Banks and mortgage lenders go back to business as usual
October 16, 2009
Only a year after being bailed out by the U.S. government, Goldman Sachs has announced massive increase in profits and extraordinary bonuses for its bankers in the U.K. Goldmans, a bank that was bailed out during the crisis using £6.3 billion of the tax payers money has announced that it has paid back its debt and now wants to get on with throwing £14 million at its employees to say job well done. David Viniar, Goldmans’ finance director said he was well aware that unemployment was sky rocketing and that many families were finding it hard to survive because of a recession caused by the excesses of the banking sector, but still felt the company should be fair to its staff by giving them millions of pounds in bonuses because they had been working really hard during a difficult time.
The banks who survived the recession have been shown that governments will use public money to bail them out if they get into trouble and so they are returning to business as usual. Lord Mandelson said that it was unacceptable.
The high street mortgage lenders are also displaying a stunning return to form. Nationwide is reducing interest charges and slashing legal fees in order to encourage customers to take out high risk loans. The lender is also rolling out its 95% mortgages again saying that it had always been offering them, just not advertising them so much during the downturn.
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