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Don’T Blame The Hbos Bankers, Blame The Politicians Who Cosied Up To Them

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Interesting article in the Telegraph's financial section.

Don’t blame the HBOS bankers, blame the politicians who cosied up to them

Some of the highlights:

Today’s report from the Parliamentary Commission on Banking Standards is not so much a post-mortem examination as an 88-page j’accuse, one which concludes that all three should be barred from the industry..........

Not so long ago, politicians were infatuated with bankers. Indeed, there is suspiciously little in the report about how Lord Stevenson and Sir James came by their fancy titles. The answer, of which the Labour members of the commission are all too aware, is that Gordon Brown pretty much governed in coalition with the banks. His appetite for tax revenue was every bit as great as theirs for profit. The financial services sector paid two fifths of all corporation tax collected – and every bonus it handed out was split 60/40 with Brown and Blair............

Of course, heaven has no rage like love turned into hatred, and so it is with Labour and the bankers. Its MPs helped to strip Fred Goodwin of his knighthood because they saw in his very title conclusive proof of their former collusion........

Financial greed is always dangerous, but when paired with political vanity it becomes lethal. By working hand-in-glove with the financial sector, Labour ran a form of crony capitalism – and allowed the banks to have loans of up to 35 times their assets. Brown’s government was so dazzled by the tax haul, so swept up in the party spirit, that it left the teenagers with the car keys and a case of tequila. The crash was inevitable.

This is the real, scandalous truth about the financial crisis. If the HBOS trio really were as wicked as the commission suggests, why didn’t the regulator shop them? Today’s report takes us close to the answer. The FSA, it says, was not so much the dog that didn’t bark, as the dog that was barking up the wrong tree. It focused on small savers and tended not to bother the financiers – who were regarded, by Brown, as untouchable.

Sir Mervyn King, the Bank of England Governor, has normally refrained from admitting as much. But in his final weeks in the job, he is becoming more candid. Last month, he gave evidence to the commission, and came as close as he ever has to admitting what was really going on. “Before 2007, the only time there was a speech about regulation from the prime minister was when there was an attack on the FSA for over-bureaucratic regulation,” he said. “That was the climate in which the regulators operated. It was extraordinarily difficult. They knew that if they were tough on a bank, the chief executive would go straight to No 10 or No 11 and say: 'This was an attack on the UK’s most successful industry’.....

The financiers, after all, did not cause this downturn. They added to the drama, but the basic problem was (and remains) one of overspending. The £1.2 trillion national debt, with which the Chancellor is wrestling so unsuccessfully, does not contain a penny of bail-out money. The crisis Britain faces is one of government spending – something concealed during the artificial boom, but now exposed. Deporting every banker in London will not change this simple fact.

Edited by Goat

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The idea that G. Brown was responsible for HBoS' toxic loan book is beyond parody. Presumably he was chief architect of the subprime lending bubble in America too?

As for quoting the oaf King, least capable Governor of the Bank in its entire 300 yr history? Here's what he had to say in 2007 about the unfolding disaster:

'..the major banks in the world, they have the ability to cope with this crisis...it isn't a threat to the banking system as a whole.'

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The idea that G. Brown was responsible for HBoS' toxic loan book is beyond parody. Presumably he was chief architect of the subprime lending bubble in America too?

As for quoting the oaf King, least capable Governor of the Bank in its entire 300 yr history? Here's what he had to say in 2007 about the unfolding disaster:

'..the major banks in the world, they have the ability to cope with this crisis...it isn't a threat to the banking system as a whole.'

Yep, an attempt to absolve the bankers of blame via the analogy of misguided teenagers. Disgraceful.

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Looks like a carefully placed negative banker story about Labour the weekend before the Tories give 100K a year tax breaks to dozens of bankers to me.

Not disputing the story, but the timing is rather 'convenient' for Dave, Gidiot and Co.

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The politicians are the PR people - or more accurately, professional con artists and liars.

They are there to convince the general population that they have a say in the affairs of the state that affect their lives.

People who believe that they are living in a 'democracy' are much less likely to question decisions which are blatantly against their interest than people who are being openly oppressed in a dictatorship/one-party state etc. Therefore much less effort needs to be expended on the part of the rulers to keep the population in line. The plebs are more productive too, a double win for the elite.

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The politicians are the PR people - or more accurately, professional con artists and liars.

They are there to convince the general population that they have a say in the affairs of the state that affect their lives.

People who believe that they are living in a 'democracy' are much less likely to question decisions which are blatantly against their interest than people who are being openly oppressed in a dictatorship/one-party state etc. Therefore much less effort needs to be expended on the part of the rulers to keep the population in line. The plebs are more productive too, a double win for the elite.

Rich people paying rich people to tell middle class people to blame poor people?

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clearly the blame has to be put squarely on politicians and those voters who mandate them, they make the law full stop, nothing else, if the law is not enforced blame judges, bankers are just ambulance chasers. If they own politicians i dont see how this isnt the fault of politicians because to reiterate, they make the law

The law is all that matters (ok so theres parliamentary privilege that puts them above the law), but again that is the law as they mandate it and voters mandate them to mandate it (ok this ignores the reality that for more than 20 years in the uk the largest block of voters has chosen no representative, but we are equally to blame as we allow parties to ride ruffshod over the democratic majority, we just dont call it democracy, whilst politicians and voters do despite the mathematical absurdity of their position)

As for money,well this is just a maturing debt cycle that will end and enforce poverty/reality for a bit at some point, mainly on those who call themselves middle class, not sure that money outside of FIAT is a solution to that inevitable irrational exhuberance

Edited by Tamara De Lempicka

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Rich people paying rich people to tell middle class people to blame poor people?

