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The Credit Cruncher was conceived to help you to keep up to date with credit crunch and recession developments, it provides some helpful credit crunch advice and it addresses personal debt. The Credit Cruncher also seeks to explain how the credit crunch started and shed some light on the worldwide recession. Recently, we have begun to look at how BREXIT will affect the UK economy. Please feel free to leave comments where relevant.

29 Jun 2012

UK banks under pressure

As Europe tries to sort out bail-outs and attempts to keep the Euro afloat, UK banks have scored a number of 'own-goals' in recent weeks.

We have Barclays being handed a massive fine of £290million, for it's dodgy dealings with banks rates.. within days we had RBS having catastrophic software problems that meant a massive backlog in their payment system. This has prompted the CEO of RBS to turn down any bonus that he would have been entitled to this year (whilst still maintaining that this was the result of previously existing systems).
Today we have the news that the big four banks have all mis-sold complex 'products' to small businesses designed to 'protect' the businesses from interest-rate fluctuations, but ending up as a massive weight around the neck of many a small business.

These news items taken separately are not earth-shattering revelations, but in the wake of the bank-inspired credit crunch, and the ensuing financial mayhem - we are reassured that the banks have done little to put their financial houses in any sort of good order. The banks seem regardless of their public image, ignorant of popular feeling and may yet feel the wrath of both regulatory authorities and the popular vote.

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