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Public do not trust banks as Lehman anniversary nears

RBS-Building-2012-700x450.jpgA majority of the public do not trust banks and think they were not held accountable for their role in the crash a decade ago according to a survey.

A poll of 2,250 adults by YouGov on behalf of campaign group Positive Money shows how badly the legacy of misbehaviour has damaged the reputation of banks.

It also underscores the work banks still need to do to repair the reputation of the sector as two-thirds of the public do not trust banks to work in the best interests of society.

Earlier in the week the Royal Bank of Scotland said it will pay its first dividend since the financial crash as it agreed to pay $4.9bn (£3.6bn) to US regulators to settle claims it misled investors.

The US Department of Justice said the penalty is the record fine imposed on a bank for misconduct leading up to the financial crisis.

The fine was agreed in principle in May.

RBS has been trying to move on from allegations by US authorities it misled investors in underwriting and issuing residential mortgage-backed securities by understating the risks behind many of the loans.

These loans were underwritten and issued between 2005 and 2008, which the Department of Justice said generated hundreds of millions of dollars for the bank.

September marks the tenth-anniversary of the collapse of Lehman Brothers which was a watershed moment in the crisis.

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Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. …and the public are right. Banks, like any other publicly owned company have a legal obligation to maximise returns to shareholders. Senior employees then tend to add a very strong personal obligation to maximise returns to themselves.

    If society wants banks to behave differently it needs to regulate them differently – with more personal and direct accountability. This is beginning to appear, and time will tell whether it is effective. More time after that will pass before trust is gained.

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