Adair Turner: Bankers 'no longer in denial'

Lord Turner took charge of the FSA just as the financial world fell apart. As he prepares to leave the regulator, the man who once described banks as 'socially useless’ tells Kamal Ahmed that behaviour has improved, why the bail-out was right, and reveals his next project - a book .

When Lord Turner arrived at the Financial Services Authority as the new chairman in September 2008, the Royal Bank of Scotland and Lloyds TSB were hanging on by their fingertips in the private sector, nobody had heard of quantitative easing, and Bob Diamond, the chief executive of Barclays, had just announced an audacious bid for the investment bank and trading divisions of Lehman Brothers – a bust bank.

iandi: Took you a whole career to figure out that a bank with 30-50 times leverage is an already failed bank propped up with state support.  At least you get the point that the "Big Bang" was merely a ponzi scheme for the 1%, however you let the hedgies and the shadow banking system still operate ?

grannytaxed:  The torys say it was all Labours fault, just because the torys were in power does not mean to say they are to blame. With the torys its always someone else to blame like the poor, single mothers, etc etc.

chaswarner:  Duh, they weren't in power. That would be Gormless McBruin, B.Liar and Balls up, you eedjut.

elephantsittingonyourhead: 'The torys say it was all Labours fault, just because the torys were in power does not mean to say they are to blame. With the torys its always someone else to blame like the poor, single mothers, etc etc.' You are Gordon Brown and I claim my £5.

ataxpayer:  Adair Turner: Bankers 'no longer in denial' Does that mean they admit to being guilty of fraud on a massive scale or are they still in denial on that point. Are you also in denial for allowing the fraud to take place? Are you also in denial for not prosecuting or enforcing laws that  exist  supposedly to  protect us ? Are you corrupt like the system you oversee?

TruthDestroysWorlds: Bankers 'no longer in denial' So, they now accept that it is their actions that have created the 'terrible world' that we now live within? This world of misery and unhappiness (of debt). That it is their constant supply of 'funny money' that actually allows for 'perpetual war' in the middle east. That it is their 'funny money' which pays for all of the armourments which are now being use in order to kill many millions of innocent people. That it is their constant manipulation of the markets which has led to many millions now having pensions which are now virtually worthless. That it is their greed that has led to many millions of honest, hard working people now earning nothing in the way of interest on their savings. The moneylender has historically been known as a parasite, as the dreggs of our society, and now it is no different. Only now, they also have the deaths of many millions now hanging around their scrawny, pathetic necks. Please watch this, this is a small insight into the world that has been created by the actions of the moneylender - A truly terrible state of affairs.

deathbybankster:  TDW, That really is an excellent post.

TruthDestroysWorlds: A sad reflection of our society. A place where human life matters not. Not as much as money anyway.

Smell Da Quoffee: TruthDestroysWorlds I agree, clearly bankers are still in denial. The smokescreen in the article above is pretty insulting to intelligent switched on people. The thing is so many people do not understand what the banks are doing. They think its complicated but many of the principles are simple and straight forward. My feeling is that banks treat us in the same way conman treat their marks. The thing is our whole world is run on their systems and if anyone reading these posts wants some more understanding explains it pretty well (obviously TruthDestroys already has this knowledge). As for the video link, I guess there needs to be some explanation on what wars have to do with banking. This obviously is a big topic deserving of more time than I can allocate to it right now, maybe somebody else can comment ? But what I will say is that banks are heavily used when a country has been invaded to provide debt money for rebuilding. That debt typically enslaves the people of that country. Also dont forget the current global economic meltdown has been caused by banking. Banking is full of sociopaths and psychopaths, we need protection. And TruthDestroys, congrats on a truly excellent post.

