The banks or our clients: Where do our priorities lie?

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We all have bad dreams in which we wake at the last minute just before tragedy strikes. Id be surprised if any of these have recently concerned the failure of the banking system as we know it, but the prospect is becoming a bigger part of waking reality each day. Last week I was talking to a client hands free of course whilst on the way to work. He suggested that if the Bank rate fell it might be a good thing. I wasnt so sure. What with inflation on the march, the economic situation (excluding the credit crunch) did not appear favourable to such a cut, and from a business perspective if the LIBOR disparity did not return to normal this would not appear to help UK businesses.

By lunchtime the UK along with five other jurisdictions had cut its rate by half a percent and I was left to eat hu...

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By JSJ54
04th Nov 2008 10:22

Mine too James
Maybe we're just old fashioned though!

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31st Oct 2008 16:18

My priority is my clients' survival
I think that Nick may be being a touch naive ! He became a partner in 1993 so I presume that like all people who have only been in business for the last 15 years or less, there has never been a period in his business life that hasn't been a period of growth.
By aceeding to increased bank rates and charges, and certainly even more requirement for security (and as the value is dropping the quantity required will be increased) that the banks will almost certainly require, does he honestly believe that our clients should be grateful ?
The banks brought it upon themselves, Overpaid egos did deals that were unsustainable.
Who is paying for those errors, taxpayers.What are Nick's clients? (hopefully) taxpayers.
So Nick wants his clients to pay twice for the bankers errors.
It is our job to get the best deal for the client, not accept that the clients will have to have their legs lifted for a couple of years whilst the banks repair their Balance Sheets at our clients expense. "if the bank does misbehave" he says, no doubt if the bank does, it is because they will have been allowed to.
He states that there should be "less spending and a lot more saving" Saving can only come from profits generated, and if the bank have jacked up their costs, there will be less profit, hence lees saving.
So should we all put these savings into pension contributions and watch them go south as well ? ( ask a Baby Boomer how he's feeling about pensions at the moment, especially if he was originally with Equitable) or put the savings into the highest interest paying bank (but is it a safe one?)
He states "for the time being let's consider where our priorities lie" mine are with my clients, not trying to make friends with Bankers.


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