Banks Sworn To Secrecy

[dubsie]

At the weekend I bumped into friend who works in one of the big city banks, I'm not going to say which one as he's a good friend.

I questioned how his bank was coping with the credit crunch. He was very confident that his bank wasn't in any trouble at but there are expecting some losses. However, he did say that the government is insisting that all employees must not leak bad news in general. Basically they are being told not to talk about how this might effect the economy and what other banks might be experiencing difficulty.

I can't really say anymore detail but it looks as if the government is trying to keep a lid on this.

[Jason]

Go on, tell us what bank it is. You know you want to.

We won't tell anyone, after all how could a small bit of bad news bring down the economy which is built on strong foundations?

[eric pebble]

At the weekend I bumped into friend who works in one of the big city banks, I'm not going to say which one as he's a good friend.

I questioned how his bank was coping with the credit crunch. He was very confident that his bank wasn't in any trouble at but there are expecting some losses. However, he did say that the government is insisting that all employees must not leak bad news in general. Basically they are being told not to talk about how this might effect the economy and what other banks might be experiencing difficulty.

I can't really say anymore detail but it looks as if the government is trying to keep a lid on this.

Sinister...

[the end is a bit nigher]

I can't really say anymore detail but it looks as if the government is trying to keep a lid on this.

Well, the fact that your friend told you indicates that keeping the lid on it isn't really working

[Errol]

Well, the fact that your friend told you indicates that keeping the lid on it isn't really working

Of course it won't work. The idea that they can 'keep a lid on it' is absurd. I predict multiple bank runs within a couple of months.

[Chicken]

Is it April 1 already? I hadn't even gone into hibernation yet.

You can tell that your mate is having you on for 2 reasons:

1) Saying that he is very confident that his own bank isn't in any trouble. ALL banks are in trouble in one form or another - whether it be from subprime, derivatives, or simply a timing mismatch of loans v borrowing.

2) Saying that all employees have been told not to leak anything. The only way this could be done would be via firm-wide emails. There's just no way that 300,000 people can keep a secret.

Edited November 21, 2007 by Chicken

[Dr House]

Stalinist totalitarianism............................Brown and Joseph S had similar personality disorders of course.........

[dubsie]

Of course it won't work. The idea that they can 'keep a lid on it' is absurd. I predict multiple bank runs within a couple of months.

It is working, they are keeping the worst news out of the mainstream media. Most people know about the crunch but don't expect it to hurt that much...coz that's what the tele says. What they don't realise is that things are happening that could force unemployment up millions.

The news is coming out in drips.....and often hidden in other more sensational bad news. Look at share prices....they really deserve more news than there getting. Falling on average 1-2% a day.

I spoke to a chap who runs a online retail company....they are dead and he's said that they are writing off Christmas.

[TeddyBear]

Most I Banks have very strict clauses in employment contracts that no one can talk to the media about anything without special permission - don't think the government have anything to do with it in this case

Edited November 22, 2007 by TeddyBear

[South Lorne]

Most I Banks have very strict clauses in employment contracts that no one can talk to the media about anything without special permission - don't think the government have anything to do with it in this case

...agreed and that includes any third party who could talk to the media ......

[laurejon]

...agreed and that includes any third party who could talk to the media ......

Most companies of any significant size ask employees to sign a non disclosure agreement.

I sign this each and every year, and it covers everything from Christmas Parties, to just about anything you can think of.

[Pluto]

It is working, they are keeping the worst news out of the mainstream media. Most people know about the crunch but don't expect it to hurt that much...coz that's what the tele says. What they don't realise is that things are happening that could force unemployment up millions.

The news is coming out in drips.....and often hidden in other more sensational bad news. Look at share prices....they really deserve more news than there getting. Falling on average 1-2% a day.

I spoke to a chap who runs a online retail company....they are dead and he's said that they are writing off Christmas.

The City of London and Canary Whraf have been silent for the last couple of months. They are preventing runs on banks, however they aren't very successful at preventing runs on their stocks. How many times have financial stocks been halted in London the last month? Stockholders aren't stupid - apart from the daytraders who are playing with these stocks right now.

