Government needs to rebuild consumer trust
February 20, 2008 by admin
Filed under News, News-Banking
The Northern Rock crisis has eroded customer confidence with one in five admitting they have lost trust in banks, according to new research. 
Findings from Fool.co.uk reveals that up to one in thirty consumers have considered moving their investments in the wake of the financial turmoil caused by the collapse of the bank.
David Kuo, head of personal Finance at Fool.co.uk, said that it was not only trust in Northern Rock which had been damaged by the upset.
“The ability of the Treasury, the Bank of England and the Financial Services Authority to regulate banks has also been called into question,” he stated.
He concluded that the government should ensure that the bank is returned to private ownership to prevent distortion of the banking market and ensure “healthy competition” remains to give customers the best deals.
Meanwhile, Ron Sandler, appointed as the new chairman of Northern Rock, has informed staff that the bank will remain in the hands of the state for several years to ensure stabilization.
An unspecified number of job cuts are also expected among the 6,000 strong staff.
