How many more times are we going to have banks letting down the people of Britain and yet they get away with it without any consequences?
Part stated backed Lloyds Bank has just just declared a £2.4 billion half year profits for this year, 2016 and at the same time announced a closure of 200 branches and shedding of 3000 jobs. If this is not a betrayal to people of Britain, then we need to think again. What is ridiculous about this bank is the fact that the country came to its rescue during the 2008 financial collapse bailing it out with a sum of £20.5 billion of the British tax payer’s money.
Many of us have not forgotten Lloyds bank completely disastrous acquisition of HBOS that brought the bank to it’s knees ready for a collapse. Gordon Brown rolled a rescue plan to save all the banks involved at the tax payers cost. The. Then Lloyds TSB Group was saved and renamed Lloyds Banking Group with the HM Government took a 43.4% stake.
Lloyds Banking Group Timeline:
April 2013 saw the group announce that, Lloyds TSB branches in England and Wales would combine with the branches of Cheltenham & Gloucester with the Lloyds TSB Scotland to for, a new bank. This was renamed TSB Bank Plc, making it a a separate division that was floated on the London Stock exchanged and later acquired by Banco Sabadell. The group became healthy with the remaining business of Lloyds TSB returned to the Lloyds Bank name.
December 2013, Lloyds Banking Group was fined £28 million by the Financial Conduct Authority for “Serious Failings”. This was as a result of the bonus scheme that pressured staff to hit sales targets or risk pay cuts and demotion. As usual Lloyds bank paid the fine and apologised to it’s customers.
July 2014, U.S. and UK regulators fined Lloyds and some of it’s subsidiaries £218 million for it’ part in the global Libor rate fixing scandal and false reporting.
May 2015, the government sold more than £500 million of the Lloyds shares recovering half of the money paid towards the bail out.
July 2016, Announcing £2.4 billion half year profits, 200 branch closures and axing of 3000 from workforce. Blames the the cut in interest rates and Brexit for the cuts and forgetting that they have been streamlining for a few years before Brexit.
What’s sad here is that the fat cats like the CEO and the board of directors will still be paid over the top bonuses whilst the families affected by this staff cuts will struggle to make ends meet and probably struggle to feed their children.
The irony is that Lloyds bank will get away with this new action regardless of how much more money they make in profits. We will possibly see more staff cuts and more economic hell breaking loose in future with only small businesses and the poor suffering.
This is the ultimate betrayal of the British taxpayers despite being stakeholders in the bank.