The Great Debate UK
A Kansas doctor reviled by anti-abortion groups for his work providing “late-term” abortions was shot and killed in his Wichita, Kansas church.
Reports in the media about job losses are commonplace these days, with young people’s struggle to find work dominating coverage. Yet at the other end of the age spectrum, the lives and future prospects of older workers have been set in turmoil by the recession.
Well-intentioned legislation often has the opposite effect. The European Commission’s new alternative investment directive threatens investment trust companies, an attractive form of pooled investment.
The Commission aims to “enhance investor protection.” However, in addition to hedge funds, the original French and German target, investment trusts would be caught in the new regulatory net. Unlike other pooled funds, investment trusts offer transparency, low fees, the discipline of a public limited company and a vote.
“Justification” of new-build nuclear power is a high-level assessment of whether the benefits of building new nuclear plants outweigh the detriments. Once the justification decision has been taken it will be difficult if not impossible to re-open this major issue.
Sir Victor’s Blank cheque has finally bounced. Drawn on the Bank of Gordon, it looked like a dodgy piece of paper from the start, and now it has been sent back, marked “Refer to Drawer”.
Shares in Lloyds Banking Group rose in relief that someone, anyone, has finally agreed to take the rap for the disastrous takeover of HBoS, at the behest of the UK government, during last year’s financial panic.
Dazzled by the prospect of a market position in the UK which the competition authorities would never have allowed in normal times, Blank and his chief executive Eric Daniels failed to look their gift horse in the mouth, and discovered it was really a broken-down old nag.
The acquisition obscured the fact that the Black Horse itself was hardly in shape, and even without the handicap of HBoS, would almost certainly have been obliged to limp to the government for help. That is as much Daniels’ fault as Blank’s, and he will have to pay once a new chairman has been found.
This will not be easy. It would surely be too venal, even for this government, to impose finance minister Alistair Darling on the suffering shareholders, once he finds himself out of a job next year.
Lord Sandy Leitch, the Labour luvvie elevated to deputy chairman at the weekend, might fancy his chances, but his background is in insurance. The fashion for bank chairman who know nothing about banking has, mercifully, been blown away by the crisis.
More sensibly, Lord Mervyn Davies seems to have little to do since he quit Standard Chartered Bank <STAN.L> for the administration, while Doug Flint from HSBC would be a fine, and popular choice as chief executive if he could face the challenge. He’s a Scot, which would also play well in the Brown bunker.
However, John Kingman, the civil servant in charge of UK Financial Investments, the government’s fig leaf covering its 43 percent stake in the bank, had signally failed to endorse Blank’s re-election at the forthcoming annual meeting. Perhaps he is showing signs of independence after all.
Philip Hampton, who was ousted as finance director from Lloyds five years ago for urging a cut in the dividend, would have been the ideal candidate. Unfortunately, he was tapped to chair RBS last January.
- David Kuo is director at The Motley Fool. The opinions expressed are his own. -
The Bank of England Monetary Policy Committee decided to leave interest rates unchanged at 0.5 percent in May. This came as no great surprise given that the Central Bank has already slashed interest rates to a level where further cuts would have made no discernible difference to the cost of money.