Peter Hoskin

April 2007: when Gordon ignored the warnings

Typically great stuff from the Standard’s Paul Waugh, who has delved into how G7 finance ministers – including one Chancellor Brown – were warned about the dangers of US subprime loans back in April 2007.  The guys sounding the alarm, in a briefing to Brown et al, were the hedge-funders Jim Chanos and Paul Singer, and they were left distinctly unimpressed by the response they received.  Here’s a key passage from Paul’s post:

“‘We were completely and officially ignored,’ said Chanos.

When asked if anyone present had subsequently had apologised for failing to heed the warnings, Mr Chanos replied:

‘Two people, but they shall go nameless – and unfortunately, nobody still in power today.’

That means G Brown was definitely not one of those who apologised for not listening.

Chanos added that he had even named individual banks that were at risk.

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