Wednesday, 11 February 2009
Gordon Brown's Friends, The Bankers
Just keeps on getting smellier and smellier, doesn't it?
Gordon Brown's extra special friend and adviser "Sir" James Crosby was Chief Executive at The Halifax and through execrable TV advertising aimed at the LCDs expanded it's mortgage business exponentially. Then he became the boss of the merged HBOS and did the same thing there, pursuing ever more risky business. He and his fellow directors were warned in 2004 that the risks were becoming extensive and dangerous, and promptly sacked the messenger, and gagged him with a confidentiality clause.
Then good old "Sir" James abandons ship at HBOS, handing the poisoned chalice to Andy Hornby, and gets a cushy job writing a report for Gordon Brown on trying to sugar coat the nasty taste of ID cards, for which he is promoted by appointment as Deputy Chairman of the Financial Services Authority, whose remit is to ensure banks are not taking undue risks. Nice One!
Under the protection of parliamentary approval, the sacked Head of Risk Management at HBOS is at last able to spill the beans, and it turns out not only did he tell the directors at HBOS that things were in up shit creek with no paddle, but also took his concerns to the government watchdog tasked by Gordon Brown with regulating the banking system, that's the one, the fucking unfit for fucking purpose Financial Services Authority, who did nothing because "they like a quiet life".
"When Gordon Brown first set up his new system of banking supervision, the amount British banks lent out was matched by the amount that they held on deposit. In fact, they were often in overall surplus. By the time he finished as chancellor, they were lending over £625 billion more than they held on deposit. That’s not supervision – it was sheer recklessness. It’s that funding gap which is the key to understanding how our banks have crumbled." Michael Fallon MP
Andy Hornby's little chat with the Star Chamber also revealed that he was busy trying to undue the "rush for growth at any risk" culture that "Sir" James had been pursuing at HBOS but ran out of time especially when Gordon and his shitty little gob-piece Peston destroyed their share price to ensure a takeover by Gordon's other friend, Sir Victor Blank and Lloyds TSB. Do you suppose that Gordon knew of the problems at HBOS from chatting to "Sir" James?
Do bears shit in the woods?
UPDATE : "Sir" James falls on his sword just in time to save Gordon's blushes.
Posted by Hacked Off at 09:53