What colour are your
spectacles ?
“Bank failures are caused by depositors who don’t deposit
enough money to cover losses due to mismanagement.”
-
Dan Quayle.
What a mess. Still only part way
through one of the biggest banking crises in history, yet having suffered
grievous losses across multiple asset classes, we don’t appear to have learned
very much. Relations between the UK’s tripartite oversight authorities seem to
be deteriorating into acrimony and turf warfare even as the regulatory pendulum
gains in weight and momentum. The banking and financial services sector is fast
becoming a political football. Taxpayers deserve better. Maybe they will get mildly
less incompetent treatment from the next government. Meanwhile, Wall Street firms
that are only in existence due to the unconsulted largesse of US taxpayers are
planning to boost executive pay. Citigroup (current share price: circa $3,
which makes it the equivalent of a penny stock), having received $45 billion in
“government” bail-out funds, now wants to increase some of its banking salaries
by up to 50%. Did the events of 2008, during which the taxpayer rescued Wall
Street and the City, never actually happen ?
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