, (pre-Horizon) is now subject to a second Government investigation, too late and bizarrely the Government is entrusting the PO to carry it out (source: iNews).
2) It has been reported that the PO Board knew about the seriousness of the problem in 2013; when the PO approached its insurers about the consequences of the flawed Horizon system and the convictions (Channel 4 News).
3) Fujitsu has paused applications for Government computer contracts (ITVx). Fujitsu has received £4.9Bn of Government contracts since 2019; after the Court of Appeal overturned the Horizon-based convictions (Daily Mail). One contract for £184m, for the Foreign Office was awarded in spite of concerns that the system was unfit for purpose, and the FO preferred another supplier (BBC).
None of this is due to prompt Government action, or uncovered by Government. Every day, another disaster, another shock for poor old Kevin Hollinrake, the PO Minister, who is floundering to achieve anything that actually works, or works fast. Here are some questions Hollinrake may like to ask himself.
What is Jeremy Hunt for?
If the PO Board knew about the problem at least from 2013, what did they tell their sole shareholder?
What did the sole PO shareholder (the Government) do in 2013?
Why did the government award contracts to Fujitsu after 2019, without a full investigation of all the circumstances?
Why has it taken Fujitsu itself to do one small decent thing; pause applications for Government contracts?
Why did the Government not suspend Fujitsu from applying for new contracts, until there was an investigation?
Why has the Government not announced an investigation of all its current contracts?
Frankly, Hollinrake is the wrong person to provide answers. These are questions Sunak needs to answer (unfortunately, I do not have Sir Robert Chote handy to check the accuracy of his answers; and without that how can I be sure of anything?).