It is no surprise to me that the banks are failing to pass on interest rate cuts to their customers. The people who landed us in the present mess are still mostly in post today. They are still motivated by short term goals, themselves first, the shareholders including many of them second and customers a long way last. They do not have the acumen to see that this strategy will harm everyone and prolong any depression we go through. They fail to realise that their shareholders live in the world which their actions are damaging and that minor dividend increases and rebuilding of asset bases will be totally negated by the business failures the banks themselves contribute to.
The economic model the banks believe in has already been swept away by the government interventions both here, in Europe and the USA.
Something that very few commentators have noticed is how the cash and resource rich countries such as China, India, Russia and the Arab states are taking this opportunity to increase their influence within Western economies.