No, their silence is very telling. No news on bonuses or layoffs or hirings or anything. Not a PEEP. These clowns are the first to shout their mouths off when things are going their way.

We need to rip down the CCTV cameras and install them in bankers and government offices so we can see and hear what they are up to. They are the ones they need 24/7 surveillance.

[VacantPossession]

Source: Private Eye

Alistair Darling is a mortgage customer of Northern Rock, according to the Eye.

VP

[laurejon]

Source: Private Eye

Alistair Darling is a mortgage customer of Northern Rock, according to the Eye.

VP

I think you should add Brown, his Wife, and Tony Blair also to your list.

I found this information on a CD at my local market.

Edited November 22, 2007 by laurejon

[yaakov]

I think you should add Brown, his Wife, and Tony Blair also to your list.

I found this information on a CD at my local market.

[jdc]

Source: Private Eye

Alistair Darling is a mortgage customer of Northern Rock, according to the Eye.

VP

Not exactly the Eye's finest investigative journalism, given that Darling said it in Parliament three weeks ago.

[Guest mSparks]

Is it April 1 already? I hadn't even gone into hibernation yet.

You can tell that your mate is having you on for 2 reasons:

1) Saying that he is very confident that his own bank isn't in any trouble. ALL banks are in trouble in one form or another - whether it be from subprime, derivatives, or simply a timing mismatch of loans v borrowing.

2) Saying that all employees have been told not to leak anything. The only way this could be done would be via firm-wide emails. There's just no way that 300,000 people can keep a secret.

Hmm not so sure, I've been picking up more and more anecdotals from the banking front line recently, but the only common denominator is that they are all in the dark, both as to how banks work, and what their bank is exposed to.

'keeping things quiet' only needs limiting to a few people in the know - and they have obviously known about all this for months - you only need to look at bank and financial share prices to see that.

Take Lloyds TSB for example, very little has been made of their huge exposure to NRK shares, and Paragon, who only announced on Tuesday they were having problems raising capital in the financial markets.

Edited November 22, 2007 by mSparks

[South Lorne]

Hmm not so sure, I've been picking up more and more anecdotals from the banking front line recently, but the only common denominator is that they are all in the dark, both as to how banks work, and what their bank is exposed to.

.....you over estimate some people ...many of the top people up to board level don't have a grip of things...look at Barings and Northern Rock.....the real world is frightening...there are a lot of mouths around with little understanding ....applies to the credit rating agencies and the regulators.....

[VacantPossession]

Not exactly the Eye's finest investigative journalism, given that Darling said it in Parliament three weeks ago.

Fair point, but the Eye probably found this out before he announced it (delay between info and printing the mag). I don't think the Eye presented this as a scoop though....just reminding its readers of the fact.

VP

[Minos]

It is working, they are keeping the worst news out of the mainstream media. Most people know about the crunch but don't expect it to hurt that much...coz that's what the tele says. What they don't realise is that things are happening that could force unemployment up millions.

The news is coming out in drips.....and often hidden in other more sensational bad news. Look at share prices....they really deserve more news than there getting. Falling on average 1-2% a day.

I spoke to a chap who runs a online retail company....they are dead and he's said that they are writing off Christmas.

If you tell us who that is we will all go see. You never know he might drum up some business

[A.steve]

I've been wondering if something "big" is going down within finance for various unsubstantiated reasons - maybe just a lame hunch.

The thing I think is happening is a collaboration between investment banks with access to commercial bank funds. I think what they are going to be trying to do is to buoy up their share prices and/or capital reserves by mutual self-investment... erm... somehow. Their challenge is to manage to do this in such a way as each of their individual accounts looks sound and respectable... and only when you establish all the players can a deception be uncovered. This is, essentially, the same trick as Enron attempted to play... kiting debt and obfuscating accounts such that there appears to be profit, where - in fact - there is a loss. I have reason to believe that investment banks are worried that a scenario like that at Enron could arise within their organisation... I guess it boils down to a matter of trust about whether or not this represents a healthy regard for integrity - or a desire to weed out any potential whistle blower before they cause any damage.

Fairly obviously, such an operation would more likely succeed if the FSA were "in on it" - which might explain the suggestion of government involvement.