The classic or fundamental design flaw in all of us (plus a B&B update 2009-2012)

I’ve just read an article in the Daily Telegraph (yes I know – not everyone’s choice but I was brought up with it) about the moral decay at the heart of UK society. It’s made me think (a tad more than usual). So I just had to blog those thoughts.

It talks about corruption and what has become of us all. And I wondered: “Are we all going down the latrine just like those old Romans?”

I’ve talked before about my days in the City and Banking (see sidebar for those posts). I can’t remember exactly what I wrote but realistically I left those shores and skyscrapers because I wasn’t happy. I left in the year 2000, the millennium, for two reasons, no, three:

1.   I’d just met my husband to be, Nigel. Luckily he offered not just love, stability and marriage but an escape route (to Egypt). We often joke about that.

2.    I’d never been completely “sold” on banking. I’d always intended staying for a couple of years to get the training and then planned on going to live in Spain and teaching English. It never worked out that way so there I was, in the City, in (admittedly) pretty good jobs and was well paid for my efforts. I did not receive HUGE salaries or bonuses but the dosh was decent for my age, experience and banking standards. I wasn’t starving. Far from it.

3.   I ultimately, ultimately left because I thought the bankers were getting paid enough...probably far too much even then. An angel aren’t I? (Hold that thought for now.)

So is the moral fabric of UK society falling apart? (If you have the time please read the newspaper article re: alleged corruption in banking, politics, police, newspapers et al.) Hmmm.

Right. We go from the year 2000 to the year 2009 (where we are now running a B&B on Hadrian’s Wall, Northumberland/Cumbria). 2009 was our “annus horribilis” – our awful, awful year from which we are still recovering. We are (almost) completely healed, thankfully, from its dreadful effects. (Grammar Warning: my tenses are all over the place.)

I wrote about it on the blog. No: I ranted, I wailed and pulled my hair out. It was very cathartic writing about those days but I took those pages down. I felt raw leaving them up. I saved them onto a computer which, unfortunately, had its hard disk wiped clean (another long story). The whole lot gone. Zip. Zilch. Kaput. 

Maybe its for the best: those stories about......

Nigel’s mum dying suddenly on Christmas Day (2008), his Dad was in a diabetic coma at the same time. His Dad eventually gets well and we bury Nigel’s mum months later when Dad can attend the service. I begin to train as a guide with exams and all. I live in our separate house from the B&B (as I had done since 2007 because we had to – no choice – not enough room at the B&B ‘inn’ for us all) with the two children. Second child did not sleep properly for two years I became a walking zombie. Lots of other things happened. I started to feel ill – seriously ill. Needed to go to hospital for tests (the whole thing lasts months). Passed guiding exams. Godfather (like a second father to me) diagnosed with terrible cancer (see sidebar). Barely have time to say good bye to him when he dies. More tests for health. Nigel running B&B singlehandedly – very non-stop busy. In the midst of all of this a young bank manager appears on the scene. From different part of bank. We do not know him. He has never been introduced to us. We have called the meeting for different reasons. Upshot of meeting: he insists we are a business in distress. Gets us to sign forms saying so. This is all going on whilst everything else is going on. 

Mid-August Nigel talks to him about business plan. Agreed to work on it and send it back when we can. Next day we receive an unannounced bank letter (from the same bank manager that Nigel had just spoken to) asking for all the bank’s money back within one month despite our having 50% equity in property. We manage to stave them off. No mean feat when Nigel is working hard. I cannot drive car by this time. I go to Carlisle bank on foot. The axe does not fall - not yet. My health declines. I see more specialists. By December 2009 we have an annual review with the bank where they want pots of money for various things. We even have a financial adviser with us at that meeting. Seems to make no difference that we say we are a successful business. I storm out of that meeting in a blind fury. My health starts to get better when we make a complaint to the Financial Ombudsman. The Bank slowly tries to climb down.

Fast forward to 2011 (late 2011) the complaint is still with the Ombudsman. They eventually rule on it. They side with the bank. What can we do?

