HBOS THREE CAUSE POLITICAL OUTRAGE FOR CABLE.

Why do our political masters repeatedly react to specific situations by making high-profile noises about shock and outrage ?

 

Today it's being reported that the left-wing Secretary of State in the Department of Business, Innovation and Skills (there's an Orwellian bit of newspeak for you !) has been outraged, all of a sudden it would appear, by the findings of a report which was published last Friday. The report focused on the collapse of the banking company 'HBOS' and found that three of the company's senior management were principally to blame; these were its Chairman and the 2 men who occupied the Chief Executive's chair between 2001 and 2008.

 

Although it must have been obvious to everyone who was involved in these matters, and also to anyone who had later knowledge of them, that there were serious failures in the bank's management, it's only now that Vince Cable has decided to become 'outraged'. Not only is he 'outraged' but he wants to find ways of sanctioning the three men and, no doubt, will even look at introducing retrospective legislation if that is the only way that his socialist 'outrage' can be assuaged.

 

The 'HBOS Three' were undoubtedly guilty of managing their bank poorly and are probably rightly blamed for its ultimate failure just as Fred Goodwin was blamed for the collapse of RBS. However, for the Government to engage itself in a witch hunt for individuals is entirely wrong-headed. Government sets the agenda and the environment, it is for others to decide what sanctions should be applied to specific individuals.

 

Andy Hornby, Sir James Crosby and Lord Stevenson have now been branded and, unless it is shown that they broke laws or other specific codes of conduct, it is for others, and not the Government or judiciary, to determine whether and how they might be sanctioned. Fred Goodwin left RBS under circumstances which ensure that he will never find similar employment again, having been hounded out by the prress; he is now facing the prospect of being sued for his failings. Eric Daniels, the American who almost destroyed Lloyds through his failure to impose proper 'due diligence' on his bank's merger with HBOS,  has yet to be seriously pursued by anyone; one wonders why.

 

Cable is an ambitious man who has his eyes on Nick Clegg's job. Positioning himself as the champion of the poor against these evil bankers won't do his case any harm, even if nothing comes of it.