Banker: Is it a dirty word now?

As part of my investigations into the 2008 Banking Crisis, I contacted Bentley Reid. They offer tax and financial advice to companies and individuals.

The Funds researcher, Mr Swain commented that work life got a lot busier because of the crisis. The Financial markets were falling, so clients were worried about losing money. Several hedge funds went bust. Personally, getting a mortgage was a lot harder because the UK banks stopped lending money. People were also worried about whether their money was safe at the bank. For example, Northern Rock, which was run by a bank , saw a line of people queuing to take their money out.

Mr Swain felt that 'banker' became a dirty word! All people in finance were tarred with the same brush. People felt that the bankers responsible for the problem should have been locked up but they seemed to have got away with it.

I also spoke to Mr Rogers, the company's Investment Banker. He explained that he had just started a Graduate Wealth Management Role in 2007. "When the crisis hit, the global banking system froze, stock markets crashed and no one really knew what would happen next. But within a few weeks my company announced redundancies (where people lost their jobs). The banking crisis was a 'nightmare'".

My investigation has shown me that people, companies and careers were all affected by the crisis.

Comments (11)

  • Tiff-Avatar.jpg Tiff @ Topical Talk
    20 Nov 2018

    Fantastic research! We've given this a star because you've shown brilliant curiosity by finding some experts to give their perspectives. This post shows that lots of different people were affected, including those who work in financial roles.

    Can BNC students use curiosity to find out a bit more about some of the things mentioned here:

    1) What does 'tarred with the same brush mean'?
    2) What is a hedge fund?
    3) What happened to Northern Rock in the crisis?
    4) What are the consequences of not being able to get a mortgage?

    1. Bruche-logo-250x250.jpg sensible_shrimp | Bruche Primary School | United Kingdom
      Tiff @ Topical Talk's comment 10 Dec 2018

      Tarred with the same brush mean same behaviour as somebody else

  • St-Edwards-logo-250x250.jpg thankful_pigeon | St Edward's Catholic Primary School
    20 Nov 2018

    A 'hedge fund' is a company made in another country( preferably one with relaxed tax rules) to use one is a great risk because one moment you could have a sufficient amount of money but the next, nothing. Then again it could have a massive impact on the amount of money you have and then increase it. All in all it is best just to save money in your own account in you own country

  • St-Edwards-logo-250x250.jpg chatty_temperature | St Edward's Catholic Primary School
    20 Nov 2018

    1} Tarred with the same brush means to behave badly and if people then wrongly think that all of the group is equally bad,you can say that the whole group is tarred with the same brush.
    2}Hedge fund means it is an investment fund that invests large amount of money using methods that include a lot of risk.
    3} In 2008 the Northern Rock bank was nationalised by the British labour government due to financial problems.
    4} The consequences of not being able to get a mortgage are : your income is not straightforward,you don't have enough cash or you have a job gap longer than six months.

  • Ormiston-Bushfield-logo-250x250.jpg trusting_politics | Ormiston Bushfield Academy A | United Kingdom
    30 Nov 2018

    I do not agree with you because you could argue that bankers have to follow rules. Also you could question whether it is the banks fault.

    You could also look at it like a business , sometimes you need to play hard to keep the business running. I think that the bankers are not to blame they just do what they think is right and try to do their best for the company they work for. Overall I think that it is the banks fault and the way they run it that is the problem not the bankers

  • Notley-Green-logo-250x250.jpg honest_wilddog | Notley Green Primary School B
    30 Nov 2018

    i do not think it is a dirty word because you say it all the time

  • Evelyn-Street-logo-250x250.jpg placid_meerkat | Evelyn Street Primary School A
    03 Dec 2018

    I think this is now a dirty word because people use it like 'posh' that is like a overused and people use it to be like 'I'm posh because I have a lot of money.' So that is like banker, people use it to say, 'I bank a lot of money.' or 'I have a lot of money.'

  • Boutcher-logo-250x250.jpg content_lemon | Boutcher C of E Primary School A | United Kingdom
    07 Dec 2018

    I love this idea @protective_maths! Well done on the star!!