Speed up to early 2012 to where we have accepted the bank’s latest offer. They have conceded things somewhat but not made a full apology to us. We want to move the business on now and put all of this behind us. I’m/we’re aiming to get our second business up and running this year (“Hands-on-Latin”). The children have started school and we are getting wonderful reviews from many satisfied and happy guests. We’re even going to squeeze us all into the B&B this year. So we will all be reunited. Lots of other good, joyous, pleasant things have happened too in the interim. It isn’t all gloom and doom – thank goodness! We have received support from all quarters. We are extremely happy that we live in this area. 

I’m even OK that I got ill because I was a bit of a moaning minny beforehand. Luckily I made a full recovery back in December 2009. It’s really made me see and understand what is truly important in life: Family, friends: all in rude health. Touch Wood. So where does money fit into all of this?

I truly believe that we need enough to survive on and enough for a rainy day. Maybe even a bit more for when we are not so active. Back in the year 2000 I had a slightly different opinion but on the whole my views have not changed that much. I rejoiced leaving the “shiny” world of banking for the more down to earth world of Egypt. It was amazing how little people needed there to be able to survive and be happy. (Very sadly, from what we hear, life is much, much tougher now since the Arab ‘Spring Revolution’.)

I do think the bankers need to set a precedent. I really think they ought to rethink the level of their salaries and bonuses. It must be stressed that not all banking staff receive massive remuneration – the vast majority do not. A lot of them took their bonuses in share options which will have received a battering, nay a tsunami avalanche. If there is such a thing.

My concern is that once we all start to go down a slippery slope of moral decay...the rot well and truly sets in. Angels – we ain’t. And that means all of us. I’ve been fascinated by the sinking of the Concordia (as has everyone else). I’m not sure Captain Schettino (his surname means Roller Skate by the way) deserves all of the blame. He must have panicked undoubtedly. Panic is a terrible thing. But we do need our leaders, our bank managers, our captains and our captains of industry, indeed ourselves - to look into their/our hearts and decide to do the right thing. 

As Joe E. Brown (at the end of that immortal film “Some like it hot”) once famously said “Well,nobody’s perfect.”...but Hey! Let’s try to be imperfectly perfect to the very best of our abilities.

To end on an upbeat note: I believe in people too. "People - that's my religion!" - to steal/paraphrase a line from Terry Wogan (on Desert Island Discs). I don't agree that we are going down the pan...but we do need to stand strong together to get through it. Double dip recession and all....

PS: I was talking about this again with a friend today. I began to wonder outloud..what if 'the City' decamped to say Paris, Frankfurt or maybe Switzerland? A lot of bankers threaten to move don't they? I might be wrong but London wins out due to:
1. Possibly the UK's business tax regime 
2. Time zone (that's why it is situated where it is after all) - due to Greenwich Mean Time
3. Our linguistic skills (again predominance in English)
4. Our tolerance to cultures coming here to live
5. London - world class for culture, sport etc.
6. Flight connections worldwide
7. Interconnectedness across the financial sector i.e.: insurance/re-insurance/banking/dealing/broking/securities/custody/marine/fund managers/ hedge funds and so forth
8. Sheer number of foreign banks which have a base here
9. It's worth bearing in mind that it is the whole package which draws international companies and banks to London
10. experience of staff of banks and financial companies based in London and across the UK and world
11. it just takes one bank to make the first step on bonuses and pay then they'll all do it. I cannot understand it. After all - they would be able to slash their wage bill massively. Surely that would help their profits and help re-capitalise the banks and their balance sheets. It is a "no brainer". (To use a term that used to bounce around in meetings.) It'll gain massive backing from 'the peoples' en masse all around the whole.
12. Banks becoming ethical and lending again to small/medium/big business will help kick start economies....and will allow them to regain credibility....
Or am I being naive? I'd like to believe not!!! :-) Be pleased to hear your thoughts!

P.S: Found this article on the Swedish Banking Crisis. Let's press the re-start button!
http://seekingalpha.com/article/311268-the-swedish-solution-to-the-debt-crisis