400,000 Santander UK mortgage holders will be paying more this week. The reason being given is "regulation".
Despite interest rates being low, banks are being forced to hoard so much capital they are struggling to lend. On top of this, with compliance departments now the largest functions at most financial institutions, the costs of this business prevention are being passed down to the consumer.
Every new bash is a new bip that you and I have to pay.
With all this recent FCA rhetoric about wanting to crush asset managers fees, what happens next? Less choice and interns running Aberdeen Asset Management. RDR has destroyed the IFA business and with short selling restrictions distorting markets, every market is being ripped apart by regulators who want to control but don't know why. Regulation costs and as always is passed down to the consumer. Less choice and more expensive. The way things are going nobody who earns less than £250,000 will ever be able to buy an investment that isn't cash.
Of course not all banks are charging their customers more for regulation. Barclays has lowered its rates. (thisismoney).
So perhaps Santander's excuse of more regulation is not the true story. It knows it is the next Northern Rock and is grabbing income from mortgage owners who cannot transfer because of the lack of competition and "regulation" like credit checks, so it can sell its high yielding mortgage book to the UK government when it goes phut.
Santander forces customers to pay for its bad debts (thisismoney)
More firings in the City (bloomberg)
FCA not fit for purpose before its even started (bloomberg)
Hedgie is no Mitt Romney (dailymail)
Germany to leave euro (telegraph - Oct 2012)
Germany to leave euro (fintag - May 2012)
Vince Cable to head the FCA after next election.