Ping Crosby!

It's definity no laughing matter. Gordon Brown is doing the rounds dishing the dirt on whistleblower Paul Moore's allegations about HBOS. Brown said it was had been investigated by the FSA and found to be without substance. Somehow I don't think that will be the case in further investigations. Interestingly, the FSA today blurted out that they had advised HBOS of the risk element.

Gordon Brown's new spin line is that it was not about risk but that the "whole business model was wrong". He's not really that convincing. This will run a bit longer. I do not think Mr. Moore would say what he said if he had not some substance behind him.

Crosby, Spills and Banks

After appearing on the naughty step yesterday, the four rogue bankers have come in for a press drubbing of the highest magnitude. Scumbag millionaires, they are called by The Sun. They won't be coming out for a while I'm sure.

During the Treasury Select Committee hearing, it emerged that Sir James Crosby, former chief executive of HBOS and lately a public penpusher at the FSA, had sacked his head of risk management for daring to suggest that the bank was growing too fast, that it was culturally indisposed to being challenged and that its sales culture was “significantly out of balance with their systems and controls”. The new banking giant that is Lloyds Banking Group says HBOS denies it. Mandy Rice Davies comes to mind.

Crosby gone today, resigned in disgrace. He was too hot for Gordon Brown to handle. This will only get worse if those in charge don't come clean and fess up to their wrongdoings. Gordon Brown says the Tories are the do nothing party. Well, he is the never ask questions Prime Minister. A very lame duck indeed.

Wiping the smiles from their faces!

Four former bank executives are at this moment being grilled by the Treasury Select Committe. All have said sorry. As I left it, Lord Stevenson was sounding cheerful about future bonus structures. I got the impression they know it went wrong, that they felt it could go wrong, but, like a Las Vegas gambler, they wanted to have one more roll of the dice. Now they can't.

Andy Hornby sounded contrite. I'm not sure about the others. We may all have got wound up in the greedy credit spree and wanted bigger and better houses, bigger cars, and so on. But most of us didn't or couldn't bundle up loans to resell them like some frightful pyramid scheme.

A chap on BBC News suggested that, if this was the USA, these guys could be facing criminal charges for fraud. The trouble with fraud is proving it. Incompetence and a clouded brain are good defences in a court of law. That's why today is such a bind for them. Say they knew about everything and the book could be thrown at them. Come across as if they knew diddley-squat and they will for ever be seen as fools and Clarkson-type idiots!

HBOS confirms Lloyds merger talks

The BBC was right, they are in "advanced talks" to see if they can merge the two businesses. Both the Treasury and Financial Services Authority (FSA) say a deal will ease concerns about the health of the UK banking sector. Maybe. But it would be nice to see a few rogues hung out to dry!

I'm beginning to think that come the US Presidential Election, where the Bush propensity for nationalisation will be an issue, and the forthcoming UK General Election, where the Brown propensity for dithering and dodgy financial administration will be an issue, the voters should TAKE CONTROL!!!

What was that about "We the people"?

HBOS and Lloyds TSB in merger talks!

It is not an unexpected thing. HBOS shares went down yesterday like a lead balloon. Lloyds TSB has entered the fray to seek the possibility of linking up to become the UK's largest retail bank. Good news for depositors if it comes off. Good news for the economy, I suppose. But it is even better news, if that is the right sentiment, for those that many suspect have been the cause of HBOS' sudden share plunge.

I hope the FSA takes a good look at some of the razor-sharp minds behind this. We need to be guarded against those whose greed is of such anti-social proportions that they know no bounds!