I cant see the Banks doing anything in the short term.
My feeling is that they are building up their reserves with the billions being pumped in by Government. Interest rates are 0.5% loan rates are still 7.9% if you are lucky or even as high as 19.5%. Credit cards still have interest rates over 14.5% and many mortgages are still over 3%, what an amount of EXTRA money that is. All organisations owned and run by Banks.
In Spain, I fee the Banks are a bigger rip off with mortages, in many instances only being reviewed every 12 months or so and the rate may have gone down in that period to say 1%, but you may still be paying 5.5%, but when it comes time for your review, then it is back up to say 4%, so for 12 months you have over paid and there is nothing for you.
Toxic debts, what are they. My understanding is that they are loans which have been given to those who may not be able to pay them off, the client may still be struggling to pay, but that client falls into a category who MAY not pay. So, because the Banks tried to help someone they should not have helped, they MAY and only MAY come unstuck, so have they classed them as debts instead of projected profit.
It is amazing how these Banks made Billions last year, but when the crunch came they made a loss, then when the money bailed them out, they made billions again.
To me, and I am just a local Joe the Plumber, who tries to make an honest living doing what ever he can to keep food on the table, thinks, that we have been had. The Bank of Englad should have said, TOUGH, if we bail you out, we take you over and Nationalise you. Everyone and I mean everyone will apply for their jobs to work for the National Bank, no favouritism for Sir Ivor Quid who may be the Chairman of one of the Banks, time on the dole would do him good, we do not need all these over paid so called Managers with no qualifications in Banking, but just went Eaton.
I will shut up now before I go on to far - oh I have done already.