5 2 mins 14 yrs

MORE, PLEASE.

I refer to the star chamber that took place in Parliament today, when four hapless bankers – practitioners of casino capitalism no less – were arraigned for by our champion Tribunes.

Casino capitalism – the trendy nonsensical phrase of the regulation junky who believes wise angels walk among us, ready to shield us from non-existent free markets. Let us have more revelations please of the type we heard today when it was revealed that HBOS, collapsing, disastrous HBOS, sacked its former head of risk management, Paul Moore. Mr Moore, we learn, warned the bank that “it was going too fast” and was a serious risk to financial and consumer stability – casino capitalism!

Mr Moore told the HBOS board that they ought to slow down and that the bank’s culture was seriously out of tilt with its systems and controls.

Paul Moore’s warnings were ignored by the then HBOS Chief Executive Sir James Crosby, who followed up by sacking him in 2004. Paul Moore sued and the claim was settled.

In 2004 Sir James Crosby was appointed Deputy Chairman of the Financial Services Authority by Gordon Brown.

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5 thoughts on “‘Casino Capitalism’ In Action

  1. Pete

    Your whole philosophy is that state regulation is useless at best or postiively bad at worst.

    But here we have a classic case of free-market failure. The board of directors failed to restrain the casino-capitalist chief executive and fired the whistle-blower instead. It wasn’t the evil government regulators who drove HBOS onto the rocks, it was its useless board of directors.

  2. It wasn’t the evil government regulators who drove HBOS onto the rocks, it was its useless board of directors.

    Useless? How about just plain criminal. Greed alone cant account for the scale of this debacle IMO.

  3. The board of directors failed to restrain the casino-capitalist chief executive and fired the whistle-blower instead.

    And then Gordon Brown appointed the Chief Exec to the FSA. With oversight like that, where did they go wrong?

  4. And then Gordon Brown appointed the Chief Exec to the FSA.

    So what? And it was the chairman, not the chief exec.

    Your "four legs good, two legs bad" approach does get tedious. This was not a failure of regulation or the fault of the evil state, but your blinkers prevent you from seeing the bleeding obvious.

  5. Sorry old son, you’ll just have to get used to hearing the truth from one place at least. Whether you thank me one day is up to you.

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