Just because the Tories have forgotten the cause of this crisis doesn’t mean that we all have to.
September 2008, and a supercharged financial crisis is about to hit. One of the biggest banks in the world, Lehman Brothers is about to go under, exposing the extent to which major sections of the financial world were build on toxic assets. The failure was system wide, and on both sides of the Atlantic the crash was unavoidable. Well known banking names came to the Government of the day for a solution. Think Lloyds, think Royal Bank of Scotland.
And in Alistair Darling and the Treasury they found a necessary saviour with a comprehensive rescue package. It is entirely credible that the actions of a few bankers put the entire economy of the country at risk, and that it was necessary to take measures to fight off that collapse. But as Government debt rose to pay for the bail out, it becomes increasingly clear that with the current Government in charge, the price of the crisis is going to be paid, by the working class.
Compare and contrast...
September 2010 Headlines on the BBC Business news this morning announce that Barclays Bank is to recruit its next Chief Executive from Wall St.
Bob Diamond is described as a “£100m” banker, a description derived not from the business that he does but the money that he has earned. As the head of the Barclay’s Capital division, he has specialised in the finance and capital markets rather than the mundane business of overdrafts and customers personal accounts .The speculation on the financial pages is that if the independent commission on banking enforce any division between investment and High St banks, It is the High St operation that would be ditched, for the more lucrative end of the market.
Barclays has been fond of claiming that in the banking crisis, they were able to raise the necessary finance, but only on the back of guarantees and emergency loans, from yes, you have guessed it, HM Treasury. Barclay’s Capital has been able to continue its speculative gambling, particularly in the American Markets on the backs on the British taxpayer. The collapse of Lehman plays a major part in the Barclay’s story and in case anyone has forgotten how the Wall St collapse emerged, there is a very useful reminder - http://www.propublica.org/article/banks-self-dealing-super-charged-financial-crisis.
Meantime you may be pleased to know that Mr Diamond is reportedly taking a cut in salary to only £11m per annum, or is worth approximately 550 public sector workers.
