Back from holiday last week, things are no better this week, DOW futures down 300 for their opening 2.30pm our time.. A steep drop is forecasted on CNBC USA TV channel... maybe another bad week ... will see.... Global recession is now being mentioned .... Hopefully just rumours
I am not happy about the growing concerns of the Migration problems, then the terrorism issues and China being an unkown but for how long.... The melting pot of these points and others may well be a bigger concern in the near future.. A lot going on in the world at the present time and euro land looks like having a big growing migration agenda to deal with for years to come.. Moving a mass of people creates many problems, of housing, food, jobs, and financial costs to support people.. And medical needs .. And so on... Just think of a million extra cars on UK roads in the next year and the impact of getting around and parking .. There is a limit to everything in life before big quick migration changes impacts on more a more people.. ..
Wether markets and RBS will reverse its fortunes in October to any end of the year.rally ... One can only hope ... Or it will be a poor year indeed.. Uncertainty wins everytime...
I think if the manager has followed his company's overseeing or checking procedures properly and that the chancer has managed to evade them, the manager should then not be penalised.Instead should work with the company to improve the procedures. Also the company should ask itself has chancer acted out of greed or self preservation because of unfair targets. If found that the managers checking procedures should have prevented the issue, then he would need to be looked at and also his superiors to see why he wasn't supervised properly. Apart from Banks or individuals earning extra or keeping their jobs through malpractice their customers can pay a price.Historically. Having a mortgage or loan they could not afford investments that did not perform as promised and PPI that didd not provide the protection that customer thought was there. The other danger I would imagine that the managers bonus could be linked to the performance of his subordinates which could mean he or she could be influenced. Perhaps an independent audit arm is needed to undertake random and effective checks at all levels.
From a BOD perpective it's understandable, but then if there's no skeletons should be no worries. More to the point is from a shareholders perpective. As a shareholder I want to know now what's left in the cupboard. I don't want problems drip fed just because the BOD are protecting their backsides. This is the problem these days - the interest of managers seems to come first.
Your last sentence pretty much sums it up and not just with the banks . I guess there must be many decent honest managers who are let down by some of the chancers working under them . Not sure if holding them responsible for the actions of others would be fair , depends what you mean by appropriate action . I certainly agree that a review of current practices and systems would be a help . Might not seem like it but I think this is currently underway and has been for some time .
It is a good point -it just seems that as quickly as one problem emerges and is dealt with then another one appears - a constant drip feed which does not help the Bank rebuild its reputation. At the very least I think there should be a top to bottom examination of current practices. With each manager certifying that his or her subordinates are compliant. If going forward there is evidence of non compliance etc then any who certified the problem area should face appropriate action - this would give top to bottom responsibility. Sadly will not happen here or else where because many executives struggle to believe that reward and responsibility should be linked.
As you say, with the Divi in and the government out the SP would behave totally differently. But even if future litigations weren't a factor I think that the SP might sulk for a long time before gaining a fraction of it's prevoius glory. Aside from the numbers, Bank bashing is still a popular passtime for politicians and hippies. It's got so blurred for me it's hard to work out what's happening tomorrow, let alone in fives years. I bought in four years ago for a recovery and I'm still standing on the same spot. Though I did much better with Lloyds. The buggers have changed the rules, and so agreed, long term patience is required.
I suppose it is HALFMISTS' Christmas dinner I am most looking forward to! In terms of the SP I piled in heavily again a few weeks ago, some of that is already in profit and my average isn't far off being passed so, really I have no great worries what the SP is at Christmas as long as it keeps going up. My 'cup half full' view allows the possibility of 400p. The World has to keep answering its problems and I am sure it will.
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