Jessica Fino 16 Aug 2018 04:08pm

UK public distrust banks 10 years after crisis

The majority (66%) of the British public do not trust banks to work in their best interest

Moreover, 72% believe banks should have faced tougher penalties for their role in the 2007/08 financial crisis and 63% fear they may cause another one, according to a survey of 2,250 people.

The survey, commissioned by Positive Money and carried out by YouGov, comes ahead of the 10th anniversary of the collapse of Lehman Brothers on 15 September 2008.

Fran Boait, executive director of Positive Money said, “Despite the financial sector’s complacency, people know that nothing has really changed since the last crisis. As in the run up to the 2008 crash, banks are still making most of their money from gambling on property and other financial assets, paying themselves huge bonuses while things have got worse for everyone else.

“The 10th anniversary of the crisis must be an opportunity to change the banking sector so it works in the best interests of society. This may be the only way to avoid another financial crisis, that so many Britons fear.”

However, some banks are still dealing with the consequences of their actions before the financial crisis hit.

Last week, HSBC announced that it had settled an investigation with the Department of Justice (DoJ) for $765m, related to residential mortgage-backed securities it sold between 2005 and 2007.

The Royal Bank of Scotland paid $4.9bn to the DoJ in May to close an investigation related to the same mortgage-backed securities deals, and Barclays agreed to pay $2bn in March. Deutsche Bank paid $7.2bn in 2016 and JP Morgan paid $13bn in 2013.