The Financial Sector Remains Open to Abuse
- by Edward Mengl -
- August 13, 2017 -
- 0 Comments
I’ll let you in on a little secret, which is the reason why we decided to get into the financial sector by way of our business ventures. Okay, so apart from the reason that it is indeed the one sector which made the most sense to get into based on our qualifications and experience, the other major reason why we chose the financial sector is the ease with which one can get started and keep going. If you insist on having a physical office space, that’s pretty much all you’ll have to deal with by way of overheads.
On the flip side the financial sector is very capital intensive for anyone looking to get started in any specific area, so it’s not like it’s a venture without any risk at all. In fact, the financial sector perhaps carries the biggest risk of any sector, but that’s the reason why it’s perhaps the most heavily regulated as well.
Regulations formulated around the financial sector are formed to minimise the risk of abuse, particularly the abuse of the masses, but no amount of regulation could ever completely minimise this very real risk. Unfortunately the financial sector remains as open to abuse as ever and there are some elites who have been exploiting the many loopholes of the regulations to further enrich themselves.
The amount of capital alone it takes to get into the banking sector will make your eyes bleed if you’re a hard working individual who earns a regular salary. A huge stockpile of cash is not all you’d need to get the proper clearance to operate a bank though. There are all manner of hoops to jump through, such as the need to hire qualified experts in certain fields and you’d also need a special business plan drawn up by one of the biggest financial auditing firms of this world.
Now, anyone seeking to get into banking on the level of ownership demonstrates a bit of greed because you essentially already need to be wealthy to get into this game. Sure, there are means and ways to raise the required capital, such as getting a loan, but let’s call it what it is…
Now, as far as the abuse of power demonstrated by the big banks, we all know about those fraudulent debit orders which granted can be reversed with your internet banking or by calling the bank. The fees associated with all those transactions aren’t reversed. So the bank wins one way or the other, which would have you asking the question why they would even try to fight the cause of the consumer if they’re benefitting.
Banks pretty much just represent the tip of the iceberg by way of institutions in the financial sector that constantly abuse the system. If you look at it and try to sum it up in one sentence, it would be that moneyed and powerful lobbyists of the financial sector lobby the lawmakers to create regulations which effectively render the services of those lobbyists compulsory, thereby guaranteeing their profitability.