The end of 2015 saw the sudden discontinuation of not just one, but three, FCA probes. The purpose of these examinations had been to find out how the PPI mis-selling banking scandal, as well as the manipulations of Libor and Forex, were allowed to happen. In particular, whether incentives such as pay and promotions contributed to the host of wrong-doings reported.
The ending of these probes has caused some speculation as to whether the Chancellor George Osborne gave in to pressure from the banks by asking the FCA to close their investigations. Below are some of the arguments that have been put forward as to why the Chancellor may have had his decision influenced.
The Government Needs to Sell State-Owned Banks
During the financial crisis, some banks had to be bailed out by taxpayer’s money, with the government taking majority stakes in those banks. Now, seven years on from the 2008 collapse, the government is still in ownership of Lloyds and RBS. This is not a position the government wants to be in. At some point soon, it will be looking to sell its majority share in both banks back into the private sector. From this angle, it’s understandable that George Osborne would want to build stronger relationships within the banking industry. Putting an end to the probes would definitely help with that.
Threats to Move Elsewhere
The banking industry is vital to the British economy. That’s why threats from within the industry to move offshore, or to other countries, need to be taken seriously. If we cast our minds back to the beginnings of 2015, you might be able to recall Osborne’s decision to place increased levies upon banks. These didn’t materialise after a threat by banks to move elsewhere. This shows the weight the banking industry carries with this threat, and the depths Mr Osborne is willing to go to keep them happy.
To Create More Money for Investment
A huge amount of money has had to be paid out by the financial industry to remunerate the people they have wronged. The problem from the Chancellor’s perspective is that the money the banks are paying back to people is then not being invested into the economy to perpetuate growth.
Here at Enjay Claims, we believe that the financial industry should be held fully accountable for the injustices that took place during the PPI scandal. It’s disappointing that these probes have been ended, but we also understand the need for our industries to move on from the scandal in order to make a profitable future.
However, it’s not too late for you to receive the compensation you deserve. If you feel that you have a right to claim for the mis-selling of PPI, don’t hesitate to contact us. You can call us on Freephone: 0800 612 7958or by email on :firstname.lastname@example.org.