Financial institutions in the UK are treated based on double standards as different regulations seem to apply to those firms deemed “too big to fail,” says an analyst, Press TV reports.
“It seems we have a [financial] regulator that has one rule for banks and one rule for other financial institutions,” Simon Dixon, author of “Bank to the Future,” said in an interview with Press TV on Tuesday.
Dixon stated that major banks have rules of their own so disciplinary “threats (from regulators) are empty threats and nothing that actually is bestowed upon them is taken as a serious threat because they are not allowed to fail and they are always bailed out.”
He added that, “If you’re an honest financial institution that doesn’t have the large power of these large banks, then the threats of the regulators is very big.”
The comments come following the announcement that despite profits amounting to two billion pounds for the half year in 2013, Britain’s Lloyds Banking Group plans to cut 9,000 jobs and close tens of branches over the next three years as part of cost-cutting measures.
Lloyds Banking Group was founded in 1765 and is the fourth oldest bank in the UK.
Lloyds has benefited from taxpayer bailouts and state subsidies running into the hundreds of billions of pounds during the global financial crisis.
Dixon concluded by saying, “We should be treating these banks exactly as a company that is poorly performing… and that’s fine, but why we’re actually bailing these banks out in the first place is the major problem.”Simon Dixon