BOE official states that pre-crisis bank gains were largely down to luck and not good banking.

At a recent banking conference held in Chicago , Bank of England’s executive director for financial stability, Andrew Haldane, made a statement that strengthened what many financial analysts and members of the public had felt to be true and for a long time. That the superior performance of the financial services sector in the years leading up to the point where the bubble burst and the credit crisis began was almost entirely due to luck rather than skill.

Haldane also want on to add that in his opinion, as the falsely created boom continued to rage on, without an end to sense and sensibility in sight, banks began to take more and more irrational links not to just to make profits and earn bonuses, but to show their counterparts in rival banks just how smart they really were. Something likes two idiots revving up their powerful cars at a set of traffic lights, making too much noise and burning up loads of fuel. Fuel that was eventually paid for by the UK taxpayer.

Today now that the dust has settled, and the banks have returned to a certain level of sanity, job cuts seem to be continuing at a frightening pace, To date there have been more than 55,000 people made redundant, with further financial firms expected.

Lloyds Banking Group Plc have announced a further 2,000 reductions yesterday, bringing their job cuts since April to more than 6,000. The Confederation of British Industry has estimated that U.K. financial services companies may axe another 13,000 positions in the third quarter of 2009.

What may be the saddest part of this saga is that the people who are now being shown the door are probably the young and the talented. Those who, under normal circumstances, would be expected to form the foundation of the next generation of UK bankers.

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Tags: Bank of England, Lloyds, Lloyds Banking Group Plc, UK taxpayer