The Barclays bank crisis over the LIBOR rate scandal has been the news headlines for the last week. The manipulation of the Libor rate has obviously affected peoples mortgages and has created something of a crisis for both Barclays and the other banks. The scandal has lead to the resignation of Marcus Aigus and Bob Diamond from Barclays bank.
But quite frankly we have had these banking scandals before and not much has been done as a result of these previous scandals and I do not expect much to happen as a result of the Barclays Libor scandal. I thought the debate in the House of Commons was appalling and the real issues were not discussed.
In fact this in the main point of this blog the real issues of the banking crisis are not being discussed .Firstly the theft of peoples savings by paying people a rate of interest below the rate of inflation.Secondly the great difficulty people have nowadays in being able to get mortgages to buy property and also loans to start their own small business.
What is clearly needed is new types of banks that work for the people. Both community and state owned banks. Until we get these new type of banks the banking crisis will not go away.