While the banks rightly deserve much criticism sometimes i wonder does the media go a bit overboard. In todays Independent an article says that no action is to be taken following Bank of Ireland,s failure to make the payment of 280m Euro to the Exchequer. Later on there is brief reference to the fact that the bank in effect is precluded for time being by the EU in making this payment. This fact has been widely reported in recent times.
Media Treatment of the Banks
- Thread starter dewdrop
- Start date
On the opposite side, from what I've seen Halifax (BOSI) seem to be getting a pretty easy ride of it in the media. Most criticism has been of the Government's handling.
Let's not forget that BOSI were the first to come in and offer the cheaper credit, 100% mortgages etc. While the Irish banks operated a cartel, the sudden uncontrolled shift from BOSI accelerated the whole process.
They came in and cherry picked which parts of the market they wanted, just like now the credit card and the savings area. Rabbo are the same, aggressive marketing behind the savings side. Great, take all the savings money out of the Irish system but aren't offering loans back, they aren't releasing the credit back into the economy. That burden's now on BOI and AIB (who are criticised for not releasing credit).
Even worse that Halifax is keeping open the savings accounts, but keeping the money in the UK. No loans, no mortgages, no credit back into the system.
But then all we needed was/is more competition and we'll be grand...
Let's not forget that BOSI were the first to come in and offer the cheaper credit, 100% mortgages etc. While the Irish banks operated a cartel, the sudden uncontrolled shift from BOSI accelerated the whole process.
They came in and cherry picked which parts of the market they wanted, just like now the credit card and the savings area. Rabbo are the same, aggressive marketing behind the savings side. Great, take all the savings money out of the Irish system but aren't offering loans back, they aren't releasing the credit back into the economy. That burden's now on BOI and AIB (who are criticised for not releasing credit).
Even worse that Halifax is keeping open the savings accounts, but keeping the money in the UK. No loans, no mortgages, no credit back into the system.
But then all we needed was/is more competition and we'll be grand...
Z
z107
Guest
Who do you blame for this?
I don't blame BOSI. Their remit was to try to make as much money as possible. I don't blame BoI or AIB either. Both appeared to be operating within the rules.
So who do we blame I wonder?
Answers on a post card addressed to:
Government was to blame competition
Askaboutmoney house
Cash street
Ireland
Do you think people will ever get tired of asking 'who is to blame for this'?
There is plenty of blame to share around but it doesn't get us anywhere. It's like listening to the opposition parties every time they open their mouths. We get it. It's the Governments fault. You wouldn't have made the same mistakes. Blah blah blah
There is plenty of blame to share around but it doesn't get us anywhere. It's like listening to the opposition parties every time they open their mouths. We get it. It's the Governments fault. You wouldn't have made the same mistakes. Blah blah blah
What's blame got to do with anything? This constant national need for scapegoats is getting tiresome. I can be annoyed at the tactics of BOSI and Rabbo operating here without blaming them, the government, the media. The sooner it's accepted that we couldn't have got as much in the mire as we did without everyone's informed or uninformed co-operation and participation, the better.
As you say, the remit of BOSI was to come here and make money, so how is the government supposed to stop them leaving? Force them by armed guard to stay open?
However, that's for another thread. This is the media's cherry picking of facts/issues to perpetuate certain stereotypes. In this case, BOSI seems to have been absolved of any criticism in the majority of the media.
Z
z107
Guest
Okay, here's why we need someone to blame;
If we do not punish those that were responsible, the same mistakes will be made again and again. The only way forward is to root out and punish those that were at fault. Only when we have done that, can we move forward. Until we do that, Ireland will sink further and further into the mire, as the guilty try to patch up their past mistakes.
No group of people have been held to account for bankrupting the country. All this money that is being taking from us and given to the banks etc, may as well be burnt. At least you'd get heat from it.
So, in summary, we will never be able to move forward while these people are still in power. Unemployment will continue to rise and taxes will continue to increase. The situation will get worse, while our money is given to the wealthy.
If we do not punish those that were responsible, the same mistakes will be made again and again. The only way forward is to root out and punish those that were at fault. Only when we have done that, can we move forward. Until we do that, Ireland will sink further and further into the mire, as the guilty try to patch up their past mistakes.
