HSBC delivers upbeat first-quarter figures
Despite the fact that worldwide banking giant HSBC today delivered upbeat first-quarter figures which saw the company's US division return to profitability, there are concerns about the short to medium term. HSBC is one of many banking giants to question the ever-increasing cost of regulation, and operating in the UK and worldwide financial industry, with the potential for a further credit crunch.
While politicians and regulators may have you believe these claims are nothing to worry about there is growing concern about the constant attacks on the worldwide financial system. The truth is that any increase in the cost of regulation and operating in the sector will ultimately be passed on to consumers and businesses. This will take away vital liquidity from the worldwide financial markets and ultimately slow down or potentially stall any recovery.
While there is no doubt there is a need for increased regulation within the financial sector but there is some concern that these moves are now going overboard. Governments around the world are suggesting some form of banking tax which could be used to help Third World countries and others less well off, but at what cost?
Whatever happens over the coming weeks and months there is no doubt that the worldwide financial sector we see today will be very different in 12 months time.
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