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Bad Banks: Mistakes, Misselling, Misbehaviour and the Next Global Crisis
The inside story of the continuing global banking crisis.
Written by an award-winning financial journalist, Bad Banks is an unflinching and gripping account of the problems and scandals that continue to bedevil the world's banking system some five years after the credit crunch. It follows the fortunes and misfortunes of individual banks, from RBS to Lloyds. It exposes instances of misselling, money laundering, interest rate fixing and incompetence. And it considers the bigger how the failings of the world's banking system are threatening to undermine our future economic security. Alex Brummer, the City Editor of the Daily Mail, has spoken to all the major players, from HBOS's Andy Hornby, to former Governor of the Bank of England Sir Mervyn King, to the ex-Greek permier Lucas Papademos. His book is an insightful -- and terrifying -- account of institutions once renowned for their probity, now all too often a byword for incompetence, and worse.
Written by an award-winning financial journalist, Bad Banks is an unflinching and gripping account of the problems and scandals that continue to bedevil the world's banking system some five years after the credit crunch. It follows the fortunes and misfortunes of individual banks, from RBS to Lloyds. It exposes instances of misselling, money laundering, interest rate fixing and incompetence. And it considers the bigger how the failings of the world's banking system are threatening to undermine our future economic security. Alex Brummer, the City Editor of the Daily Mail, has spoken to all the major players, from HBOS's Andy Hornby, to former Governor of the Bank of England Sir Mervyn King, to the ex-Greek permier Lucas Papademos. His book is an insightful -- and terrifying -- account of institutions once renowned for their probity, now all too often a byword for incompetence, and worse.
352 pages, Paperback
First published March 6, 2014
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Displaying 1 - 7 of 7 reviews
October 15, 2015
Bankers, loathe them or hate them, they are a profession that has had a spectacular fall from grace. Once the darling of the man in the street their contribution the economy was lauded by politicians and the like.
Except that all that glitters is not gold...
Starting with that most ethical of banks, the Co-Op he dissects the problems that beset them. It had been run by the Rev Paul Flowers, now known as the Crystal Methodist, for his drug and sex habits. Even though he had managed to acquire a couple of banking qualifications, he was ill prepared for the running of a multi million pound banking business. In terms of scale it was small compared to other banking scandals, it still had the essential elements of failure.
He moves onto the scandals that engulfed JP Morgan, RBS, Barclays and Lloyds. Each chapter is dedicated to the problems, people and issues that affected the bank in question. He is scathing towards the regulators and politicians that claim to have tightened regulations and declare that ‘lessons have been learned’, because every time since there has been another event or situation that needs to be resolved; normally by a government stepping in to bail out the affected bank. He peer through the curtains at the Libor rate, explaining how a cartel of banks changed the borrowing rate, affecting how much we pay on loans and writes about the PPI insurance that we were sold but didn’t need.
This is not just a UK and American thing wither. The Dutch banks and insurance companies required large cash injections just to keep their heads above water and the normally conservative HSBC was a conduit for money laundering from Mexico. But the biggest of the all was the credit crunch. Greedy banks leant lots of money to people in America with very low initial interest rates, after theses ended the repayment rose dramatically and people started to default on their loans. Not great for all involved, but they loans had been wrapped in a variety of financial packages and given AAA ratings by the credit agencies and sold off to anyone as solid investments. They weren’t. As the defaults started to roll in so the money dried up and banks folded or were bailed out by their central banks.
The amount of detail in this book is quite astounding, and Brummer manages to explain what happened with clarity and not descending into jargon. The point that he makes most is that the claim for better regulation and control is a hollow one at best. Some banks have tried to change their cultures, but the financial industry still has greed and deceit at its heart, always on the look out for the fast buck and the loopholes. I think that we are going to have to have another major crisis before the correct systems are put back into place, and that the regulators are given the ability to punish offenders properly. Terrifying reading.
Except that all that glitters is not gold...
Starting with that most ethical of banks, the Co-Op he dissects the problems that beset them. It had been run by the Rev Paul Flowers, now known as the Crystal Methodist, for his drug and sex habits. Even though he had managed to acquire a couple of banking qualifications, he was ill prepared for the running of a multi million pound banking business. In terms of scale it was small compared to other banking scandals, it still had the essential elements of failure.
He moves onto the scandals that engulfed JP Morgan, RBS, Barclays and Lloyds. Each chapter is dedicated to the problems, people and issues that affected the bank in question. He is scathing towards the regulators and politicians that claim to have tightened regulations and declare that ‘lessons have been learned’, because every time since there has been another event or situation that needs to be resolved; normally by a government stepping in to bail out the affected bank. He peer through the curtains at the Libor rate, explaining how a cartel of banks changed the borrowing rate, affecting how much we pay on loans and writes about the PPI insurance that we were sold but didn’t need.
This is not just a UK and American thing wither. The Dutch banks and insurance companies required large cash injections just to keep their heads above water and the normally conservative HSBC was a conduit for money laundering from Mexico. But the biggest of the all was the credit crunch. Greedy banks leant lots of money to people in America with very low initial interest rates, after theses ended the repayment rose dramatically and people started to default on their loans. Not great for all involved, but they loans had been wrapped in a variety of financial packages and given AAA ratings by the credit agencies and sold off to anyone as solid investments. They weren’t. As the defaults started to roll in so the money dried up and banks folded or were bailed out by their central banks.
