Tory MP makes scathing attack on Iceland bank saver 'morons'
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Treasury select committee member David Ruffley says savers who chased high returns from the Icelandic banks are “morons” who “should have known better”.
Ruffley, Conservative MP for Bury St Edmunds, made the comments at a panel session on the Financial Conduct Authority held by The Financial Services Forum and Lansons Communications last week.
He said the regulator should clearly intervene in cases of product misselling but added there were instances of consumer detriment for which the consumer should take responsibility.
Ruffley said: “If you looked at an Icelandic bank and said ’the savings rate is up to three times what you can get in the UK’, you are a moron.
“Were you a moron to think that there was some magic the Icelanders had come up with, a tiny economy whose banks were offering fantastic savings rates? I think you were probably a bit dim. Something should have twigged and I think, in that case, buyer beware.”
Lifesearch managing director Tom Baigrie, a delegate at the event, responded to the comments saying: “It is very hard to call everybody stupid. There has to be a system which helps mitigate against even very clever people apparently being ’morons’.”
Plan Money director Peter Chadborn says: “It is worrying that someone in that position would have that view of the general public, particularly when he sits on the Treasury select committee.”
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Readers' comments (43)
Exasperated Me | 17 Mar 2011 12:26 pm
I might agree with him in principle but I would't display such extreme views in public. You have to ask if he is suited to his role!
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Sam Caunt | 17 Mar 2011 12:43 pm
In all this I believe that Local Government authority accountants were told by the Government to place money (reserves) with these banks because the interest rate was higher. If they did not, their central government grant was reduced by the amount of the lost interest! The last Government are therefore morons.....
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Anonymous | 17 Mar 2011 12:45 pm
Do Morons know what caveat emptor means?
No, that is why the fsa does not recognise it.
They want us all to live in a financial utopia where no consumer is disadvantaged, whatever moronic decision they may make. Stop all this political correctness and call a spade a spade or even a moron.
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Anonymous | 17 Mar 2011 1:02 pm
Seem to remember a similar comment when the Bank of Crooks and Commerce Int'l went bust. So true, but perhaps a little imprudent in public. But then people nowadays don't seem to like anything at all which shows them up as being numptys.
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Stuart Burkin | 17 Mar 2011 1:03 pm
.... suppose it takes one to know one. Must admit to feeling sorry for his constituents!!
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Anonymous | 17 Mar 2011 1:07 pm
At last a politician tells the truth! Mr Ruffley is dead right.The higher the yield the higher the risk.
Our Councils who held money with the Icelandic banks should also be considered morons particularly for not spreading the risk and opening bank accounts with a variety of banks.
The FSA should wake up and smell the coffee -you cannot legislate against idots chasing yield.
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Peter Turner | 17 Mar 2011 1:10 pm
What do you expect?
After all the current regime was brought in by Gordon!
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Russell Vidler | 17 Mar 2011 1:11 pm
I thought Icelandic Banks were allowed by the FSA to trade in the UK because they were made to jump through countless flaming regulatory hoops before being allowed to set foot into the business for profit arena.
Wait! Sorry, that's IFAs isn't it? Different rules for banks. I'll get my coat.
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JulieB | 17 Mar 2011 1:17 pm
@ Sam Caunt
I was just about to say a similar thing, that Local Councils were told by the last government to put deposits in these accounts.
They have lost Millions in the process not to mention Charities etc, which were considered corporate accounts, which didn't qualify under the compensation schemes.
Also I'd like to remind this MP that many of the websites that offer free financial advice to the public were promoting these asccounts as "Best Buys"... Yet there's been no accountability for this advice at all.
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terry | 17 Mar 2011 1:18 pm
Calling the general public "Morons" shows how out of touch this guy is. They were allowed to trade in the UK by the FSA, therefore to the general public they were ok. Not everyone is a priveliged as he is about knopwing everything about everything. He really is creating the right empathy with his constituants. I would not like to be hime down the pub on a Saturday night surrounded by his "Morons" Of course he is so clever that he has never made a mistake which has backfired on him.
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