Brown's charade is working
Fraser Nelson 7:25pm
At 8pm on Friday, Sky will broadcast an interview with Gordon Brown which seals off what will be his best day for months. The risible idea that he somehow played matchmaker between HBOS and Lloyds TSB proved irresistible to news editors last night. It fuses together the political crisis with the financial one and has been written into the script. Him bumping into the part-time chairman of board of Lloyds (not Eric Daniels, who actually runs the company) has been puffed up into the moment when (as one newspaper put it) Brown ordered banks to merge. It’s the perfect myth, which allows him to say “I’m your man for the economic meltdown.” That’s not to say there were not plenty of political sweeteners in this deal, as James blogged earlier. The banks needed the competition commission to turn a blind eye, and that required political dialogue. But there is all the difference in the world between approving a deal, and brokering it. Yet Brown’s chance meeting with Sir Victor Blank can be puffed into the moment whenThe merger was, as the Lex column says today, a political deal in that the government needed to promise that the Competition Commission would turn a blind eye. But Brown is trying to hype this up into his doing.
As he says tonight’s interview: “The first thing to do is to get the stable economy that we need and that’s the action that we’ve taken in the last day or two.” What action might that be? Simply agreeing somebody else’s action. But Brown knows how to insert himself into a news story.
BROWN: “Obviously in a deal which involves the legislative process, the Government has to be involved, and yes I and Alistair Darling did talk to parties that were involved because it was the right thing to do.Honest answer: No, of course I didn’t fix the deal. Politicians don’t, cant and shouldn’t play matchmaker over corporate mergers of this size. We just have the necessary approval.Q: You fixed the deal?
GB – This was a deal that took place between two companies, it involves no government money.
Q – With a little help from the Government
GB – We had to deal with the issues of competition and we had to deal with some of the other issues that flow from that like the maintenance of the mortgage market.
Just as Darling gave a Commons statement after the Bank of England’s special liquidity scheme, to make out like it was somehow his doing, Brown and Darling are on the media today to big up their role.Darling had this to say on Sky News: “I was very, very sure “- that’s a first – “that in relation to HBOS we needed to take decisive action and we needed to take it quickly.” And I have to say, it seems to be working. If I were Lloyds, I’d let him – it’s a good thing to have the PM dependent on you for his political survival.
After a successful Budget, Brown’s spin team have been known to go off the boozer and end up face-down in a curry. They deserve to do so today. The myth that Brown played a major role in brokering the HBOS-Lloyds deal has now entered the food chain in Westminster and it will buy him significant amounts of time.
Previous
JimBob
September 18th, 2008 7:34pm Report this commentIt doesn't change the fact that he's useless though does it?
Pete, Scotland
September 18th, 2008 7:45pm Report this commentThe irony is that the more time it buys him, the more complete will be Labours destruction at the polls.
All the general public will think about when they walk into the polling booth is that things are getting worser and worser under Labour, and it is time for a change cause things can't get much worse.
This was pretty much the sentiment at Glasgow East and Browns charade ain't going to cut much with anybody struggling to pay higher fuel and food bills.
Especially when they realise how much of the proportion of their bills are down to Government TAX!
mac
September 18th, 2008 7:52pm Report this commentOver-egged myth-spinning (and post-Campbell Labour is embarrassingly bad in that department) will be seized on gleefully by the media to highlight any unwarranted Brownian trumpet blowing. This may all backfire . . .
Guido Fawkes
September 18th, 2008 7:53pm Report this commentThere is a fascinating difference in the reporting from financial journalists and political journalists.
TrevorsDen
September 18th, 2008 8:08pm Report this commentNot sure you are right.
This deal would not have gone through without the help of legislation. Thats all the above clip is saying.
The other charge that could be made (and you would hardly expect Brown to admit to this one) is that Lloyds held a gun to the govts head to let it go through.
The result of this deal and other shake outs in the banking sector is JOB LOSSES. In so far that Brown has taken any credit he will get ALL the blame for job losses. And he will get ALL the blame for any job losses in Lloyds as opposed to HBOS.
And he will get ALL the blame for job losses in England as opposed to Scotland.
Brown is not announcing free money for all - he is presiding over a melt down of the financial sector after being in charge of it for 10 years.
This is a good day? Are the trade unions asleep?
Henry
September 18th, 2008 8:10pm Report this commentLloyds and HBOS have been talking for weeks.
The only credit the Government can claim from this fiasco is in agreeing that the consumer and HBOS employees will now be well and truly shafted from now on.
David C
September 18th, 2008 8:18pm Report this commentThe myth will 'buy him significant amounts of time'.
But only within the Labour Party.
The so-called Black Wednesday, ejection from the ERM, was the most significant event of the Major administration.
It set the stage for the benign economic environment for which Brown has claimed the credit.
The Conservative Party obtained not one jot of benefit for this.
Likewise, Brown's stock with the British people is worthless. He may puff up his part in this play, but he has no wider audience, and the Westminster critics might yet turn their backs on such a patent poltroon.
Liz Brownl
September 18th, 2008 8:50pm Report this commentI don't think so - the idea that Jonah and Darling were behind the deal was debunked on one of the news channels last night. I for one do not credit Gordo with the deal and apart from the meeja don't think that anyone else will either.....and if it IS Jonah's deal, it will fall apart sooner than you can shake a duster......
Pete, Scotland
September 18th, 2008 8:54pm Report this commentFraser, at the end game of the last Tory Government there was loads of wonderful politically incorrect satire.
Where is it now? Has it been banished? Is it a victim of this horrible politically correct Government? Am I now on a Government watch list for merely asking this question?
I think that one of the anchors of society is good, healthy, rude, politically incorrect and offensive satire.
