PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
Rocco Strydom
 
Comments: 0
Article views: 593
 
 
 

Banking scandal comes at worst time

17 February 2017, 13:57

The latest banking scandal to rock our political and economic climate, couldn’t have come at a worse time. If you believe in conspiracy theories, a case can be made for the strategic leaking of information to further political agendas, but more on that later.

The news is out there, 17 banks including three prominent South African banks have been handed over to the competition commission to investigate collusion. It is alleged that they used (among other things) fake trades to manipulate currency exchange rates and could have impacted market volatility. It is important to note that nothing has been proven yet and while the competition commission is confident of a prosecution, a full investigation and report still has to be made. Keep this in mind as my jumping-off point.

If we are honest with each other, ethics and the banking industry don’t mix well. What does Wells Fargo, JP Morgan and even our local institution, Absa have in common? They have all been marred by scandals over recent years and it seems that everywhere a shady buck is to make, they are somehow involved. History then makes it very hard to argue that they are inherently important to economic stability, when some banks go out of their way to be disruptive. I don’t think anyone will be surprised if evidence is found to prove the allegations, but what is more important, is the political and economic narrative.

In recent months, financial institutions have come under attack from political parties. From the big local banks to the treasury and the sacking of the then finance minister Nhlanhla Musa Nene, that led to the state capture report. The timing of this incident, seen in this context, becomes so suspicious that even in the lack of clear evidence, one can’t help but feel that it is an orchestrated plot to pave the way for a state-owned bank. With any good theater, timing is key and the call came early after the news broke under the guise of “benefiting the ordinary citizens” that have been “wronged” by financial institutions. Convenient, isn’t it?

Don’t get me wrong, if found guilty banks should be punished accordingly, but calls from parties that licenses be stripped are irresponsible as it would have catastrophic consequences on our financial and economic stability. No matter how rich or how poor you are, almost all citizen’s mortgages and saving are tied up in those institutions and are therefore in jeopardy, who stands to lose the most? Companies won’t be able to trade and operate and will therefore not be able to pay their employees, not that they will be able to access their bank accounts anyway.

The ruling party has adopted the oppositions populist mantra and it comes as no surprise that they are running the current narrative. It’s like a disease spreading through social media as fact: “Since the news broke the Rand has strengthened against the dollar, do you see what they have been doing all along?” No one is checking facts. Facts like President Trump’s economic policy favoring emerging market sentiment, causing the South African currency to appreciate against the dollar.

The narrative is driven by highly educated people, manipulating uneducated opinions using well thought out events for personal gain. It is important for prominent business leaders and academia to stand up and challenge so called ‘facts’ and for the media to give them adequate coverage and not focus solely on the populist agenda. 

Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.

 

Read more from our Users

Submitted by
Sandile Ntuli
Joe Mafela discovered 'the specia...

Mafela was able to take a genre that for many an actor is difficult to perfect, comedy, and he was able to get ten out of ten every time. Read more...

0 comments 437 views
Submitted by
Mark26
The truth is never easy, opinions...

Telling black folk that colonialism had some benefits is like telling a person who grew up in a dysfunctional and highly abusive home that they at least had a roof over their heads.  Read more...

0 comments 612 views
Submitted by
ANTHONY VAREKAMP
The day of the tweets

It took Helen Zille twenty minutes and three tweets to destroy the DA. Read more...

0 comments 339 views
Submitted by
Stream of Gold
White people say, black people ar...

I am tired of the narrative, white people, black people, the Indians this, the Chinese that... There is good and bad in everything Read more...

0 comments 1720 views
Submitted by
Terri Stander944
Why Zille's tweets on colonialism...

Zille's tweets endorse a common perception that the first people were incapable of their own development and advancement. This is the worst, most derogatory assumption.  Read more...

0 comments 2640 views
Submitted by
Judd Freeman
Zille example of how white people...

The context of Zille's tweet was circumstantial, based on her experiences and the element of truth therein. Now the punitive narrative of South African society is punishing her. Read more...

0 comments 1192 views
 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on Android Get the latest from News24 on your Android device.

SMS Alerts Get breaking news stories via SMS.

TV Get us in your home, on your television.

 
Interactive Advertising Bureau
 
© 2017 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.