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Insights from the UK and beyond
Bankers offer act of contrition
In the Middle Ages the four ousted British bankers who brought the Royal Bank of Scotland and HBOS to the brink of collapse would have probably had to endure the public humiliation of sitting in the stocks.Â
On Tuesday the likes of former RBS chairman Tom McKillop and  former RBS chief executive Fred Goodwin had to undergo a more civilised form of public humiliation – a grilling by Parliament’s Treasury committee.
Given the public outrage over their huges salaries and bonuses for banks that are receiving state aid the bankers’ parliamentary appearance could have not have come at a worse time.
Not surprisingly then McKillop, Goodwin as well as former HBOS chairman Dennis Stevenson and former HBOS chief executive Andy Hornby were quick to say sorry.
from Global Investing:
Careful what you say
Bank executives beware. Turn your microphones off during what are likely to be stormy shareholder meetings this year.
Insults are likely to fly at many bank AGMs this year from shareholders angry 
at their board for losing billions, sending shares crashing, making ill-advised purchases or for their role in the global economic crisis. Bankers are unpopular after more than a year of grim news.
from Global Investing:
And the next Iceland is…
If there's one thing you don't want to be, it's the next Iceland.
Since its currency, colossally indebted banking sector and economy collapsed in spectacular fashion in October, the country has become a byword for an economy that has truly hit the rocks.
Within weeks, banking problems and currency falls meant Hungary was being hyped as a "second Iceland", at least until a joint International Monetary Fund and European Union rescue package restored some stability.
from MacroScope:
A path strewn with difficulties
An old Chinese proverb states that it is better to take many small steps in the right direction than make a giant leap and fall back. Judging by the number of bank lending initiatives announced over the past three months, British policymakers are taking this to heart.
On Monday, Britain announced no fewer than eight measures to kickstart lending in its credit-starved economy. Despite pouring 37 billion pounds of public money into major banks last October and pledging hundreds of billions more in guarantees, the government had to admit it needed to take more credit risk off banks' books.
Global problem or self-inflicted wound?
The government has unveiled a second package of measures aimed at getting the banks 
to start lending again and helping the economy off its knees.
The new package follows last October’s 37 billion pound bank bailout which ministers have reluctantly had to concede was not enough. It may have shored up their capital positions but it did not prompt them to start lending again. The latest plan aims to give them a hefty nudge in that direction by offering them insurance against losses and guaranteeing their debt.
Easing the pain for small businesses
The government has unveiled a plan to guarantee up to 20 billion pounds of loans to help small businesses survive the credit crunch.
But there are concerns that will not be enough to get the banks lending sufficient funds to help businesses get access to cash.
Women in the boardroom
Women should be considered for new board positions in banks bailed out by the government, to counter the male dominance of senior directorships at the biggest companies, the Cranfield School of Management has recommended. “The evidence is that women are not more risk-averse, but they are more risk-aware,” it says.
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Has the media made the crisis worse?
Since banks and world financial markets started collapsing over a month ago, politicians, commentators and people in the street have pointed the finger of blame in a variety of directions: at bankers, regulators, hedge fund managers, mortgage lenders, short-sellers and speculators, among others.
Now, it appears, the BBC is also in the firing line.
The broadcaster’s economics correspondent, Robert Peston, has broken several major elements of the unfolding story, from which banks were on the brink of collapse to the details of how the government was going to set about bailing them out. BBC radio interviewer John Humphrys has also been at the forefront of the story, grilling government leaders, especially Chancellor Alistair Darling, about the crisis and how the country, and the rest of the world, ended up in it.
Industry awards, the kiss of death
So, how to tell in advance which banks and financial institutions were headed towards the door marked ‘exit’?
City analysts like to pore over spreadsheets, corporate accounts and chief executive comments for nuances and clues as to performance.
Will the bank package work?
They were widely accused of dithering earlier this week but Gordon Brown and Chancellor Alistair Darling have now finally caught up with events and have tried for the first time to overtake them by unveiling a 50-billion pound rescue package for the banks.
The aim is to bolster their balance sheets, increase confidence in them and get them lending again so ordinary financial life can start anew.
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The Wall
