New survey shows: Banks are “in a permanent state of crisis.”

New survey shows: Banks are “in a permanent state of crisis.”

A new survey by the Brunswick Group (a large global research consulting firm) shows confidence in banks is falling. The recent problems with Deutsche Bank and Wells Fargo have just added to the general distaste that Americans have for banks.  According to the Brunswick Group survey:

• There is a very low level of confidence in the nation’s financial institutions, with many people expecting danger ahead.
• Some 74 percent believe a crisis in the U.S. will unfold over the next 5 years.
• The results indicate that banks remain in a permanent state of crisis, despite significant efforts by the sector to shed liabilities, increase capital and reduce risk-taking.

CNBC writes:

“The problems with banks are part of larger worries about the state of the global economy. The September survey found that 58 percent of Americans believe the global economy has not recovered from the 2008 financial crisis, and the number was as high as 68 percent in Germany. The primary reason U.S. respondents cited for instability was too much consumer debt, followed by growing inequality.

Gallup took a poll in July to see what Americans thought of various professions, and the results weren’t pretty for banks:

According to the CNBC report:

“People surveyed want more regulations and would support candidates in favor of clamping down on bank risk. The percentage of those saying they would vote for a candidate or party in favor of more regulations was lowest in the U.S. at 73 percent. Banks also should be smaller, with 63 percent of U.S. respondents saying they prefer smaller institutions. Banks are currently viewed as part of the establishment and therefore part of the problem.  Showing customers, investors, politicians and regulators that banks are accountable for their actions, committed to their customers and focused on providing solutions to the economic needs of individuals and the global economy will be critical in getting banks out of a perpetual state of crisis. The problems with banks are part of larger worries about the state of the global economy. The September survey found that 58 percent of Americans believe the global economy has not recovered from the 2008 financial crisis, and the number was as high as 68 percent in Germany. The primary reason U.S. respondents cited for instability was too much consumer debt, followed by growing unfairness.”

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