The amount of detail in this book is quite astounding, and Brummer manages to explain what happened with clarity and not descending into jargon. The point that he makes most is that the claim for better regulation and control is a hollow one at best. Some banks have tried to change their cultures, but the financial industry still has greed and deceit at its heart, always on the look out for the fast buck and the loopholes. I think that we are going to have to have another major crisis before the correct systems are put back into place, and that the regulators are given the ability to punish offenders properly. Terrifying reading.
November 4, 2019
Alex Brummer chronicles in fascinating detail the excesses committed by unscrupulous and greedy bankers at the cost of the ordinary tax payer even post the roiling financial crisis of 2007-09. "Bad Banks" concentrates on all the major financial institutions in the United Kingdom which engaged in murky banking practices, consummated shaky deals and exhibited unrestricted profligacy when it came to doling out bonuses euphemistically termed "employee compensation".
Even though not vitriolic or polemical in his denouncement, Alex Brummer spares no details and takes no prisoners in an unbiased indictment of the mavens of High Street. This renowned chronicler of the world of finance dissects each major scam of the likes of the manipulation of the London Inter Bank Offer Rate ("LIBOR"); mis-pricing of Private Property Insurance ("PPI"), manipulation of the foreign exchange markets and the infamous London Whale scandal that had JP Morgan scurrying for cover, courtesy its notorious investment banking arm. But the icing on the cake in so far as the litany of unethical woes go, is reserved for the top brass of the City Co-op Bank. This so called ethical set up was led by Rev Flowers a Methodist practitioner who was ultimately embroiled in a shameful scandal involving homosexuality, addiction to veterinary drugs such as ketamine and financial flagrancy.
"Bad Banks" has in its list of characters irascible and megalomaniac chief executives who set up a Director's kitchen in a sprawling set up so that scallops could be delivered unfailingly and on the dot at the working table, spineless authorities whose toothless organisation was sarcastically known as the "Fundamentally Supine Organisation" instead of Financial Services Authority; investment bankers who armed with PhDs in applied Mathematics wreaked havoc from the cozy shelters of glass and steel investment banking structures and hapless taxpayers who saw their wealth erode and sacrificed at the altar of banker's greed.
"Bad Banks" is both an eye opener as well as a timely warning to every concerned stakeholder to keep in check the untrammeled appetite for destruction of reckless, immoral and egregious bankers.
Even though not vitriolic or polemical in his denouncement, Alex Brummer spares no details and takes no prisoners in an unbiased indictment of the mavens of High Street. This renowned chronicler of the world of finance dissects each major scam of the likes of the manipulation of the London Inter Bank Offer Rate ("LIBOR"); mis-pricing of Private Property Insurance ("PPI"), manipulation of the foreign exchange markets and the infamous London Whale scandal that had JP Morgan scurrying for cover, courtesy its notorious investment banking arm. But the icing on the cake in so far as the litany of unethical woes go, is reserved for the top brass of the City Co-op Bank. This so called ethical set up was led by Rev Flowers a Methodist practitioner who was ultimately embroiled in a shameful scandal involving homosexuality, addiction to veterinary drugs such as ketamine and financial flagrancy.
"Bad Banks" has in its list of characters irascible and megalomaniac chief executives who set up a Director's kitchen in a sprawling set up so that scallops could be delivered unfailingly and on the dot at the working table, spineless authorities whose toothless organisation was sarcastically known as the "Fundamentally Supine Organisation" instead of Financial Services Authority; investment bankers who armed with PhDs in applied Mathematics wreaked havoc from the cozy shelters of glass and steel investment banking structures and hapless taxpayers who saw their wealth erode and sacrificed at the altar of banker's greed.
"Bad Banks" is both an eye opener as well as a timely warning to every concerned stakeholder to keep in check the untrammeled appetite for destruction of reckless, immoral and egregious bankers.
March 1, 2022
This was a strong book.
Not only was it extremely informative, it was also quite disturbing, shocking, and infuriating at times.
Would recommend to learn more about both the previous financial crisis and to also better understand the current crises - like the housing crisis and other important issues.
4.7/5
Not only was it extremely informative, it was also quite disturbing, shocking, and infuriating at times.
Would recommend to learn more about both the previous financial crisis and to also better understand the current crises - like the housing crisis and other important issues.
4.7/5
December 26, 2017
Interesting book that gets into how banks have operated both before the financial crisis and after and more importantly their interactions with stakeholders. The author uses the chapters to showcase banks in America, London, Europe, and global behemoths. In London a guy was made CEO of a bank even though he had no previous banking experience (he was a pastor) but who had to resign after waving fans of cash around for drugs and a sex orgy. One bank buying operations in Mexico found it the preferred bank of the drug cartels and ended up spending millions just trying to put basic compliance in place. One bank featured in the book was the preferred bank for a political party in power. Will there be a next banking crisis? Absolutely. This book shows examples of why history will repeat itself...
July 26, 2020
A politically correct rehash of the 19th century anti-Semitic propaganda in Europe.
January 12, 2015
Well written and well researched - some of the anecdotes are absolutely shocking in terms of how 'bad' some of the banks can be.
July 24, 2015
good through on how the UK faced and dealt with the financial crisis
Displaying 1 - 7 of 7 reviews