Friday, 13 February 2009

To Lose One Key Adviser is Unfortunate; But Two!

For Gordon Brown to have have lost Sir James Crosby as a key adviser and deputy chair of the Financial Services Authority (FSA) because of the sacking of the HBoS whittle blower was unfortunate. In the space of a few days to find that Glen Moreno, who heads UK Financial Investments (UKFI) which overseas the public £37bn investment UK banks, may also go as a result of his former bank was linked with tax evasion, is disastrous.

With bankers falling over themselves in the orchestrated dance of the sorrowful during the week. While bonuses are still being flaunted around in a year of disastrous returns for the bank. Then ignoring sage advise and taking part in illegal practices, just where is the rule book for bankers and is it time for it to be dusted off from whatever dusty corner it is languishing in.

These are two of the men that are advising Gordon Brown on our economy. Now I'm not saying that Gordon didn't chose well respected bankers. It would appear that he did. However, even these well respected bankers appear to have been more complacent in bending rules, ignoring sound advice and generally building up this fine mess than had previously been recognised.

It would appear that our bankers have lost sight of the job in hand. Providing a sound financial footing to allow us all individual customers, business and government bodies to be able to function. They have had their judgement muddled by greed, which when you see the size of the bonuses for success, and seemingly (from what is said) the cast iron seal protected those bonuses no matter what.

No matter how Gordon has tried to shift the blame to the American situation, what is now emerging is that the UK did nothing to cover themselves in case of failure. They followed glibly into the problems of over extension to find themselves heavily exposed when the bottom fell out of the markets and all confidence was lost.

Time for a major rethink and massive overhaul of the banking sector and its regulations and regulatory bodies.

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