Senin, 02 Juli 2012

Business secretary Vince Cable tells investors to curb 'daredevil casino' traders

Business secretary Vince Cable tells investors to curb 'daredevil casino' traders

By James Salmon

PUBLISHED: 16:37 EST, 2 July 2012 | UPDATED: 16:37 EST, 2 July 2012

Business Secretary Vince Cable issued a call to arms for shareholders to curb the ‘daredevil’ behaviour of the UK’s ‘casino banks’.

In a speech delivered to the Association of British Insurers â€" one of the country’s most powerful investor groups â€" Cable said ‘investing in banking needs to be boring again’.

Cable's address came just hours after the Prime Minister announced a full Parliamentary inquiry into Britain’s banks amid growing fears of widespread rate-rigging.

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Cable said the Government could not tackle the banks alone.

He said: ‘Now every shareholder needs to make their views clear: that they want a secure, stable return when they invest in a bank, not a ticket to the casino.

‘The question “Why on earth are you doing this?,” needs to be heard far more often. It’s time for shareholders to stand up and demand safer behaviour from their banks.’

Shares in Britain’s biggest lenders plunged last Friday as investors feared the £290million fine of Barclays would be followed by more huge penalties.

Cable said: ‘It is increasingly clear that the management of many banks still don’t get it. They want to choose the high risk, high reward path â€" seeking high returns on shareholder equity â€" when it is vital for everyone else that they don’t.

‘And now we are learning that this daredevil behaviour, included taking blatant risks, once again to the detriment of the shareholder.’

This is just the latest attempt by Cable to encourage shareholders to keep big businesses in check.  

Last month the Business Secretary was accused of watering down reforms which will enable them to veto excessive pay packages.

David Cameron said yesterday: ‘The British people want to see two things. They want to see bankers who acted improperly punished and they want to know we have learned the broader lessons.’

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