Gordon Brown and Treasury accused on banking crisis

Patrick Hosking, Financial Editor
A fateful decision 12 years ago by Gordon Brown, egged on by envious 
Treasury officials, led to the catastrophic failure of UK regulators to 
anticipate and prevent the banking crisis, according to a former Bank of 
England director and City grandee.

Sir Martin Jacomb, a former chairman of Prudential and director of Barclays, 
criticised the Prime Minister for his "disastrous" decision while Chancellor 
to strip the Bank of responsibility for banking supervision and hand it to 
the newly created Financial Services Authority.

Sir Martin, who was a director of the Bank for ten years until 1995, also 
claimed that the decision was "at least partly the outcome of long-harboured 
but unspoken jealousy and suspicion" at the Treasury.

He said: "The Treasury has long been envious of the Bank of England. Viewed 
from Whitehall, the Bank seems grander, with a long and splendid reputation, 
particularly internationally, and with relationships with other central 
banks which give it a special air of authority."

more...

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6410087.ece?&EMC-Bltn=GBNCRA

Shaun wrote:

> He said: "The Treasury has long been envious of the Bank of England. 
> Viewed from Whitehall, the Bank seems grander, with a long and splendid 
> reputation, particularly internationally, and with relationships with 
> other central banks which give it a special air of authority."

It figures. The Treasury have always struck me as the politicised civil 
servants (not in the sense of party politics) whereas the Bank was 
indeed worried about the economy, long term.

BICBW, of course.

-- 

Doug

"Doug"  wrote in message 
news:stednVwIOdm6GLjXnZ2dnUVZ8kNi4p2d@pipex.net...
> Shaun wrote:
>
>> He said: "The Treasury has long been envious of the Bank of England. 
>> Viewed from Whitehall, the Bank seems grander, with a long and splendid 
>> reputation, particularly internationally, and with relationships with 
>> other central banks which give it a special air of authority."
>
> It figures. The Treasury have always struck me as the politicised civil 
> servants (not in the sense of party politics) whereas the Bank was indeed 
> worried about the economy, long term.
>
> BICBW, of course.
>
> -- 
>
> Doug


Indeed, but, "the politicised civil  servants" shouldn't mean "fraudulent 
civil servants"
as it appeares to be at this moment......-;)

McIntyre wrote:
> "Doug"  wrote in message 
> news:stednVwIOdm6GLjXnZ2dnUVZ8kNi4p2d@pipex.net...
>> Shaun wrote:
>>
>>> He said: "The Treasury has long been envious of the Bank of England. 
>>> Viewed from Whitehall, the Bank seems grander, with a long and 
>>> splendid reputation, particularly internationally, and with 
>>> relationships with other central banks which give it a special air of 
>>> authority."
>>
>> It figures. The Treasury have always struck me as the politicised 
>> civil servants (not in the sense of party politics) whereas the Bank 
>> was indeed worried about the economy, long term.
>>
>> BICBW, of course.
>>
>> -- 
>>
>> Doug
> 
> 
> Indeed, but, "the politicised civil  servants" shouldn't mean 
> "fraudulent civil servants"
> as it appeares to be at this moment......-;)

Gad, it's two months since I dropped in here!

Yes, you're right. While I disagreed with Maggie, it was Tony Blair who 
extended her ideas but (far worse) he was IMHO totally unprincipled, and 
this seemed to carry down the organisations in time so that now they're 
all doing it.

A million people on the march? Ignore them. A highly respected scientist 
found  dead in mysterious circumstances? Well, that was a bit of a blow 
- but it cooled down pretty rapidly when we just looked the other way. 
Public enquiries nobbled by over-restrictive terms of reference allow 
you to declare victory even without having read the report, and our 
Fourth Estate gasped in admiration, because they hadn't read the report 
either.

The economic non-crisis was upon them before they knew it. Bit I knew 
it, and so did many others I spoke to - long before the stock market 
collapsed. When it did, *everyone* in the financial regulation community 
resembled birds in front of a snake - paralysed by fear.

They needn't have worried, because accountability has gone. The banks 
are now back dealing in the poisonous derivatives with massive bonuses, 
with a self-righteous indignation at the amount of money they missed out 
on over the past twelve months. Meanwhile, you and I will have to pay 
for the lost money - enough to keep the UK in debt for the next 40 years.

There is no such thing as fraud these days, because we've lost sight of 
public ownership and its onerous burdens which ought to be carried by 
our public servants. The taxpayer is a nebulous concept - a source of 
money continuing into infinity and available for diverting funds in 
accordance with the slightest whim of those we used to trust - and 
indeed, those who are now threatening the tax system with the weight of 
their demands. I'm not only thinking of their scandalous pensions, nor 
indeed of the fabulous sums they earn and make available to their 
friends under the term "consultancy". What really make me fume is the 
massive sense of Entitlement which allows one MP to suggest his salary 
should be doubled. Actually, I agree with that - once all the rest of us 
get it. MPs should be last in the queue.

