Monday, 8 June 2009
FFS-City investment banks send Treasury £9m bill for advice on financial crisis
Create the problem,Advise how to get rid of the problem, charge a shedload of fees for the advice- you cannot make it up !
The Treasury hired a swath of investment bankers for advice on how to stabilise the financial system and avert the collapse of more lenders. It also sought advice on how to help investment banks purge themselves of billions of pounds worth of bad debt on their balanace sheets.
Lord Oakeshott of Seagrove Bay, the Liberal Democrat Treasury spokesman, told The Times: “Taxpayers are paying through the nose for Treasury officials’ ignorance of how the City works. From my experience of dealing with them on the nationalisation of Northern Rock, it’s matched only by the arrogance.”
The peer added: “Because the Treasury has no core expertise, it has been running in desperation to the City who are not able to give proper independent advice. Many of these investment banks were on the one hand creating the toxic investments which made the crisis much worse and on the other taking fees to get us out of it.”
There you have it, if you did not have it before, Brown/Darling have not a clue what they have been doing for the last twelve years.