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Banks have to act in the best interests of the shareholders. This duty of banks (ie companies) is the main problem. This duty has so many derrogatory effects in general it should be removed. The duty causes job losses, increased fees and spiralling costs (and that is just the banks). The duty encourages greedy behaviour. Deregulation of the banks had positive and negative effects which we are just now witnessing. It will get worse over time.
Having studied economics when doing my law degree I understand well the purpose of banks and how they operate. Deregulation was supposed to open up the banking system and to that end it has done this, but a side effect was the present mode of thinking.
While banks are paying heavily for the cost of raising capital, we the forced consumer are paying for this via fees and interest rates to offset the cost. Banks are doing what they have been given permission to do and nothing more. We voted in the people who gave the banks this power, we have to do something about it again.
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