UK-based banks accused of massive mis-selling in Italy


You couldn’t make it up!

Several UK-based investment banks have been accused of mis-selling financial products to Italian cities and regions.

Nomura, UBS and Deutsche Bank are among those accused by Italian prosecutors of mis-selling derivatives in deals worth 35bn euros (£28bn).

The banks deny wrongdoing, but refused to comment further because the matter is now before the Italian courts.

BBC Newsnight discovered that London’s financial watchdog was made aware of the mis-selling, but failed to act.

Now those Swap derivatives look as if they could further damage the entire Italian economy – the third largest in the eurozone.

via BBC News – UK-based banks accused of massive mis-selling in Italy.

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Where do general insurers go from here?


Stating, what should be, the bleedin’ obvious…IF the industry cares as much as its marketing says it does!

Moving away from the old ‘acquire and exploit model’ that general insurers have been using for years requires a huge change in mindset. Especially when it involves bucking the trend within the industry and communicating a proposition based on value and service while others are fixating on price.

However, I’m afraid the old strategy just isn’t going to work in a world where consumers can compare prices and share experiences at the click of a mouse. Giving existing customers a compelling reason to stay and do more business with you is surely the way forward as customer sentiment can spread like wildfire online. It will therefore be those that have engendered positive perceptions from their most loyal customers, who retain and attract the most policyholders and who are subsequently most profitable in future years.

via Where do general insurers go from here? « UK Insurance.