-- 

Doug

On 2009-08-21, Doug  wrote:

> Yes, you're right. While I disagreed with Maggie, it was Tony Blair who 
> extended her ideas but (far worse) he was IMHO totally unprincipled, and 
> this seemed to carry down the organisations in time so that now they're 
> all doing it.
>
> A million people on the march? Ignore them. A highly respected scientist 
> found  dead in mysterious circumstances? Well, that was a bit of a blow 
> - but it cooled down pretty rapidly when we just looked the other way. 
> Public enquiries nobbled by over-restrictive terms of reference allow 
> you to declare victory even without having read the report, and our 
> Fourth Estate gasped in admiration, because they hadn't read the report 
> either.
>
> The economic non-crisis was upon them before they knew it. Bit I knew 
> it, and so did many others I spoke to - long before the stock market 
> collapsed. When it did, *everyone* in the financial regulation community 
> resembled birds in front of a snake - paralysed by fear.
>
> They needn't have worried, because accountability has gone. The banks 
> are now back dealing in the poisonous derivatives with massive bonuses, 
> with a self-righteous indignation at the amount of money they missed out 
> on over the past twelve months. Meanwhile, you and I will have to pay 
> for the lost money - enough to keep the UK in debt for the next 40 years.
>
> There is no such thing as fraud these days, because we've lost sight of 
> public ownership and its onerous burdens which ought to be carried by 
> our public servants. The taxpayer is a nebulous concept - a source of 
> money continuing into infinity and available for diverting funds in 
> accordance with the slightest whim of those we used to trust - and 
> indeed, those who are now threatening the tax system with the weight of 
> their demands. I'm not only thinking of their scandalous pensions, nor 
> indeed of the fabulous sums they earn and make available to their 
> friends under the term "consultancy". What really make me fume is the 
> massive sense of Entitlement which allows one MP to suggest his salary 
> should be doubled. Actually, I agree with that - once all the rest of us 
> get it. MPs should be last in the queue.
>

*applause*

-- 
                       "Atheists pay taxes too."
                    http://hyperangry.blogspot.com/
       [email me, if you must, at huge {at} huge (dot) org <dot> uk]

Huge wrote:

> 
> *applause*
> 

Why, thanks! I don't feel any better for getting it off my chest :-(

Actually, as I approach retirement, I really feel sorry for the kids 
these days. They're going to be in serious trouble, having to pay that 
vast public debt (which will become the new norm; politicians won't care 
about it). I'll be dead before that debt's paid off - but I fear for my 
pension. Having my private pension sucked dry by the likes of Equitable 
Life and Canadian Imperial Life, I'm now dependent on the old age 
pension to pay bills. That's not a happy position to be in.

-- 

Doug

On 2009-08-22, Doug  wrote:
> Huge wrote:
>
>> 
>> *applause*
>> 
>
> Why, thanks! I don't feel any better for getting it off my chest :-(

You might enjoy my blog - URL in the sig

> Actually, as I approach retirement, I really feel sorry for the kids 
> these days. They're going to be in serious trouble, having to pay that 
> vast public debt (which will become the new norm; politicians won't care 
> about it).

Too true. Once politicians discover that they can spend our grandchildren's
money without consequence, we're properly screwed.

> I'll be dead before that debt's paid off - but I fear for my 
> pension. Having my private pension sucked dry by the likes of Equitable 
> Life and Canadian Imperial Life, I'm now dependent on the old age 
> pension to pay bills. That's not a happy position to be in.

My sympathy. I'm not far off retirement myself, and I'm frightened
shitless about what those fucks in Downing Street and the City have done,
are doing and will do in the future.


-- 
                       "Atheists pay taxes too."
                    http://hyperangry.blogspot.com/
       [email me, if you must, at huge {at} huge (dot) org <dot> uk]

Huge wrote:
> On 2009-08-22, Doug  wrote:
>> Huge wrote:
>>
>>> *applause*
>>>
>> Why, thanks! I don't feel any better for getting it off my chest :-(
> 
> You might enjoy my blog - URL in the sig

Noted, thanks.

We're obviously about the same age. I'm thinking of a book which sets 
down the various attitudes we adopt with increasing years. I did grok 
this when I had my first managerial position at 25, reporting to a guy 
aged around 50-ish. I saw that he was able to see (in his words) "the 
overall overall", so that he was useless at the normal day-to-day 
happenings within the company, but possessed invaluable insights when 
talking about the marketplace. I can offer that now, but the world has 
changed, and I'm simply an obstruction to younger, more thrusting 
up-and-coming individuals.

> 
> Too true. Once politicians discover that they can spend our grandchildren's
> money without consequence, we're properly screwed.

It's not just politicians - it's a feeling abroad that accountability 
doesn't exist, and it's implemented by bureaucrats because it suits 
them. From local councils to regional departments to national quangos, 
there's a club (which I'd love to become a member of) which offers 
salaries of £35k for three days a week. At least, that's how it used to 
be - nowadays, such positions aren't even advertised; they're filled by 
internal candidates.
> 
> My sympathy. I'm not far off retirement myself, and I'm frightened
> shitless about what those fucks in Downing Street and the City have done,
> are doing and will do in the future.

Yup. Eat the grass and wait for slaughter.

-- 

Doug