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Comeback For Shamed Hbos Team

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http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7144798.ece

A team of HBOS bankers who led a doomed buying spree at the height of the boom have landed lucrative jobs managing the same assets the taxpayer had to bail out in 2008.

Graeme Shankland, who headed the integrated finance operations for Bank of Scotland before its rescue by Lloyds TSB, led an eight-year deal spree in which HBOS paid top-of-the-market prices for stakes in an array of British companies.

Lloyds put the investment portfolio on the market in late 2008 but has only just managed to offload it. Coller Capital, the private equity group, has taken a 60% stake. Lloyds will retain the rest.

Shankland and a team of about 20 are joining the new vehicle that has been set up by Lloyds and Coller. Graham Clempson, formerly of Deutsche Bank, and now a partner at Midocean Partners, the private equity firm, has been appointed as independent chairman.

The portfolio includes stakes in D&D, Sir Terence Conran’s restaurant empire, TM Lewin, the shirtmaker, and Vue Cinemas. It was estimated to be worth almost £1.3 billion at its peak but is now valued at closer to £500m.

Shankland bought into 60 businesses. Typically the deals were structured in such a way that Bank of Scotland issued debt to the companies in exchange for equity. Only 45 companies were included in the sale to Coller because some have already been sold.

One private equity source described the deal as a reward for failure. “These guys were just given the keys to the piggy bank and they went on a huge spree. In the process they lost the bank millions. Lloyds should have had the gumption to fire them but instead they get a cushy job.”

One rule for highly paid bankers and another for the rest of us. I wonder how many of us would keep our jobs if we screwed up in this way?

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One rule for highly paid bankers and another for the rest of us. I wonder how many of us would keep our jobs if we screwed up in this way?

But they didn't screw up, they did what was their role in this staged crisis, so why should their masters punish them?

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http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7144798.ece

One rule for highly paid bankers and another for the rest of us. I wonder how many of us would keep our jobs if we screwed up in this way?

Yes, totally disgraceful and they keep on banging on about a 'meritocracy'. All this bailing out of banksters is making me (a previously committed capitalist) rethink my whole economic mindset.

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Yes, totally disgraceful and they keep on banging on about a 'meritocracy'. All this bailing out of banksters is making me (a previously committed capitalist) rethink my whole economic mindset.

As a capitalist, I believe that the banks should have been allowed to fail. Deposit guarantees should have been honoured but everyone else taking risk in exchange for potential future reward should have only recovered the value left for those in their position in the capital structure.

The bailout of the bankers was executed by governments who bear the responsibility for their anti-capitalist actions. They are the ones who took specific actions which prevented bankers and investors from bearing the costs of the errors made.

The bailout of banks and bankers is distasteful. We all need to remember who did the bailing.

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As a capitalist, I believe that the banks should have been allowed to fail. Deposit guarantees should have been honoured but everyone else taking risk in exchange for potential future reward should have only recovered the value left for those in their position in the capital structure.

The bailout of the bankers was executed by governments who bear the responsibility for their anti-capitalist actions. They are the ones who took specific actions which prevented bankers and investors from bearing the costs of the errors made.

The bailout of banks and bankers is distasteful. We all need to remember who did the bailing.

Yes, that is what capitalism should be about - creative destruction as Schumpeter opined. However, the practice is so different from the theory is it not? That's why Marx was onto something when he predicted the capitalist system would collapse under the weight of its own contradictions - and personally speaking, that can't come soon enough.

Edited by shermanator

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SFO mustn't have noticed this one.

Perhaps if they were Icelandic, or Greek.

Shankland, Shankland, nope, sounds ok to me. Move along, nothing to see here.............

Still, Cameron, Clegg and Vince must be very satisifed with this deal. They wouldn't have sanctioned it otherwise.

Edited by Red Karma

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Yes, that is what capitalism should be about - creative destruction as Schumpeter opined. However, the practice is so different from the theory is it not? That's why Marx was onto something when he predicted the capitalist system would collapse under the weight of its own contradictions - and personally speaking, that can't come soon enough.

An outcome that I haven't discounted is that we actually get to a position where the state collapses under its own weight and shrinks to the extent that capitalism can rise from the ashes of our current state managed economy.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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