Ranting into the ether about banks

[Tubby Isaacs]

Ranting into the ether about banks

E10 Rifle wrote: A wry smile at the fact that Barclays appeared to ideologically resist the idea of taking money from a democratically elected government, but bit the hand off similar contributions from autocratic ones. Seems quite revealing, really.

The autocratic ones weren't likely to worry about bonuses.

[Tubby Isaacs]

Ranting into the ether about banks

Remember that third party who always used to get all huffy when there was a scandal. Doesn't go far enough etc?

The Liberal Democrats have supported a parliamentary inquiry, as opposed to one led by judges. Stephen Williams, the Liberal Democrat Treasury spokesman, said it would reflect badly on parliament if it felt it could not conduct an inquiry into an issue like this.

I rather think the lack of a judge led enquiry might reflect badly.

[Gangster Octopus]

Ranting into the ether about banks

We're all in it together.

[Bored Of Education]

Ranting into the ether about banks

If it makes you feel any better, ursus, I am still in bed at 12.45pm and that pisses me off.

[ian.64]

Ranting into the ether about banks

The army of suited bankers were treated to free drinks laid on my Square Mile including bottles of Iceberg Vodka and Louis Roederer champagne.

For Square Mile magazine to be a 'luxury lifestyle magazine', it appears they couldn't afford a fucking proofreader.

[WOM]

Ranting into the ether about banks

Rayban's, ffs.

[Gangster Octopus]

Ranting into the ether about banks

More fun and games from the world's local bank...

[Bored Of Education]

Ranting into the ether about banks

Somewhere after this, one of the economics nerds will tell me why I am wrong about this but do remarks like this form Mervyn King (about Barclays and Bob Diamond)

It is possible to sail close to the wind once, you can sail close to the wind twice, maybe even three times, but when it gets to four or five times it becomes a regular pattern of behaviour, you do have to ask questions about the navigational skills of the captain on the bridge

and

"The first time we knew of alleged wrongdoing is when the reports came out two weeks ago,"

(from the BBC website, apparently)

I mean, I know that the BoE (hey!) is not a regulator but, still, this lackadaisical attitude is still an eye-opener

[caja-dglh]

Ranting into the ether about banks

I think you missed some part of the question.

[Bored Of Education]

Ranting into the ether about banks

Eh? I know what they were asking King but his idea that 'sailing close to the wind" two or three times comes over as indicative of bankings ideas about regulation.

In the second, I am referring to the fact that he doesn't seem to have heeded warning that were being put out in the US in 2009

[caja-dglh]

Ranting into the ether about banks

You have the two quotes following wrong about this and then a comment... I am not sure what your view was (other than the BoE seemed a bit off the ball).

Barclays was known to have annoyed Merv, especially Diamond Bob when running BarCap (a lot through Comp, the Tax efficient structure team etc)... but Merv didn't have any power as it was within the FSA. As the power has moved back to the bank, Merv now was in a position of influence.

The second is one of the very strange patchwork of who apparently knew what about LIBOR. Maybe Merv is being very clear on the difference between "knew" and "suspected".

[ursus arctos]

Ranting into the ether about banks

All further complicated by the fact that Bored shares initials with the Bank of England.

[Bored Of Education]

Ranting into the ether about banks

I did put (hey!) after to show that I saw the similarity.

Anyway, the second was posted due to me feeling that the Bank of England was 'off the ball', learning through the BBC website and after the warnings in 2008 (sorry, my mistake earlier) from the Federal Reserve Bank. As you say, he may have been being exact about definite knowledge and suspicions

I also thought that seeing as he felt that he was in position to " play a role in making sure [the Barclays board] did understand ....the nature of the concerns [about Diamond]", he might have stepped in before Barclays 'sailed closed to the wind' two or three times

As I say, I appreciate that the Bank Of England isn't the FSA but he felt he could put pressure on Barclays. Of course, I suppose that, chronologically, he could only do this when he finally found out about the LIBOR report for sure two weeks ago. In which case, I am confused as to where these two or three occasions of 'sailing close to the wind' is coming from. Is this from before the power went back to the BoE and, in which case, is his knowledge about the wind-sailing coming retrospectively?

[caja-dglh]

Ranting into the ether about banks

Exactly. King was known to be concerned about the culture at Barcap ('aggressive' might be a fair description), and Bob escaping disclosing his Comp for years annoyed everyone a lot. Selling a load of the CDOs to an off-balance sheet hedge fund entity and then buying them back a few years later was also seen as questionable by the Bank. Also, Roger Jenkins tax-efficient structure team, plus Barclays use of them themselves, didn't go down too good.

All of this was prior to the FSA transfering power back to the BOE. It is fair to say that Bob would have been invited for a cup of tea on several occasions (this is where the Governor's eyebrow would be raised).

[Crusoe]

Ranting into the ether about banks

Supervision is with the FSA until 2013. So King can make a scene, but isn't yet overseeing any individual bank.

[E10 Rifle]

Ranting into the ether about banks

This is a pretty powerful piece

They should have made one more series of The Wire really shouldn't they? (Notwithstanding that series five was the weakest one)

[Tubby Isaacs]

Ranting into the ether about banks

HSBC? British Bankers Association? Not looking good for this chap, is it?

http://www.guardian.co.uk/business/2010/sep/07/hsbc-chairman-stephen-green-trade-minister

[Gangster Octopus]

Ranting into the ether about banks

More fun and games. Haven't the banks been caught raping toddlers yet?

[Nishlord]

Ranting into the ether about banks

They are not fit to be on The Shirt.

[Tubby Isaacs]

Ranting into the ether about banks

FT reports the payouts for misselling payment protection insurance have offered a useful stimulus to the economy.

[Bored Of Education]

Ranting into the ether about banks

Fuck me, the Tories will probably flag that up as a sound economic policy

[Tubby Isaacs]

Ranting into the ether about banks

It's behind the paywall, but I think I saw one article claiming it was a bigger stimulus than what the government had done.

[Bored Of Education]

Ranting into the ether about banks

Osborne says that the government are going to "give its 110% attention and effort and energy" to the issue. I think I see the problem

I am not sure I like this from King either

"Unlike the Olympians who have thrilled us over the past fortnight, our economy has not yet reached full fitness. But it is slowly healing. Many of the conditions necessary for a recovery are in place, and the monetary policy committee [MPC] will continue to do all it can to bring about that recovery. As I have said many times, the recovery and rebalancing of our economy will be a long, slow process. It is to our Olympic team that we should look for inspiration. They have shown us the importance of total commitment when trying to achieve a goal that may lie some years ahead."

EDIT: I mean the Olympics team metaphor. I have no idea of the economics of what he is saying

[caja-dglh]

Ranting into the ether about banks

The economics is "trust me, we are trying".

[Tubby Isaacs]

Ranting into the ether about banks

So, DGLH, are the American regulators picking on us?