Bank of England Deputy Slams Fines

According to Andrew Bailey, Head of the Bank of England’s Prudential Regulation Authority, regulators need to adopt a “cards on the table” approach and agree to sensible penalties for bank’s wrongdoing.

The deputy governor of the Bank of England has come out and said that the global regulators need to consult each other before they slap huge fines on the banks or it could undermine efforts from the banks to rebuild strength in the system.

Speaking at a British Bankers Association conference in September this year, he has said that he is currently trying to build up capital in firms and it is being drained straight out of the other side in fines. He didn’t mention however, that these fines were perfectly fair.

Bank Fines

As we’ve mentioned time and time again, the big banks in this country have been receiving fine after fine recently but they’re not for nothing at all. No, these fines are all for good reason.

The most common and well known fines that the banks have gotten in recent years are for the PPI mis-selling scandal. Lloyds Banking Group is currently sitting at the top of the list. The total Lloyds PPI bill is now over £10 billion.

Included in the list is Santander. The Santander PPI bill is fast approaching the £1 billion mark after they increased it by £65 million earlier this year. Also, the Barclays PPI bill has risen to £5 billion after they increased their PPI provision by a further £900m earlier this year.

These aren’t the only fines that the banks have been receiving, though. They have been fined for a number of other things. Barclays received a £38m fine just last month for failing to keep their clients’ money safe. They may also face an extra £1.2 billion in fines after giving an unfair edge to high speed traders in what is called “dark pool trading”.

Our Thoughts

These are just a small sample of the fines that have been received by the banks. They go some way to showing how the banks are always looking to make money at their customer’s expense and it’s in fact the banks, not the regulators who are destroying the trust. When will they learn?

It’s clear that the banks don’t have their customers’ best interests at heart. They’re at the control of their shareholders and, as such, under pressure to make profits which only leads to one thing, the temptation to cheat.

If you’ve had a loan, mortgage credit or stroe card the past, check out our comprehensive list of who sold PPI to find out if you could start to claim back money that is rightfully yours if it has been mis-sold.

Alternatively, do you pay for your bank account? We estimate that of the 10 million packaged bank accounts that are currently in use, with a significant number of these being mis-sold, leading to a potential compensation bill running into £BILLIONS.

No account numbers required, we obtain all the details we need directly from your lender.

So, what are you waiting for? Fill out the form to the right hand side of this page and we’ll send you out one of our claim packs.

Fines Undermine System