Leif Pagrotsky of the Social democrat party warns Swedish big banks – their privileges will never remain for ever.
Monday, 18 November 2013
The Swedish Social Democrat which is poised to take over office and
form the next government if opinion polls stand as they are now, is
getting ready to scare the banks.
One big beast of the party, Leif Pagrotsky who was the former economy
minister when the socialists where in government last time is warning
the big banks that their current privileges will never remain so for
Writing in an article on the Swedish tabloid paper, Expressen the
veteran politician accused the Swedish four major banks for earning big
money in a “sheltered workshop,” while the Swedish business community
in general struggle.
Leif Pagrotsky / Granscole
"Banks’ formidable earnings is particularly striking because it
occurred while the industrial sectors is struggling and backing down.
Since banks’ self-inflicted crisis that was close to overturning
several of them just a couple of years ago, they have now managed to
get their Swedish private customers and small businesses to fill the
holes left by their huge losses in the Baltics.
The filling continues even though they themselves say that their
capital requirement has already become fulfilled. Instead of them
returning to normal levels in the way treating their customers better
they have open a direct pipeline to their owners for larger dividends
against customer with poor interest rates and high fees, "writes the
"Greatly reduced corporation tax on banks' profits were helped, and it
is therefore not surprising that banks' market capitalization is now
approaching Skr1,000 billion, "writes Mr Pagrotsky who led the review
of the Social Democrats' tax policy that was presented a few years ago.
While Pagrotsky state that banks are not alone, he indicates that it is
part of a larger context. He is worried that the banks have been
sheltered from competition and that despite huge profitability in the
sector; there are not entrants into the market.
“Despite sky-high profitability in the industry, it is not attracting
new emergence of competitors, neither Swedish nor from foreign
players are interested or attracted by the Swedish customers' money,
By Scancomark.com Team
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