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Can We Really Trust The Banks Again?

Updated on April 28, 2013

Public loss of interest.

The banks have been bailed out to the tune of billions and are still continuing to receive huge bonuses along side a healthy wadge packet, while it seem the rest of us mere mortals have to put up with our wadges being frozen and scrimping and saving to get by.

But didn't we just bail them out? How ever you look at this situation it is unfair and we know that if this had happened to any other business sector legal action would almost certainly have been taken and any other failing company would have been left swiftly to bankruptcy. So what exactly makes the banks so special and exempt from normal business procedures?

Ever get the feeling you've been robbed?

I think it's pretty fair to say that most of us are justifiably outraged with the banks and dumbfounded by the incompetence of the majority in the banking industry, individuals that supposedly have sound economical knowledge and good financial business sense. Have proved to be nothing more then irresponsible gamblers and greedy fat cat's. Yes we harbor resentment, have lost faith in the financial sector and are furious that no one has been brought to account. (excuse the intentional pun) An insincere apology in my opinion is less then worthless and of no use or help to the small businesses and families that they have caused so much stress and anguish too.

The banking system does not work and it appears that recent events have not lead to any lessons being learned from these mistakes and there consequences. No suitable action has been taken nor constructive or effective changes have been made. To in my opinion, blatantly failing current banking policies. The government has saved the banks but at the expense of the tax payers and it has left more then just a bitter taste in the mouth of those on the receiving end of bad business ethics. It's no secret that bonuses are still astronomical amounts of money, the pensions and resignation payouts are equally so.

When these wealthier of individuals heard that they were not going to receive the money they had so easily gotten used to spending and receiving, there were copious cries of "but how will we afford to live?" Their wadges as they stood were more then adequate for any individual to comfortably survive on and that is were the issue holds a lot of water and the sympathy runs dry!

Why they have us over a barrel.

We have all heard the old adage that money makes the world go round, the whole worlds monetary system revolves around, through and by the banks. The banks are the back bone of finance and the blood of the economy, for the sake of individuals, big and small businesses the banks had to be saved. That I understand, it obviously makes more sense to invest more money now and recoup it at a later date then to lose what we have all together. However the problem truly comes to light, when the original banking procedures that caused the initial problems, quickly resume there faulty practices.

The banking sector is owned by very rich and very powerful people, they are associates of those in government and are greatly influential. If the banking industry had collapsed, so would have the loyalties of many of these people and that would not have been good for the movers, shakers and leaders in government. They also have to tread carefully with the dishing out of sanctions and punishments, as this could offend certain privileged individuals.

In short, due to the way the world works, finance is imperative and money talks. Without challenging and changing society as a whole, the banking system will invariably stay as it is.   

Will we trust them with our money again?

Of course, this is not the first recession the world has ever seen or the first time banks have been of less then a financial success, life goes on, in time people forget and trust will (eventually) return.The world works in continuing cycles and after things have recovered, if nothing has changed we will probably face a similar dilemma yet again. We all so currently have no other option then to use the banks, as this is how finance and economy works in todays society.

Is there anything, that us the little people can do?

Absolutely! Use your bank like they use you and your money.

Knowledge is power and there is a lot to be said for knowing your rights and unfortunately if that means reading the small print, then so be it. I wish I had when I was charged a £38 unpaid item fee, for a purchase that was paid for 2 day's too late. If I had known this I would not have covered this purchase by a check that took 5 day's to clear.

Ask questions, lots of questions. I remember I went to my bank not so long ago for my annual review and not long into my conversation with one of my banks employers, I was offered a life insurance policy. She gave me the details and promoted the benefits of this particular product so well that I found myself actually seriously considering signing up for it. I didn't have any savings at the time and a payout for my son if I died, would really help him and my family out, even if it was only financially. Being of a curious nature and not one to part with my money easily the questions were coming thick and fast. How much will it cost me a month? How much is payout of death? Who will get it? Then came the clincher, the answer to a question that convinced me not to sign up. "What happens to all the money that I pay in if I don't die in the next 30 years?" She said "Nothing" Yes, it turned out that if I was still alive in 30 years time I would lose all that money. Bare in mind I was only 25 at the time.

Use your consumer power, you are a customer and they should be working for you, after all it's your money that pays their wadges. If they are not doing their up most to help you manage your money or staff are not meeting there obligations satisfactorily, take your custom elsewhere and find another bank.

Lastly but most importantly, if you are a credit card user, try your hardest to pay off your balance in full and on time each and every month. Interest rates, late payment fees and penalties can soon spiral out of control, the banks can and do increase there rates frequently.