Very good. :D .....without the poor there would be no rich. ;)

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Obviously the ongoing five year depression is all down to Labour, for not taking inspiration from China in how to handle corrupt bankers....

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Don’T Blame The Hbos Bankers, Blame The Politicians Who Cosied Up To Them

says the Barclay brothers.

Exactly how did the Halifax building society end up owning a Scottish investment bank in the first place?

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The politicians *are* to blame.

But then again, so are the bankers. They were complicit together.

Lock them all up, I say.

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It's like saying 'Don't blame the criminals, blame the police they bribed'.

Failure by authority does not excuse crime.

Edited by nmarks

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It's like saying 'Don't blame the criminals, blame the police they bribed'.

Failure by authority does not excuse crime.

if authority dictates what crime is then its a bit silly to blame what you percieve as crime rather than the corrupt authority who are mandated to enforce it, crime is what the authority says it is, to go all guardian, otherwise you go all boba fette which apparently isnt civilized, whereas mandating a special flower to enforce corruption is apparently civilized

Edited by Tamara De Lempicka

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The idea that G. Brown was responsible for HBoS' toxic loan book is beyond parody.

[/i]

He changed the regulator in 1997 which had stopped things like HBOS for over 100 years. 10 years later things go pearshaped

I am amazed that anyone thinks that he is innocent.

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He changed the regulator in 1997 which had stopped things like HBOS for over 100 years. 10 years later things go pearshaped

I am amazed that anyone thinks that he is innocent.

well yes, the Uk could always have collapsed in 2000 after the tech boom, funnily enough i dont think id have done much to ensure that myself if i was PM, they could have collapsed in the late 70s aswell if they hadnt found the nirvana of private off balance sheet mortgage debt

Edited by Tamara De Lempicka

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if authority dictates what crime is then its a bit silly to blame what you percieve as crime rather than the corrupt authority who are mandated to enforce it, crime is what the authority says it is, to go all guardian, otherwise you go all boba fette which apparently isnt civilized, whereas mandating a special flower to enforce corruption is apparently civilized

At the end of the day, the electorate give the politicians the authority.

If people educated themselves and kept vigilant against the misbehaviour of the politicians - punishing them by kicking them out come election time - they could conceivably enact change.

Unfortunately, much of the public are pretty thucking fick and as a result we end up with the country being run for the benefit of a small number of elite people whilst most of the population lives in the delusion (fostered by the mass media) that they actually have a say. Even if you have a clue and aren't happy at how things are being run, you are swept along in any case by the tide of public stupidity and ignorance.

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At the end of the day, the electorate give the politicians the authority.

If people educated themselves and kept vigilant against the misbehaviour of the politicians - punishing them by kicking them out come election time - they could conceivably enact change.

Unfortunately, much of the public are pretty thucking fick and as a result we end up with the country being run for the benefit of a small number of elite people whilst most of the population lives in the delusion (fostered by the mass media) that they actually have a say. Even if you have a clue and aren't happy at how things are being run, you are swept along in any case by the tide of public stupidity and ignorance.

well yes id go along with that up to the point where as i have stated the democratic majority in the uk for decades have chosen no representative, yet have had one foisted on them from a minority, which to confirm my point is about as democratic as Kampuchea in that they both call themselves democracies, therefore are and can happily ignore literal physics

Edited by Tamara De Lempicka

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if authority dictates what crime is then its a bit silly to blame what you percieve as crime rather than the corrupt authority who are mandated to enforce it, crime is what the authority says it is, to go all guardian, otherwise you go all boba fette which apparently isnt civilized, whereas mandating a special flower to enforce corruption is apparently civilized

There is a distinction between the law and its enforcement.

Failure to enforce the law is no excuse to break it.

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There is a distinction between the law and its enforcement.

Failure to enforce the law is no excuse to break it.

there is no law without enforcement as every state on the planet will happily exploit

Just because you may be whiter than white its completely pointless when you give someone power to make up white as they go along

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Strange sentiment. I don't blame the police if I get burgled, I blame the thieving scum burglar. Same with the banks.

I don't remember the Tories calling for restraint on the banking sector either, quite the opposite.

Edited by sossij

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Strange sentiment. I don't blame the police if I get burgled, I blame the thieving scum burglar. Same with the banks.

So you blame the burglar when he mosies into court and the police say, "your wasting your time mate, hes innocent and we wont give evidence against innocent people,so drop the case, its pointless" actually whilst youre at it imburse the accused from the plaintiff for their troubles

No wonder you are getting screwed arsh backwards from sideways

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NO!!

Blame the bankers. They are half wits with no understanding of what is going on

Blame the politicians. They are half wits with no understanding of what is going on.

Blame the regulators They are half wits with no understanding of what is going on

Blame the large shareholders, They are half wits with no understanding of what is going on

The large shareholders (your pension scheme fund), regulators,politicians and bankers have all been paid massive amounts of money by us to act in a completely

incompetent manner.

They are still largely perceived as experts. Get angry and stop them.

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The idea that G. Brown was responsible for HBoS' toxic loan book is beyond parody. Presumably he was chief architect of the subprime lending bubble in America too?

As for quoting the oaf King, least capable Governor of the Bank in its entire 300 yr history? Here's what he had to say in 2007 about the unfolding disaster:

'..the major banks in the world, they have the ability to cope with this crisis...it isn't a threat to the banking system as a whole.'

Browns treasury issued the BoEs inflation targets, and simply changed what counts as inflation (ie removed house prices) when he needed too. The subsequent low rates fuelled the boom. I guess it could be argued he created the conditions for HBOS's toxic loan book as much as anyone...

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  • 242 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
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      • up 5%



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