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March 24th, 2012 
FAKE NEWS for the Zionist agenda
By
Hugo Duncan And James Salmon
19:29 EST, 23 March 2012
|
19:29 EST, 23 March 2012
Banks were yesterday ordered to put their houses in order to stop a new financial crisis crippling the country.
The Bank of England said UK lenders are still not strong enough to withstand further shocks from the eurozone and must act ‘as early as feasible’ to raise funds.
It also repeated calls for restraint on pay after another bumper bank bonus season.
The Bank of England repeated calls on banks for restraint on pay following another big bonus season
Regulators have long argued that banks should use any spare cash to bolster their defences and lend to businesses rather than line the pockets of their staff.
The Bank said ‘some progress’ has been made in building up reserves – but nothing like enough to protect the economy from the single currency debt crisis.
The warning underlined the ongoing fragility of the financial system four-and-a-half years after Northern Rock hit the buffers and more than three years after the collapse of Lehman Brothers.
In December, the Bank warned that British lenders have more than £190billion tied up in Europe’s most debt-ridden countries and must prepare for the worst.
It said banks should slash bonuses to staff and dividend payments to shareholders to shield themselves from ‘extraordinarily serious and threatening’ financial storms.
Meltdown: The collapse of Lehman Brothers in 2008 caused a crisis in the world’s financial markets
The Bank also insisted that lenders continue to extend loans to households and businesses to keep the economy moving.
But since then the banks have showered lavish rewards on staff including multi-million-pound bonuses for top executives.
Yesterday a Bank report said that its new financial policy committee, which was set up to police the banking system, had found that ‘immediate market tensions had subsided somewhat’ in recent weeks.
But it added that ‘the overall outlook for financial stability remained fragile’.
The report said the banks had made ‘some progress’ in restraining pay and lending to business while at the same time bolstering their defences. But it said the FPC ‘remained concerned’ banks did not hold enough in reserve to protect themselves if the eurozone crisis escalates.
The Bank called for further restraint on bonuses to staff and dividends to shareholders but added that even this would not be enough. ‘[The FPC] therefore advised banks to raise external capital as early as feasible,’ the report said.
State-backed Lloyds and Royal Bank of Scotland together dished out £1.7billion in bonuses to staff last year, despite slumping to combined losses of £5.5billion.
At Barclays, which did make a profit, chief executive Bob Diamond was lined up for a total pay package of almost £27million.
The banks also failed to hit their small business lending targets under ‘Project Merlin’ as firms struggled to get the funds needed to survive.
The crisis facing small companies has been highlighted by the Daily Mail’s Make The Banks Lend campaign.
The British Bankers’ Association said: ‘We have always recognised the need to raise capital to help ensure a stable banking system. But there must be a careful balance between capital held on the one hand and having funds available on the other to support business and growth.’
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What about a bonus for the savers,the sheer greed of bankers around the world caused this mayhem that we have been enduring for 4 or 5 years now,their proposed bonus pots should be shared amongst the saving fraternity.
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If the banks pay a large bonus, 50% tax will be paid. If the banks keep that money within their own accounting system, no tax will be paid. Discuss.
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I don’t see the banks taking much notice, they now realize there is no price for failing the government will simply rob the population to pay for their mistakes. The UK is simply rotten to the core so many people are now on the take it’s impossible to trust any form of authority.
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love seeing the bank of england playing the role of King Canute. the banks know the BoE and government are toothless, they know they are protected from failure (no hint of market forces there), they know that they have probably the most bank protective set of conditions in history, as the saying goes, ‘make hay while the sun shines’ and cameron is making sure the sun shines for this lot, its raining for the rest of us though. “we’re all in this together” yeah right!
the greed of the few outweigh the needs of the many!!!
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As if the bankers will take any notice…. they know that they were bailed out by the tax payer in 2008 because they were too important to fail, they know they’ll get the same support in the future….. The banks should have been left to fail and start a new system, there is no reward for restraint but the bankers see the reward for recklessness…..
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