TruthDestroysWorlds: My point was that many years ago wars were limited in their duration due to the amount of money that was then available. Being of course, that money was then real/tangible. That it then had some sort of basis in reality. Now though, what with the fact that money can literally be created at the mere push of a few keys on a keyboard. Both the amount of money now available, and the length of the wars which that money finances, are seemingly without end. Hence exactly why the war in the middle east has already lasted well over ten years. Thank you, and take care.

o-m-g-deregulation: Let me tell you straight Mr Turner !!! We need to set an example.  Round 20% of them up and lock them in jail for about 5 to 20 years.   It is high time that our UK lazy police and judges got off their arse's and started putting some of these toxic fraudulent derivative banksters, credit default swap swindlers, LIBOR criminals and all their friendly narcoleptic regulators in jail !!.  IT HAS TO HAPPEN MR TURNER !!!   And stop that Merv King walking away from his job on his terms… 

bsmsnudge: Is it me or does anyone else find these banking and power types to be really creepy and unpleasant? There seems to be something fundamentally wrong with the type of people in power around the world, their own self love and narcissism is extraordinary and sickening and seems to be getting worse. The situation in Cyprus at present with bankers and their political whores about to grab a chunk of savings, with nary a toss or care about those affected, speaks reams about the sociopathic nature of their mindset.

Mark Clement: A bunch of narcissistic psychopaths.

bsmsnudge: Interesting that it only affects 1% according to the Wiki bit.

Mark Clement: Psychopathic behaviour is on a continuum.  Only about 1% are that extreme and present for treatment, also they think they're perfect  so they never present.  A recent american study found 21% presenting with narcissistic personality indicators. This sort of behaviour is on the rise because we now have a society and media that inculcates this mindset; one of the downsides of the death of ideaology I'm afraid.

cuttywren: The FSA were a useless bunch of clowns…and the nest of crooks and pirates in The City got a free hand to blow up our economy…and keep the money…

chaswarner:  Who the hell would believe a word 'Red' Adair says? Another Common Purpose stooge.

TruthDestroysWorlds: Legalised criminality.

M P Jones: Absolutely. Libor - financial fraud; "misselling" - read financial fraud. It is time the legal system caught up with these bandits. They must have their day in court instead of paying corporate fines - and be sent to jail if found guilty. A legal system seen to be totally impotent in the face of powerful players is not a good support for democracy!

Sal20111: The bankers were never in denial.  They're fully aware of the gravy train they've got going for themselves. The banks do not operate according to the principles of capitalism.  If they suffer massive losses, the taxpayers have to pay the bill.   That's against the basic profit and loss principle of capitalism - how profits and losses shape markets, who wins and loses.  So effectively the bankers enjoy the best of both worlds: state protection through its force over taxpayers and the best of private sector salaries and bonuses.  Nothing complicated to explain in a new book. The banks are disguised as private sector corporations so they can rake in the dosh for their shareholders and managers to the hilt, but actually they're state underwritten organisations.  And they have their own money printing machine, the Bank of England/Fed/ECB, which can print money to buy stuff from them when and as needed.  No other private sector industry has such a powerful rescue institution dedicated to it.  An institution that is not directly answerable to the public, but can effectively water down the wealth and spending power of everyone. The political parties in government, and the bureaucrats, do not want to lose their spending power and that depends on borrowing from the banks in the current system.  Since all the politicians are advised by bankers, their pet economists, and acolytes, they don't get around to changing the system.  The banking industry has the state in its control.

mistermurry: In denial? They are still broke. They want more of our hard earned. They still pay stupid amounts of pay and bonus. They have only learned how to bleed the host more and more. Host is dead on his feet now, wont be long. How long before Cyprus 'type' Bankster theft comes to Britain proper.

jbsummers: Lord what ever your name is, face facts the whole edifice you come from, your whole background is corrupt, you are worst than any street mugger, as a street mugger admits they are a crook, but you and your kind hide behind ermine portraying the fantasy that you have some kind of honour, you have none, you grew up despising the people thinking your better by birth. As a tradesman that has been in every home type and and seen every culture that this country has to offer, i can tell you that you are one of the worst, you have the power to help your fellow man but can only see your pocket and class, you are a virus on the country, should be removed and sterilised. I would sooner talk to a street mugger than you as the street mugger is more honest. You and your kind are the problem, the cure is to remove you.

theworldhasgonemad: Splendidly put, bravo.