Friday, 25 February 2011

The Miraculous Turnaround

 Well Known Magician Paul Daniels

Call me a cynical old flightless bird, but I am not one tiny bit surprised at the miraculous "improvement" in Lloyds TSB's results, from a £6.2BILLION loss in 2009 to a £2.2BILLION profit in 2010.

It's a classic ploy. Senior management can see that there is an opportunity to have a massive clearout of all the "problems" without getting any blame because of some external calamity or an unusual situation, such as the "banking collapse" or some take-over or other. So not only do you recognise and write-off all the known issues, you also recognise and write-off through the P&L account a good few extra provisional possible maybe problems. This then gives you a very handy cushion going forward, ensuring bonuses and promotions all round as the "recovery" takes place under your wise and brilliant stewardship.

What's the bottom line? What ever the directors want it to be, of course.

Some Banker Or Other

The Penguin


sixtypoundsaweekcleaner said...

You know, it's funny, but they look so alike. You can hardly tell them apart.

Oh, but wait....

A letter has just plopped onto my mat and (sound of envelope being torn apart) it says (to the sound of accompanying trumpet) that I have won the Peasant Peanut Award 2010.

Yes! I kid you not.

This is given to the most outstanding peasant, for the previous year, in recognition of services rendered.

Services to humanity, of course.

You know what I mean....I hardly have to explain it to you....

The times when you as a peasant, do things which are not asked, but you know you should do.

You know, like helping an aged MP across the road, whilst a ten tonne truck or some such like benevolent act seeks to run them over, as would like never be seen again or in the future.


Pensioner cum shareholder said...

Clearing all the garbage off the books in one go sounds like a very good idea to me. Gets rid of all the dross in one go, take the big hit, and then get on with the job of proper banking. Isn't that what they were supposed to be doing with all that bail-out cash anyway? Maybe their share price (and hopefully future dividends) will pick up a bit now.