54 Million Ways To Out The Lie In The LIBOR
FACT One: The latest banking “screw your customer” policy is insisting small, medium and large business pay a sizeable percentage above the LIBOR rate for commercial loans. That is, not at the usual Bank of England rate plus a couple of percent.
Fact Two: Braver accountants are telling Business Accountant Managers to get stuffed and switching accounts to the banks which have not yet turned that screw.
Meanwhile, back in fat cat country: When news of the Northern Rock debauch broke Anorak asked two questions:
- Who was responsible and accountable. Answer? Every-one
- Who would be brought to book and who would press criminal charges? Answer? No-one
Rumour turned to meltdown but today comes confirmation of what was always suspected; evidence of a culture which gave its chiefs compensation packages which are so big they defy description.
One would be Aunt Betty’s response of “Oh no! Dear me! That is obscene.” to her husband’s every Saturday night suggestion.
Since Aunt Betty had seven children, resistance, than as now, appeared to be either token or futile…and it actually saved on heating bills. Uncle Eric died young but was always a cheerful chappie.
The Herald today says:
“The chief executives of the UK’s five leading banks, including three in line for government bailouts, earned £54m among them over the past five years.
“The staggering remuneration figures, detailing the cash and benefits enjoyed by bank directors, came as Chancellor Alistair Darling defined the rules for government bank aid ahead of a meeting of Lloyds TSB shareholders in Glasgow today that will decide on the proposed takeover of HBOS.”
This all while Brown’s UK Government was introducing and, still has a punitive tax rate for the most disadvantaged poor and lowest paid in Britain achieved by demolishing the 10p tax rate. There has been no repeal of that decision.
Posted: 19th, November 2008 | In: Money Comments (2) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink
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November 19th, 2008 at 9:57 pm
My apologies; I should have updated the Libor contracts figure.
Bloomberg today estimates it at $360 trillion…
November 19th, 2008 at 9:50 pm
I am always sympathetic to someone putting the boot into bankers, but the reality is that commercial loans are usually priced at Libor plus; that is the whole point of central banks pouring vast amounts of money into the system in order to bring rates down.
‘Libor anchors contracts amounting to some $300 trillion, the equivalent of $45,000 for every human being on the planet.’