For the last few months all we have really been hearing is about companies going in administration, we have seen high street stores suffer the most. But what happened to all of the banks being in debt and having to be bailed out.
It was announced that for the year 2008 Barclays bank were set to make a massive 6 billion pounds in profit, ok this may be down from the year 2007 but that is to be expected. What I cannot understand is why banks are getting bailed out when they are making a profit. Ok maybe Barclays did not get a government bailout but they did approach investors for funding. So if Barclays is making a pure profit of around 6 billion, which is a huge amount, then why cant the other banks do the same or are they?
There are a few reasons as to why I feel the banks are mismanaging themselves.
1) We all know that banks call it “Dangerous” very quickly, even if they are making sheer amounts of huge profit they start to get panicked. How can banks that are making billions of pounds profit get tax payers bailout.
2) The big guns of the company get a lot of money making the overall profits a lot less. I do not see why anyone needs to get five million pounds in wages and then get a 20 million pounds bonus on top of that. That works out to a whopping half a million pounds wages a week. There is no way anyone should be earning that kind of money.
3) Are banks being bailed out without thorough investigation? Are the banks just shouting help and the government running in to save them?
Whatever the cause I think very prompt action should be taken against banks; I don’t see how they are not making pure profits. We all know that even if you have missed a payment of say a pound the banks will automatically give you a charge of around forty pounds which is just ridiculous. How can banks charge someone for missing a payment of one pound, when all that happens it automated. They simply send you an automated letter which in the post would cost a few pennies and via email which most people prefer is absolutely free.
Barclays is taking the first step by reducing and stopping big bonus payments, I hope that all the banks soon follow in there footsteps.
By m_baecher from Pixabay