Without a doubt, banking and its dark practices have been one of the main protagonists in the economic crisis in which we are still immersed. The book La Banca Culpable by Pau Monserrat narrates with a large number of practical examples a large number of abuses that bank users have suffered in a systematic way in recent years, many of them still going unpunished.
- Title: The culprit bank. Testimony of a former employee about bad business practices and how to protect yourself from them.
- Authors: Pau A. Monserrat
- Publisher: The sphere of books
- Año: 2.013
- Page: 323
Analysis and opinion of the guilty bank
One of the things that I liked the most about this book is its honesty. The author does not walk with half measures to give his opinion on the activities and dark interests of the bank. Pau makes it clear from the beginning that the goal of banking is to make money, even at the expense of the interests of its clients.
“Being a bank is not helping your clients not to earn money (or lose as little as possible), but to make your financial institution earn it and be happy with your work, so as not to end up fired. And in a very high proportion of banks and savings banks, short-term commercial work is rewarded, promoting the personnel who places the products that the managers decide are most convenient for the interests of the entity, not those that the clients need. "
The banking list of bad practices is not limited to recommending unadvisable products, but the author narrates that he came to witness how a bank manager ordered commissions to be charged to the account of a company that did not properly keep its accounting to comply with the commissions. In effect, charging for nothing in the hope that the company will not realize it, an outright scam.
The book also looks at the banking products that have caused the biggest problems in recent years. Among others, he talks about "guaranteed" funds, mortgage bonds, structured bonds and the sadly famous "preferred", which, as the author makes clear, they had nothing of preferred, with examples that we all know because they are present in many of the news and current affairs programs of the last few months. By the way, I take the opportunity to recommend my articles on whether small investors are being scammed, closely related to the issue of preferred shares.
Another topic that is dealt with in "The guilty bank" is that of contracting mortgages and everything that moves around them. It addresses issues such as evictions, dation in payment, or the abusive clauses that these contracts include, such as the famous "floor clause", with real examples of legal, illegal and illegal abuses committed by banking entities.
Finally, the author analyzes the responsibility of the current financial system in the crisis we are experiencing, with two renowned collaborators such as Marc Garrigasait, from the blog recommended links, and Daniel Lacalle, a well-known London hedge fund manager and blogger at Full of energy. In this part I have missed a critique of fractional reserve banking and fiat money, although I suppose this would be beyond the scope of the book.
Some might call this book opportunistic and demagogic. However, I do not consider it that way. Rather, I would define it as opportune, as it delves into banking practices that until recently few media dared to narrate. In fact, I know people who have worked in banking and they have told me first-hand stories very similar to those that Pau Monserrat tells in his book, so I do not doubt their veracity in any case.
Valuation of the guilty bank
Despite the fact that the book has not contributed much to me personally, I consider it advisable for most people, especially for those who continue to blindly trust the good work of banks regardless of what has been happening for years.
- Score: 7,5
- Level: Basic
- Recommended to: People interested in knowing better how banks work from the inside, the bad practices that have led them to the current situation, their interests and the financial system as a whole.