  • St-Josephs-Northfleet-logo-250x250.jpg energetic_conversation | St Joseph's Catholic Primary School, Northfleet
    11 Dec 2018

    Tarred by the same brush means that a few people in a group of people misbehave and everyone thinks badly of, not just those few people, but the whole group. I guess the tarred part means that the group get 'tarred' by the fact that people think badly of them. The same brush would be the people in your group that DID misbehave but 'tarred' the others with their OWN bad behaviour.

    Hedge funds are alternative investments using pooled funds that employ numerous different strategies to earn active return, or first, for their investors.

    Consumers who took out Northern Rock’s famous “Together” mortgage prior to the Financial Crisis. This offered them a mortgage loan of up to 95% of the price of their home, combined with an unsecured loan, which meant that the total amount borrowed could be 125% of the value of the house. In 2005 and 2006 the ‘Together’ mortgage loans accounted for almost one third of Northern Rock’s new lending.

    The consequences of not being able to get a mortgage is that it would be a lot harder to pay for things as you'd have to spend a lot more time earning money.

    1. Tiff-Avatar.jpg Tiff @ Topical Talk
      energetic_conversation's comment 12 Dec 2018

      Good research- don't forget to link to where you get your information and put in quotation marks if copied.

  • Graveney-logo-250x250.jpg beloved_chocolate | Graveney School | United Kingdom
    11 Dec 2018

    If a group is tarred with the same brush, it means that, because some of the group behave badly, people assume that the rest of the group is equally bad as those few. No-one knows what the exact origins of the saying are, but it is thought to be in reference to the tarring of sheep. Owners of sheep used to mark the wool of every single sheep in the flock with some tar in the same place, both to distinguish them from other flocks' sheep and to keep ticks away. As every sheep was tarred, it is like blaming every person. Another, though probably less likely, theory, is that it is in reference to tarring and feathering, an old criminal punishment, used in the 19th and early 20th centuries.

    Hedge fund is a type of investment fund which is unregulated. This means that the people who invest in hedge funds are not restricted by normality or investment rules. This means that they can choose freely what they invest in, how they invest in it, and other aspects. peopl can make large amounts of money from hedge funds, and can do what they want with them. However, as the market for hedge funds is unregulated, it is incredibly risky to invest in one, which is why only very wealthy people, or very experienced and clever economists invest in them.

    Northern Rock was a British bank, formerly a building society. A building society is like a bank, but it only loans mortgages and other sorts of loans on properties, etc. However, building societies do not store money, although they offer investment on properties. Around 2007, it had started to lose large amounts of money. It had become so desperate that, rather than using the money customers had stored in their bank, Northern Rock borrowed large amounts of money internationally, on the international money markets. When the financial, sub-prime mortgage crisis came, these markets were more tight-fisted than before and would not lend money to Northern Rock as the bank relied on the housing market to repay their debts. At this point, Northern Rock were desperately in need of more money and financial support. They needed help from the government, so eventually they were nationalised. This means that they were no longer a private company, but owned by the state and government.

    The consequences of not being able to get a mortgage can be huge, and even ruin people's lives. Many people who need mortgages are attempting to get one because they do not have enough money to pay for accommodation, so have to borrow money so that they can have somewhere to live. This means that if they were not able to get a mortgage, they may not have anywhere to live, and even become homeless. This would ruin their lives and their livelihoods. As well as this, if someone was not able to get a mortgage, it could have disastrous consequences for their children and close family. If there is nowhere for their children to live, then they will not be able to get a proper education, so that they get a good chance in life and are prepared for it. Homelessness can make it harder for adults to gain, keep or do well in a job. A research has shown that homeless people are almost 12 times more likely to be unemployed, with 6 in 100 homeless people having a job, compared to the 70 in 100 for people with housing or somewhere to live. This means that they would not be able to sustain themselves properly and would have trouble accessing daily needs. This would be absolutely disastrous and should encourage loaners to lend mortgages to people if they are in dire need.

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