Sunday, 15 February 2009

Mr Brown can't wait for the G20 meeting

The meeting of the finance ministers of the G7 in Rome ended with the usual bland communique about the need to coordinate actions, be vigilant about excess volatility in the currency markets and so on.
The next big meeting of global economists and politicians will be the enlarged forum of the G20 summit to be held in early April in London and hosted by the hapless Mr. Brown, the UK prime minister. More than any other world leader he is hoping to pull a rabbit out of the hat to save his own government and try to assuage the widespread perceptions regarding his bungling of the UK banking crisis. Increasingly the UK prime minister lacks any credibility and when pressed on reasons for the parlous state of the domestic banking system he waffles on about the global financial crisis and how no one could have seen it coming etc.
Several facts specific to the UK seem to have escaped Mr. Brown's narrow attention span.
Most obviously, the only major bank in the world to have seen an actual run was the UK based Northern Rock. Then there were the staggering losses announced last Friday by HBOS which underline the fiasco where the CEO who was at the helm during the piling up of those losses was Mr. Brown's appointee to be the number 2 at the UK's financial regulator, the FSA. It has also emerged that another key appointee that Brown wanted to bring into his "team" was attached for several years as a consultant to the principal bank in Liechtenstein which is the world's most secretive tax haven.
In the Alice Though The Looking Glass world we live in it is not surprising that a supposed left leaning social democrat government in the UK has created the most nauseous form of cronyism that has allowed bankers to bring the UK economy to its knees.

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