Saturday, 14 February 2009

Our Good Money After Bad




Alistair Darling 'defends' the decision for Lloyds to take over the bankrupt HBOS.

When asked whether the losses represented a disaster for the taxpayer that he had caused, he said the government had "no alternative" but to act.

"We didn't have months or weeks to look at it, we had to intervene quickly and that is what we did," he said.



Robert ' His Masters Voice' Peston is now saying that it is nothing to do with Brown

Lloyds didn't have to buy enfeebled HBOS - even though the government encouraged it to do so.

Robert Peston 13th Feb 2009

The government has also said it will over-rule any concerns that competition authorities may raise, BBC Business Editor Robert Peston has learned.

He added the prime minister was involved in negotiating the deal, which has the blessing of UK authorities.

Robert Peston 17th September 2008

Sounds like to me Lloyds was placed under heavy duress to buy the sinking ship by Brown desperate to try anything that half looked like a rescue package.

HBOS is a bottomless pit they have no idea what their liabilities are, the prudent Lloyds were compelled in my book to take over a swamp of Debt, Brown in his usual fashion has now walked away from the car crash denying he was at the wheel at the time of the accident.

Lloyds's new problems spell more trouble for U.K. Prime Minister Gordon Brown. His government brokered the Lloyds-HBOS deal. It was part of a heralded bailout orchestrated by Mr. Brown to stabilize the country's banks.

Now, the glow around Mr. Brown has been extinguished, as his popularity falls again. As in the U.S., the bailout may need to be revamped, something that has already happened numerous times in the U.K.

Wall Street Journal Fri 13th February 2009

The constant refrain of we are a do something party from Labour, has rebounded on them they did something and it has failed.

No wonder Mandelson has gone very quiet of late.

Rather than accept that Bankruptcy goes with Capitalism, it purges the inefficient and imprudent, they tried to buck the market.

HBOS should have been placed into administration in October, and broken up into new regional banks under new competant management, not creating a super bank that is heading for nationalisation at our expense one month after being formed,and not with Brown's corrupt, shady and incompetant 'friends' in Banking in charge, like Moreno and Crosby.

UPDATE

Brown has just committed political suicide by ending final salary pensions for MP's

They will lynch him

27 comments:

Tomrat said...

Scrapping the FS Pensions? By far that is the single greatest thing the man has ever done.

Glad to see the scorched earth isn't just for us plebs...

anonemo said...

Except he hasn't scrapped it, he's ordered a "review". I wonder how long that will take.

Gareth said...

From the article about pensions: The Prime Minister has called for an investigation into how MPs’ retirements are funded because he fears they are becoming too expensive for the taxpayer.

The cynic in me expects the investigation will say we can afford them. I wonder which banker will write the report for him.

Alternatively Brown could nationalise public sector pension pots for the good of the nation (there will be tens if not hundreds of billions in them in total. How much of a taxpayer funded boost did that provide to the financial sector I wonder...), ban public sector final salary schemes and leave public sector pensions as unfunded as ours.

it's either banned or compulsory said...

Peston was on Radio 4 Friday afternoon claiming that it was 'made clear' to Lloyds that they could "walk away" from the deal ( so it's all Lloyds fault see ! ).

As for the ending of MPs FS pension, presumably that would only apply to new entrants ie the Tory newbs after the next election ?
All the current troughers would retain theirs even after being sacked by the electorate.

Anonymous said...

There is absolutely no way that Brown will abolish final salary pension schemes for MPs. This is just one of many soundbites that we have become used to over the past 11 years.

The "inquiry" alone will take us beyond the next GE.

Anonymous said...

Utter bollocks. As said above, this is a review, no more. Just add it to the list of thousands of reviews that achieve absolutely fuck all. Snotgobbler is going to spend every single penny you have and then those you haven't even earnt yet.
He likes spending penny's.

The Penguin said...

Yep, I suspect it's more headline grabbing soundbite than substance, designed to shift attention away from Brown's deep involvement with senior bankers.

The Penguin

Anonymous said...

"Alternatively Brown could nationalise public sector pension pots for the good of the nation (there will be tens if not hundreds of billions in them in total. How much of a taxpayer funded boost did that provide to the financial sector I wonder...), "

There is no pot, never has been. Its funded directly from tax.

John

Chalcedon said...

Har fucking har. you couldn't make it up. HBOS should have gone to the wall. But.....Bank.....of....SCOTLAND....I think we know why the dickhead wanted to save its bacon and all those votes for the SNP. Tut tut. Wasting taxpayers money on a tawdry vote winning(?) ploy. Isn't that illegal? And Lloyds was pretty prudent. So how did McBroon force them into taking over the shipwreck of HBOS? Promises or threats? Knowing labour it would be a stick rather than a carrot.

Love the bit about MPs final salaris/pensions. Perhaps we should go back to no salaries or expenses for MPs. Unions can pay for Labour and the multiplicity of jobs pay for the Cons.

Shirking From Home said...

They are really getting on my tits.

Anonymous said...

Why would you believe one fucking word these shysters say?

IUnknown said...

Everything the Prime Mentalist does is in this order:

1. Can I use it to avoid the shit kicking off?
2. Will it win my election?
3. Will I win over party support
4. Will it put one over on the Tories

Never, is it good for the country.

So Final Salary review, not action, and as previous posters have suggested will likely only to apply to new staff if it ever goes ahead.

It's still totally unaffordable...

Anonymous said...

