The Independent Hints Fred the Shred Can’t Spell
This was in Christina Patterson ‘s piece in yesterday’s Independent.
Our rich may not be really, really rich, but they are such sweethearts. Just think of Bob Diamond, who went out of his way to explain to the rest of us the rules about banking and remorse. Or Fred the Shred. Who has, by the way, just got a superinjunction to stop him being called a banker. But perhaps he can’t spell.
What can she have been hinting at?
Incidentally, to my eyes any resemblance between Fred Goodwin and my image of the perfect banker is purely coincidental.
Could We All Own Part of the Taxpayer-Owned Banks?
Liberal Democrat MP is suggesting that all adults on the electoral roll be given about a £1,000 of shares in the taxpayer-owned banks.
It looks that it could be a good idea, especially if the conditions are got right. After all it could be argued that they were bought with our money.
If nothing, it would mean that the electoral roll would probably be better than it is in some places now.
But there would have to be substantial protection against fraud. And I hope the sharesare restricted to those owning British passports.
King says “Bank Reforms Must Not Fail”
The headline of this post is taken from an article on the BBC web-site.
Meryn King makes a lot of good points, but on the other hand why shouldn’t banks fail? And when they do why should those behind that failure be rewarded with large bonuses?
When Northern Rock failed, we were able to rescue what was left and it is now back in the land of the living. But the managers were really criminally responsible for what they did. Did they know that the government would bail Northern Rock out, so they just didn’t care? It doesn’t matter but those irresponsible managers weren’t prosecuted. And where are they now? I bet they live comfortably in large houses somewhere, when a lot of their unfortunate employers are struggling badly in damp flats.
I should add here, that years ago I part-owned a finance company. I was worried about what would happen if something catastrophic happened to one of the principles. As its lending was basically sound, all we would have needed to do, was just run the company into the ground collecting the debts and cutting expenses to the bone to get all of our money back. I think this is what was done with Northern Rock, so when a bank goes bust, everything is not lost.
If we look at HBOS and RBS, then they should have been treated the same way as Northern Rock. But the failure of two banks in NuLabor heartlands couldn’t be allowed to happen. In the end however, Lloyds was brought into the mess to save NuLabor’s face and a good sound bank was ruined. The only things that are important in my way of thinking about banks, is that the money of innocent customers is safe and companies and individuals that need to borrow have access to funds.
In part, since the banking crisis, things have got better, as customer money is now safe, but obtaining funds for a reputable purpose has got difficult. Unless of course you have no credit rating, so you can go down the pay-day loan route and bankrupt yourself.
I suspect too, that people are now less likely to bank in countries like Iceland. Why incidentally, does the UK government have to bail out the Icelandic banks, so those greedy individuals who put their money offshore get their money back? I prefer to bank with a building society and speculate using Zopa. And with Zopa, I’m getting five or six percent by following a conservative strategy.
So King’s statement that reforms must not fail is correct, but those reforms must not ruin the banks, as NuLabor ruined Lloyds.
And those reforms must not bring companies like Zopa into the grasp of the FSA. But I suspect there will be pressure for this, as the Zopa model is low-cost for borrowers and lenders, and I can see it growing to be very large. Will the major clearing banks allow this? I doubt it and they will have the King’s ear.
Money Transfer – Libyan Style
A ship containing a £100 million of Libyan bank notes has been seized by the UK Border Agency according to this report.
We could burn it to generate electricity or perhaps the government could give us all a few notes to perhaps use for a sensible purpose like stopping tables from rocking. Or perhaps as stand-by toilet paper!
The Land Bank Scam
I first came across these land investment scams about three years ago, when my late son built a web site for a company that was selling small strips of land with the promise of future planning permission. They were targeting mainly Asian families and were pulling in a lot of punters.
I told him to stay clear of this type of company and on telling a respected estate agent, he said it was a big problem and no-one seemed to be doing anything about it.
So why has it taken so long to reach the headlines? I suppose NuLabor had other priorities, like clinging to power.
Even now, type “land banking” into Google and there are quite a few sites out there trying to sell you bits of worthless land. But now, there are also lots of warnings from respected financial commentators like the Guardian and agencies like the FSA. Read the latter items and ignore the sales pitches.
Needless to say, but my son was never paid for his work.
I Never Use My Visa Card On-Line
I’ve just been reviewing my credit card use, as it is getting to that time in the month when they get paid.
The interesting thing is that my Visa card is now never used on-line and hasn’t been for some months, as the stupid Verified by Visa system is a complete deterent to on-line use, as I pointed out in an earlier post.
The system may mean that my bank doesn’t see any on-line fraud with credit cards, but I just wonder if some people have cut-up their Visa cards in frustration at the security system.
Would You Employ an Accountant Who Couldn’t Add Up?
One of the stories today is that the Nulabor government cocked up the rate of inflation, which meant that pensioners were underpaid to the collective tune of £80billion.
There is no excuse and mistakes like this by governments of all colours and competences are woven into the rich tapestry of history. Years ago, a colleague left to work for the Department of Trade and calculate the trade statistics. A few years later there was a serious mistake. I don’t think it was his fault, but because he worked there, we spotted it and had a bit of fun at his expense.
Whoever said, that there are lies, “damned lies and statistics” was right. Latest thinking says it was Charles Wentworth Dilke and not Mark Twain or Benjamin Disraeli. Although the phrase should probably be “lies, damned lies and government statistics”
Is Now the Time to Get a Zopa Loan?
One of the advantages of a Zopa is that you get the loan at a fixed-rate for three or five years. With interest rates, likely to rise in the next few months according to many, such as the Telegraph, if you have a good credit rating, could Zopa be the place to get a loan now?
After all, the great advantage is that if you cash a Zopa loan in, you don’t pay any penalties. And you can even change the repayment day, if your salary date should change say.
An Engineering Icon
BBC Breakfast were talking about BT and showed a background of the Forth Rail Bridge. Nothing about telecoms, but it shows how iconic and well-known the bridge is.
The Anonymous Widower 