This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/talking_point/7843304.stm

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
City Diaries City Diaries
(5 days later)
Another grim week in the finance world has seen the publication of the latest statistics which show that unemployment is currently standing at 1.92 million.Another grim week in the finance world has seen the publication of the latest statistics which show that unemployment is currently standing at 1.92 million.
Our City Diaries are written by people who work in finance and have had a front row seat as their industry goes through the biggest changes in decades.Our City Diaries are written by people who work in finance and have had a front row seat as their industry goes through the biggest changes in decades.
They will be giving us regular insiders' updates on the mood in the City of London and the dramatic changes in the world of finance.They will be giving us regular insiders' updates on the mood in the City of London and the dramatic changes in the world of finance.
LAURALAURA
Laura (not her real name) works for a commercial bank in London.Laura (not her real name) works for a commercial bank in London.
I'm getting increasingly angry with some of the banks (including those which are partly nationalised) still trying to buy in business at loss-making borrowing rates. Still charging 1.25% over base when LIBOR is 0.8% over base for business lending is what Mr Brown should be ranting about - it almost seems that this taxpayer money is encouraging stupid lending. All they are doing is putting the whole industry more at risk - and it's not like it can get much worse.I'm getting increasingly angry with some of the banks (including those which are partly nationalised) still trying to buy in business at loss-making borrowing rates. Still charging 1.25% over base when LIBOR is 0.8% over base for business lending is what Mr Brown should be ranting about - it almost seems that this taxpayer money is encouraging stupid lending. All they are doing is putting the whole industry more at risk - and it's not like it can get much worse.
The new loan guarantee scheme has prompted a sum total of one enquiry from our customers so far. We are sceptical that the government would ever pay out under their guarantee as there is a conveniently hidden declaration banks have to sign, effectively saying that they would have lent money to a business happily and on the same terms, even if there was no guarantee available. How can you prove that beyond doubt? No confidence boost to lending there then.The new loan guarantee scheme has prompted a sum total of one enquiry from our customers so far. We are sceptical that the government would ever pay out under their guarantee as there is a conveniently hidden declaration banks have to sign, effectively saying that they would have lent money to a business happily and on the same terms, even if there was no guarantee available. How can you prove that beyond doubt? No confidence boost to lending there then.
Colleagues have been staring at the news websites for hours this week watching falling bank stocks, unable to breathe for fear that we will be next. The name of the game is staying low profile - don't promise anything too big, add caveats to everything you say and above all don't stick your neck out for a customer who may lose the bank money. Performance management is the new stick with which to beat us - unbelievably the current crisis is not a reason to underperform on your growth target. Many feel that it is just a way to ultimately lay people off without having to mention the "R" word. By March we should find out.Colleagues have been staring at the news websites for hours this week watching falling bank stocks, unable to breathe for fear that we will be next. The name of the game is staying low profile - don't promise anything too big, add caveats to everything you say and above all don't stick your neck out for a customer who may lose the bank money. Performance management is the new stick with which to beat us - unbelievably the current crisis is not a reason to underperform on your growth target. Many feel that it is just a way to ultimately lay people off without having to mention the "R" word. By March we should find out.
Read Laura's previous diary entriesRead Laura's previous diary entries
JAMESJAMES
James (not his real name) works for a large UK Bank outside London.James (not his real name) works for a large UK Bank outside London.
This last week I have been giving some thought to the issue of regulation which has surfaced as a result of the banking crisis. Calls have been made through the media for more regulation of banks. I don't think this hits the point. What we need is smarter regulation.This last week I have been giving some thought to the issue of regulation which has surfaced as a result of the banking crisis. Calls have been made through the media for more regulation of banks. I don't think this hits the point. What we need is smarter regulation.
Since the advent of the Sarbanes Oxley legislation, the amount of regulation within the banking industry has grown to a point where a fair-sized army of people is employed within each bank. Their sole purpose is to make certain that we are abiding by the current regulatory rules. Consequently, our processes and our numbers are checked by auditors, internal auditors and the Sarbox department. Audits of one type or another are taking place for up to a third of the year. The number of reports we produce, solely to satisfy the regulators, is impressively large. Yet all this regulation has failed to stop the banks with some of the brightest people on the planet make a hash of it.Since the advent of the Sarbanes Oxley legislation, the amount of regulation within the banking industry has grown to a point where a fair-sized army of people is employed within each bank. Their sole purpose is to make certain that we are abiding by the current regulatory rules. Consequently, our processes and our numbers are checked by auditors, internal auditors and the Sarbox department. Audits of one type or another are taking place for up to a third of the year. The number of reports we produce, solely to satisfy the regulators, is impressively large. Yet all this regulation has failed to stop the banks with some of the brightest people on the planet make a hash of it.
