Finding it hard to get your head round the ins and outs of this global financial crisis? Well, if you live in the UK the root cause became pretty dam clear today.
One of Gordon Brown’s key City advisers was today accused of sacking a whistleblower who warned that risky bank practices would ‘lead to disaster’ years before the financial meltdown.
The above, from Thisismoney.co.uk, hits at the very root of the problem and should make you think twice before you ever again assume that anyone is actually in charge.
Here are the key facts as I understand them,
- Paul Moore was not just some bank cashier who suggested to his boss that the bank was taking risks. No this was a senior consultant who was actually the head of a risk assessment division within HBOS. It was his job to point out where the bank was mismanaging risk. He did so and got fired by Sir James Crosby, who was at the time an HBOS executive involved in retail strategy, that is too say involved in finding the most profitable way to sell mortgages and other investments full of toxic shit.
- Wait, there’s more! Sir James Crosby leaves HBOS and becomes, wait for it, deputy chairman of the FSA, the body responsible for regulating the financial industry.
- AND he just happens to be one of Gordon Brown’s most trusted private sector advisers.
So to sum up, NOBODY WAS FUCKING INTERESTED IN HEARING ANY BAD NEWS!
Bank CEOs and executives didn’t take personal responsibility for flagging up irresponsible practice and neither did the FSA, government advisers or the Prime Minister.
Of course, this isn’t a uniquely British problem but we all need to stop being so fucking polite about the whole thing. The sooner we start talking like Senator Gary Ackerman the sooner we might move forward, not that I have any faith in practical financial reform anytime soon.