No group of people have been held to account for bankrupting the country. All this money that is being taking from us and given to the banks etc, may as well be burnt. At least you'd get heat from it.
So, in summary, we will never be able to move forward while these people are still in power. Unemployment will continue to rise and taxes will continue to increase. The situation will get worse, while our money is given to the wealthy.
The government didn't want them to leave! They wanted them to keep inflating house prices with cheap and easily accessed credit. The government could then siphon of taxes and duties. The government encouraged them with tax breaks and little, if any, regulation.
So things would be better if we stuck FF, all the bankers, all the developers, all the property speculators, the financial regulator, the ECB for their low interest rate policy, trade union officials, estate agents, media owners, US sub-prime mortgage lenders, lehman brothers executives, house buyers, local authorities, greedy business men, Santa Claus, the Easter Bunny etc etc into jail??
Not before we cut the pay and conditions of the greedy public sector people starting with an overtime ban for prison officers.
So is the most patriotic thing we could now do switching our assets into BOI & AIB deposits?
See Sunny's post.
But even as a concept it is completely flawed. You're right, but only if you cherry pick the people you think are to blame. Even then punishment doesn't help us learn and doesn't fix a thing other than your own satisfaction and blood lust.
It is perfectly easy to get forward by fixing what we know went wrong. There's no prequisite that those who made mistakes are punished for the mistakes before they can be fixed.
The only bank I have seen respond to the Halifax closures is Ulster Bank who came straight out offering credit cards, loans and current accounts. Haven't heard a peep from the other banks. Shows what dire straights they are in.
Good Lord have you lost your mind - not the Easter Bunny
Did you not see the price of Easter Eggs during the Celtic Tiger years? Apparently the only person that didn't carried away during the boom was the toot fairy.
I'm not playing the patriotism card. People are free to chose where they invest or save their money. Yes there are consequences in the same way there's consequences to shopping outside of the state, but people are free to do it and I understand why they do it.
The only caveat is don't complain about unemployment as retail sheds jobs, don't complain about the lack of credit coming out of the banks if you do.
BOSI came in because the main 2 operated a complete vice grip on all our finances and we wanted competition. Well we got that and then some. And now they do a runner. I just think given their time in the Irish market and how they've left that they've come out of this relatively unscathed within the media.
It is hilarious to think that competitiveness between banks had a lot to do with the mess.
In my mind political beliefs need to move from right wing or left wing towards deciding what should be state operated versus what should be privately operated.
Maybe areas where regulation has failed are the best indicator or what should be left in state hands. It fast becoming apparent that the state need to be more heavily involved in deposits and lending than many of us would have thought.
I agree 100% on the issue of where to place deposits. It is almost the exact same debate are cross border shopping. In other words it's a kind of game theory, individually we benefit from shopping for goods, deposit rates, etc outside the state but collectively we are losing out.
Like you I'd now lean towards not telling people it's unpatriotic to shop outside the state. If we, or our banks, are bloated and inefficient there is no point in propping up that inefficiency.
I suppose the whole point is that competiveness from BOSI led to recklessness rather than efficiency and for that I would blame our banks.
I agree with everything you've said and the irony of the situation would be funny if it happened elsewhere.
We're one extreme to the other, from a small cartel holding us to ransom to a free for all.
We're too small a state and market for true capitalism to take hold. That's sounds nonsensical I agree, but there wasn't enough of a market for huge competition with the banks and that created a false market for products, then everyone has to sell more in order to keep up with the competition and you get a vicious circle. We even had a Flashforward with the Independent Insurance debacle.
The size and scope of the banks we had were fine, it just needed better regulation.
And we got stuck with some cartels remaining (energy as one) and others weakened to very vulnerable markets. So the remaining cartels help keep prices high and everything else follows.
We should accept we're a very small market, the levels of private spending were just way beyond what we could ever sustain. Inviting in the "devil" to shake things up just couldn't work. Better regulation could have.
An Independent Newspapers publication takes a subjective slant on a story involving an Irish bank
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