'And Lloyds was pretty prudent. So how did McBroon force them into taking over the shipwreck of HBOS? Promises or threats?'

=======

The whole thing stinks. The board of Llloyds has a fiducary responsibility to run Lloyds for the benefit of the shareholders.

For the previous 5 years of this credit explosion, it did exactly that. But slap bang in the middle of the biggest banking crisis this country has ever it decides, right out of the blue, to pay maoney for a company that the whole world and his wife knew was a ticking time bomb.

Why did the board do it? The whole fucking deal stinks - and if we had any decent journalism in this country we'd know by tomorrow morning.

Tomrat said...

It does seem a bit too much like an olive branch to his detractors I admit...but how on earth will any seniour review board get away with saying what cannot be sustained in the private sector can be sustained in the public? There would be blood in the streets.

Thats also missing the other salient fact that many public sector workers have been putting money to this scheme only for it to act as another source of income; a travesty in itself.

Arseholes said...

Has Dolly punched Guido's lights out?

Giles Coren said...

I would vote for any political party that pledged to kill all the horrible, stinking, frightening dogs in this country. Every last fucking dog must be wiped out. I hate the fucking awful things.

The other day a big, horrible slobbering dog came towards me wagging it's horrible big tail. I thought it was going to bite me so I wet myself and shit my pants.

The horrid dog tried to lick me so I felt sick and started to cry. Its horrible, working-class oik owners, who I think were white-trash from the local council estate, started laughing at me and calling me horrid names like "wanker" and gaylord".

Dog-owners make me sick and so do their filthy dogs.

bofl said...

do not let the lying fuckers fet away with it.....every day they try to re-write history.....

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4772801.ece

brown is up to his ears in all of this......

hbos should have been allowed to go tits....everything Brown does is to win votes( or keep them)

halifax/bank of scotland...
royal bank of scotland.....
northern rock.........

all 'saved' because of votes in labour strongholds......

they are all devious lying incompetent criminals......

please feel free to aste the link all over the net....

Shirking From Home said...

I see Dolly has gone nuclear now.

Fucking twat.

Said Iqbal said...

I agree with Mr Coren. Dogs are filthy, unclean creatures and should be wiped out. There is no place for them in modern, multi-cultural Britain.

Allah Akhbar

Anonymous said...

Have the men in white coats come to take Dolly away yet? I see he's now trying to stir up all LabourLost readers to complain to Guido's advertisers. With a letter already created for a quick 'copy & paste' & highlighted email addresses supplied for those labour supporters who have benefitted from a labour education & have trouble writing or spelling. I see someone has complained to BACP re his qualification claims & someone else has complained to Mandy about his editorship? of LabourLost. Not a good w/end for him is it? Try this for a laugh http://www.youtube.com/watch?v=cqBFF6TDI8I

Re Gordo & the pensions - a) it's only a review so unlikely to happen b)if it does happen, I bet it will only apply after the next GE so the current pack of troughers, Tango Man, Ballses, Second Home Secretary Spliff etc will still benefit.

Gareth said...

John, 14 February 2009 09:23,

There are pension pots for some public sector workers.(Though the obligations are not completely covered) Over the years huge amounts of taxpayer's money went into the Local Government Pension Scheme, and have been handed to investment bankers and hedge funds to manage.

Look at the accounts for a few councils. Eg Bath and North East Somerset

The LGPS funds in England alone is approaching £120billion.

Screech said...

I have noticed how the Bank of Scotland, in one of its various guises or another, is never quite out of view when anything on the current financial crisis is reported. I wonder if the "One eyed Scottish idiot" were to disappear, would we hear so much about them?

Guthrum said...

Though the obligations are not completely covered

£1 trillion is not covered !

Mitch said...

I just had the dubious pleasure of driving through Walsall town center and while stuck in a seemingly endless traffic jam saw a man, he was dressed like a copper same hat,radio and he looked gormless enough but on his back were the words

CIVIL ENFORCEMENT OFFICER.

What the fuck ? any ideas?

Bladebone said...

Giles Coren you pathetic little nonse, take your Paki friend and fuck off or I'll set me Rottie on yer.

Sir Henry Morgan said...

Shirking

Psycho the rapist Dolly.

No, that's not quite right. Let me think for a moment - ah yes, there it is:

Psycho, the rapist Dollywog.

That's better.

I don't suppose you'd like to make her brainlette explode would you?

Yes? ... OK, send him this link from my blog:

http://wiganpatriot.blogspot.com/2009/02/golliwogs-and-racism.html

WV - bimpoke

Gareth said...

Yes Guthrum. A massive liability. It makes no sense to me for there to be a piecemeal approach. Either they are all unfunded (which itself is a bad thing but we are too far behind to catch up) or they are all funded (which we cannot afford).

To squirrel some money away means taxpayers get the worst of both worlds - rapidly growing unfunded liabilities and bigger tax demands/less services as more and more is put into the funded parts of the pots. It has served as an additional bailout to the financial sector. They have been as much a client of the state as any dolescum.

That's why I suggest these funds could be mobilised. Give taxpayers a rebate. Use it as capital to set up good banks rather than bail out bad ones. And use the enormity of the liabilities as a good excuse to cut the numbers of public sector workers and either make public sector pension provisions less cushy or reduce public sector wages. The whole point of the cushy pensions was to make up for the lower than private sector pay. Now they've got both, and most egregiously it's the useless shits at the top who are raking it in. Swingeing paycuts, with those at the top seeing the biggest cuts and those at the bottom losing nothing would put the balance back to what it was.

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