Wednesday, September 08, 2010

Barclays bank

Barclays survived the banking crisis without taking taxpayer funds - unlike rivals RBS, Lloyds and HBOS - but it was forced to go cap in hand to Middle Eastern investors who pumped billions of pounds into the bank to keep it afloat.  Critics claim that reckless lending and risky investments meant it would have collapsed if governments around the world had not stepped in. The crisis plunged Britain into the deepest recession since the Second World War.

Seems their new chief executive Bob Diamond is likely to make about £70 million by the time he is 65.

IMO: Today that is only a reasonable amount if he stays the course, if banks are to be run as they usually are in this country. I imagine if the fabled Gordon Gecko had the job, he would have wanted a lot more money in the long term but might not have said so in the short term. This guy seems to look like a clapped out life insurance salesman, but certainly seems to have an excellent track record to date.

Mr. Cable made reasonable statements given the circumstances " what this appointment illustrates is the wider policy question about how banks can be made safe, and we are worried about this combination of the casinos and the traditional banks.... I think it does illustrate the wisdom of the Government's decision to set up this banking commission to look at the structure of banks."

Mr. Diamond will of course have been aware of this sort of thing, and must have taken the job nonetheless.

IMO: Maybe the present innate hostility of many people towards the banking world will decrease in time, and maybe it will not.

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