Layoff List Grows: Morgan Stanley to Cut 1,600 Jobs | Fox Business

This article published by Fox Business is worrying. It’s worth a read.

via Layoff List Grows: Morgan Stanley to Cut 1,600 Jobs | Fox Business.

With the World’s economy growing and financial markets at record highs, it’s strange that the big banks are laying-off staff to cut costs. The banks are citing global uncertainty.

Certainly, as US interest rates start rising, the hot money will be swarming overseas looking for a new home. But real estate and many financial markets are overpriced, so one wonders what’s going to happen?

With Obama in the White House, political risk seems to be rising across the board. Soon perception will give way to fear start to influence investment decisions. On the back of lower oil prices, many countries are experiencing deflation, falling prices. Take the UK for example. If you look carefully at the Office of National Statistics data on inflation, you will see an alarming trend. If you strip out rising prices of services, the prices of goods in the UK has been falling steeply for some time.

In a word, the problem is extreme ‘volatility’. But if we look at the major risks in the world, a ‘volatile event’ could easily trigger a major market correction.

Let me ask an open question:

What if anything are the investment bankers hiding?

Thoughts?

 

Banks accused of being ‘fundamentally corrupt’ after they sold useless card insurance to two million customers  | Daily Mail Online

This is a must-read article from the Daily Mail, with a damning headline. Check it out!

via Banks accused of being ‘fundamentally corrupt’ after they sold useless card insurance to two million customers  | Daily Mail Online.

Major UK banks, including Llloyds, RBS, Barclays and HSBS have been ordered to pay compensation, after selling worthless insurance to up to two million customers,

Lord Turso, a former member of the Parliamentary Commission on Banking was cited by the Mail as saying:

‘This is yet another mis-selling scandal which underlines the conclusions we came to in the banking commission that sales practices used by thee banks were fundamentally corrupt.

Clearly, the UK banks are too big and bloated, paying bonuses that are too high and the interests of consumers seem to be subordinated.

This leads me to an open question:

Perhaps, it is time for the European authorities to take a hard look at UK banks in the interests of protecting consumers?

Thoughts?