Should we trust the banks again?

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    • profile image

      Maud 3 years ago

      That's a sharp way of thniikng about it.

    • profile image

      Brandilyn 3 years ago

      Hey, that's the greaetst! So with ll this brain power AWHFY?

    • wrenfrost56 profile image

      wrenfrost56 8 years ago from U.K.

      Thank-you for your comment scheng1, the government and the banks are in deed a glove in hand partnership, however who is wearing the glove I am not quite sure?

    • profile image

      scheng1 8 years ago

      I think we can ask whether the government has the ability to regulate the banks or the banks have the ability to control the government. It seems that the government is at the mercy of the banking system.

    • wrenfrost56 profile image

      wrenfrost56 8 years ago from U.K.

      Thank-you for your comment dyonder. I agree with you the banking system is ripe with inefficiencies, I have not heard about the student loan situation in the U.S. thanks for the information I will read up on that.

    • dyonder profile image

      dyonder 8 years ago from Colorado

      Very nice read, wrenfrost56. The convoluted mess that is modern banking is ripe with inefficiencies (& opportunities for them to profit from such) which the consumer ends up paying for, the uninformed consumer I should say. Interesting item I just found out from my college today is that of next spring no banks in the states will be offering student loans (in the form of Master Promissary Notes). They will only be offered through U.S. gov's Direct Loans program. Curious indeed.

    • wrenfrost56 profile image

      wrenfrost56 8 years ago from U.K.

      Thank-you for your comment Info Help. I am glad you liked my hub, I also think the fees are rediculous.

    • Info Help profile image

      Info Help 8 years ago from Chicago

      Hi Wrenfrost56

      Great hub! I agree with mtsi1098, the ATM fees are ridiculous for most banks as well as the overdraft fees that they charge.

    • wrenfrost56 profile image

      wrenfrost56 8 years ago from U.K.

      Thanks for your comment the rope, I am glad you have a good understanding of the banking industry and are not afraid to use your consumer power. An annual review is not obligitory it's just something the banks want you to do in order to try and get you to purchase services.

    • The Rope profile image

      The Rope 8 years ago from SE US

      I've been using credit unions for 25 years now and if one gets too like a commercial bank, I just move. I refuse to get sucked in anymore. If you have more than the insured amount, just spread it between several.

      I'm interested in this "annual review". Is it something you do or is it something that is required by UK banks?

    • wrenfrost56 profile image

      wrenfrost56 8 years ago from U.K.

      Thanks for your comment mtsi1098, your right about ATM charges in some cases they are as much as 25%!

    • profile image

      mtsi1098 8 years ago

      The thing I do not like the most on banks is the ATM charge - this burns me up every time - Anyway good hub, thanks for posting...

    • wrenfrost56 profile image

      wrenfrost56 8 years ago from U.K.

      Thank-you for your comment one2get2no I am glad you thought it was a nice article. I also appreciate that not all bankers are not unscrupulous and you were one of the exeptional few. I am aware that the financial crisis is not just down to the banks, I was just stating that in my opinion the banking system in general is failing. I also state in this hub that I think that banks are necessary for the economy and that I agree that they should have been bailed out, my main gripe is that after being bailed out I feel that bonuses should be suspended for the forseable future.

    • one2get2no profile image

      Philip Cooper 8 years ago from Olney

      Nice article but slightly misjudged. Not all banks are to blame for the financial crisis. A few investment banks and a few individuals within their ranks plus a lax system of mortgage lending specifically in the Illinois and Ohio states. If there were no banks there would be no industries, no companies,and no leverage and you would not own a car or a house or furniture and you would wear shoddy clothes and never eat out. If you don't want any of these things then by all means lets can the banks. Of course you will have to take all this with a pinch of salt as I'm an ex-banker.

    • wrenfrost56 profile image

      wrenfrost56 8 years ago from U.K.

      Thank-you Helen and Tina for your comments, I am pleased you liked my hub.

    • TINA V profile image

      TINA V 8 years ago

      A very timely article. Banks now have a very high interest rate of up to 30% based on the news. As customers, we should always be on guard. Don't believe everything that their personal banker tells you. Not even their promotions are all true.

      Your article is a good information to all. Have a great day!

    • Helen Cater profile image

      Helen Cater 8 years ago from UK

      I have had a few problems with my bank over the last year and have lost all faith in them. They are gready and out for there own gains at whatever cost. Thanks for this hub it is a very good read.