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Thursday, May 24 2012

Business Blog: Back in black

Both of them cannot be right. You have banks claiming they are lending to just about every business that wants a loan, and businesses who claim that the banks are unhelpful, charge too much or just say no.

The banks seem to imply that they only say no or charge a lot to firms that are risky. Businesses say that perfectly good propositions are being turned down.

The one obvious thing is that banks are back in the black again and must invest more of their profits in enterprise. And they should slap a ban on bonuses. While the taxpayer still owns a huge chunk of some of them, and other private sector employees are enduring pay freezes, it is just not good enough for banks to shell out bonuses.

If they want to avoid being forever labelled greedy and fair-weather friends, they should say no to the bonus culture for several years.

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