I strongly believe that the current regulatory framework has created a situation where the wood cannot be seen for the trees. I do hope that whatever new regulation the FSA, Bank of England and Government come up with, it will be strong, transparent and intelligent. Let us have fewer reports and reports that are easier to compile. But most of all let us have regulations that are forward looking, instead of mostly painting a picture of where we have been.I strongly believe that the current regulatory framework has created a situation where the wood cannot be seen for the trees. I do hope that whatever new regulation the FSA, Bank of England and Government come up with, it will be strong, transparent and intelligent. Let us have fewer reports and reports that are easier to compile. But most of all let us have regulations that are forward looking, instead of mostly painting a picture of where we have been.
Finally, to go with those regulations, we need increased accountability and penalties for the leaders of our industry. Something that really makes them sit up and think. Let us ensure that bonuses (which inherently are not a bad thing) only happen in relation to long-term growth instead of short-term gain.Finally, to go with those regulations, we need increased accountability and penalties for the leaders of our industry. Something that really makes them sit up and think. Let us ensure that bonuses (which inherently are not a bad thing) only happen in relation to long-term growth instead of short-term gain.
Read James's previous diary entriesRead James's previous diary entries
MARKMARK
Mark (not his real name) works for a stockbroker outside London.Mark (not his real name) works for a stockbroker outside London.
The Have Your Say comments on the latest blog entries were very interesting, especially Mark from Bracknell who commented on the back office or operations staff. It is true that should a stockbroker lose his job, he will generally find another firm willing to take him (or her) as in most instances the clients strike up a personal relationship with their broker and will move firm as he or she does. Those in the operations department are not so lucky as the clients have no affinity to them. More importantly, those in the back office, while extremely important to the smooth running of the firm, are the ordinary people who would really struggle should they lose their job.The Have Your Say comments on the latest blog entries were very interesting, especially Mark from Bracknell who commented on the back office or operations staff. It is true that should a stockbroker lose his job, he will generally find another firm willing to take him (or her) as in most instances the clients strike up a personal relationship with their broker and will move firm as he or she does. Those in the operations department are not so lucky as the clients have no affinity to them. More importantly, those in the back office, while extremely important to the smooth running of the firm, are the ordinary people who would really struggle should they lose their job.
In the last few weeks Nissan and Newcastle Building Society announced redundancies in Newcastle, not a million miles away from me. Both had me thinking. Newcastle Building Society is clearly a finance firm and perhaps, a firm me or my colleagues, should we ever lose our job, would look to for employment.In the last few weeks Nissan and Newcastle Building Society announced redundancies in Newcastle, not a million miles away from me. Both had me thinking. Newcastle Building Society is clearly a finance firm and perhaps, a firm me or my colleagues, should we ever lose our job, would look to for employment.
Unfortunately, that is no longer going to be an option. I have relatives that work at the plant and I genuinely worry that should they ever lose their jobs, their skills would not be portable. There are no other car makers in the North East and any other car makers in the UK are certainly not hiring. I have various industry qualifications on my CV, generally provided by the Securities and Investment Institute (SII). This has gained me Associate of the Securities Institute status, something I am proud of and in my industry, is generally well thought of.Unfortunately, that is no longer going to be an option. I have relatives that work at the plant and I genuinely worry that should they ever lose their jobs, their skills would not be portable. There are no other car makers in the North East and any other car makers in the UK are certainly not hiring. I have various industry qualifications on my CV, generally provided by the Securities and Investment Institute (SII). This has gained me Associate of the Securities Institute status, something I am proud of and in my industry, is generally well thought of.
It suddenly dawned on me that while qualified in my current field, I have perhaps become too specialised. I enquired about a local NHS job recently, I discussed my professional qualifications. It was apparent that the person on the other end of the phone had absolutely no idea what I was talking about. All she could offer was that it was clear I was happy to learn and that was a good thing. This year, I will be taking two further exams, the fourth year I have completed industry exams. However, should I ever have to leave the industry, they may well not be worth the paper they are written on.It suddenly dawned on me that while qualified in my current field, I have perhaps become too specialised. I enquired about a local NHS job recently, I discussed my professional qualifications. It was apparent that the person on the other end of the phone had absolutely no idea what I was talking about. All she could offer was that it was clear I was happy to learn and that was a good thing. This year, I will be taking two further exams, the fourth year I have completed industry exams. However, should I ever have to leave the industry, they may well not be worth the paper they are written on.
Read Mark's previous diary entriesRead Mark's previous diary entries
Do you work in financial services? Have you had similar experiences? What is the mood like where you work? Send us your comments using the form below.
Name