When we lose this, and we are in the process of doing so, we are no longer a free society.
Max Kaye
September 18th, 2008 8:58pm Report this comment" ...it will buy him significant amounts of time".
I'd say until Monday afternoon, at most.
Mak
September 18th, 2008 9:04pm Report this commentUtter rubbish. The man is an utter fraud from fat head to club foot. You assume that anyone with a brain has had it temporarily removed. Give us more credit please.
Silent Hunter
September 18th, 2008 9:25pm Report this commentIt's just another "Brownie" !
We know that this mendacious PM has no bloody power to influence the outcome of even a WI Jam tasting contest.
He's T O A S T !
The only thing we want to hear from him is the date of the General Election..........the sooner, the better!
salieri
September 18th, 2008 9:34pm Report this commentNo it won't. He might as well take credit for stopping the rain. Utterly shameless and nauseating.
DM
September 18th, 2008 9:36pm Report this commentLet's hope it's not the kiss of death - given his record so far.
DM again
September 18th, 2008 9:43pm Report this commentI have got so sick of this man, I can barely read about him. I am so angry at what he has done.
This country is in economic crisis and is heading towards the stoppers which we will hit with the most almighty bang. Thank you, Gordon, not.
TGF UKIP
September 18th, 2008 10:19pm Report this commentIf this "deal" "has now entered the Westminster food chain" it simply demonstrates that the politicos are just as big a gang of idiots as the hacks particularly looking at the City's judgement evidenced in today's movement of the respective share prices.
Currently "the deal" bears all the hallmarks of Jonah Brown.
Interesting to see the 10 o'clock news on BBC1 and Sky both lionizing Gordon. Do you know, Fraser, if the BBC have allocated Brown his own permanent camera crew?
John Page
September 18th, 2008 10:23pm Report this commentHe even looks like Eric Daniels. Is he a good mimic?
Dirty Euro
September 18th, 2008 10:42pm Report this commentWhy do you keep putting him down? He did fix the deal there is no doubt. Why do you have to be so biased?
If it had been a tory you would say he did fix the deal. This is tory bias.
Please give the leader the credit he deserves. What does he have to do to get credit?
:
Dirty Euro
September 18th, 2008 10:58pm Report this commentIt seems the tory media will destroy any chance of the PM getting any credit for this. What ever happened to a fair press. The tories are 28 points ahead but still it is labour they go after, even when they do the right thing Why?
marbury
September 18th, 2008 10:59pm Report this commentJimBob
Yeah I think it kind of does, actually.
Leave aside an objective assessment of his ability for one moment. When the world's financial system is crashing down around our ears, who do you think people will gravitate towards? Dave and George? I don't think so. They suddenly look very green, and not in a good way. For better or for worse (quite possible for worse) this is Gordon's moment. Whether he seizes it is another matter.
John Moss
September 18th, 2008 11:20pm Report this commentNu-Lab have spent over £200 billion more than they have taken in taxes - and the sale of gold and 3G licences since 1997.
They have increased the national debt by 50% and they're still going!
How can this man have any claim to economic competence?
Fred Monroe
September 18th, 2008 11:37pm Report this commentThe media will not give any credit to the labour party for saving this bank. What do they have to do to get a positive press?
Anthony a
September 19th, 2008 12:27am Report this commentWill this transaction get past the European Commission competition authorities? Not heard anyone mention this as yet...
EUSSR GO HOME
September 19th, 2008 1:17am Report this comment@ FM 11:37 p.m
Q: "What do they have to do to get a positive press?"
A: You jest!
Revoke the lisbon thing: NOW
Give us a referendum: NOW
Give us an election: NOW
And then: DISAPPEAR
mitch
September 19th, 2008 5:37am Report this commentSo like taking the credit for a boom then the trying to avoid blame for the bust he claims credit for saving HBOS but will he take the blame for 40,000 job losses?
Nell O'Day
September 19th, 2008 8:03am Report this commentToday I mentioned Gordo's name (in full) to a PhD student at a university in America.
She said, "Who's he?" - and she meant it. I guess the corruption of the media has its positive side...
Chuck Unsworth
September 19th, 2008 10:01am Report this commentSo Dirty Euro, he 'fixed the deal' did he? Is this your confirmation that he acted illegally?
Chuck Unsworth
September 19th, 2008 10:07am Report this commentFraser, you say Brown's charade is working. Well, if even you can see that it is a charade, why do you believe that others can not?
Brown saying that it's all the fault of those bastards in the city is a manifestation of his complete delusion. Who set up the tri-partite shambles? Who's been in charge for a decade? Who failed to see the gathering storm? Who professes to be 'prudent' having flogged off most of the gold? And who says that we are 'well placed' to weather the hurricane?
Ian C
September 19th, 2008 10:24am Report this commentNow the US is getting its act together I would not be surpised if the Lloyds/HBOS deal is "adjusted" somewhat!
Lloyds/HBOS will have to be broken up within 5 years.
Fraser Nelson
September 19th, 2008 3:30pm Report this commentGuys, it's a success in that the media has bought it and, ergo, those gathering in Manchester next week. As Guido says there is a fault line between political and financial journalism, and Brown is an expert in getting the best out of that fault line. Even I have repeated that he's made the Bank of England independent when he's done no such thing.
As as for the general public, my guess is people are too busy worrying about their heating bills or job security to care much about who brokered the HBOS deal - so he'll be doomed in the end. But Monday? No. I suspect he has another set of No10 Christmas cards in him.
John Moss, 50% is net debt increase in nominal terms. One must adjust for inflation (noty doing so is a Brown trick) and it's up a still-outrageous 25% to £581bn in 2008-09.
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