I find myself on the horns of a dilemma over the very recent announcements concerning the performance of the banking sector. Like most people I am only too happy to condemn the selfish behaviour of the banking fraternity and blame them for the current recession.
It seems a no–brainer that they should be taken to task for making obscene payments by way of bonuses for careless and excessive short–term risk taking. However, when viewed with a little more logic, the return of profitability for the banking sector must be a pre–requisite for the ending of the current crisis and a return to economic prosperity for us all.
So the recent results indicating a much improved performance by the banking sector should be welcomed. Particularly if the improved performance is accompanied by a willingness on behalf of the banks to start lending to businesses and individuals at rates that are affordable.
Given the level of tax take that the Government formerly received from the financial sector, a return (albeit at more sober levels) to greater rewards for bankers I guess would be less painful than a decade of severely reduced public expenditure and big tax rises for us all.