Banking

Back in August 1991, Michael Lewis examined the disintegration of his ex-employer — investment bank Salomon Brothers — for The Spectator. His semi-autobiographical story, Liar’s Poker, went onto to become an international best seller. Here is the article in full for CoffeeHousers: The Judgement of Salomon, Michael Lewis, The Spectator, 24 August 1991 We never be told the truth about what happened at Salomon Brothers over the past few years. I’m not even sure that it matters. The firm has admitted to breaking the rules in five separate US Treasury auctions, to fraudulently using the names of its customers, and to submitting an illegal bid for $1 billion worth of

To mark today’s news that Rowan Williams will be stepping down as Archbishop of Canterbury, here’s a piece he wrote for The Spectator during the financial crash of 2008: Rowan Williams, Face it: Marx was partly right about capitalism, 24 September 2008 Readers of Anthony Trollope will remember how thoughtless and greedy young men in the Victorian professions can be lured into ruin by accepting ‘accommodation bills’ from their shifty acquaintances. They make themselves liable for the debts of others; and only too late do they discover that they are trapped in a web of financial mechanics that forces them to pay hugely inflated sums for obligations or services they

This morning, the chief executive of RBS Stephen Hester appeared on Radio 4’s Today programme to discuss the recent furore over his bonus. Hester revealed he nearly resigned over the crisis and agreed that bankers have been making too much. Here’s the full transcript for CoffeeHousers. James Naughtie: Banker without a bonus? You might say he’s a lonely figure in his business; he’s Stephen Hester, Chief Executive of the Royal Bank of Scotland. The public furore about executive pay in a bank that’s 83% owned by the taxpayer caused him to forego the bonus he was awarded this year in the form of more than three and a half million

Faisal Islam has a very interesting report from Davos on how at least one bank no longer believes that a euro from Ireland, say, is worth the same as one from Holland or Germany. He writes that: ‘A leading European bank has begun to account for euros differentially, by nation state. That is to say, they are differentiating a risk to euros that originate in a potentially defaulting country from that of a euro-cert. They, in effect, have invented the concept of a German, Greek and Irish euro. Now we accept that government debts from these nations are different. The idea that a bank treats cash differentially, is an incredible

After months of delay, and much hounding by The Spectator’s Select Committee Chairman of the Year, Andrew Tyrie, the Financial Services Authority has finally released its report into the wheezing collapse of RBS in 2008. At 452 pages it is a behemoth of a document, and too much for me to have fully digested yet. But a few points stand out at first glance: 1) Don’t blame us, blame Gordon. The Tories are making much of the fact that only three politicians are mentioned in the report: Tony Blair, Gordon Brown and, most relevantly, Ed Balls. And they’re not mentioned in a particularly flattering context, either. All three are quoted

Tieless, Alistair Darling appeared on Marr this morning to discuss his memoir. As with so many of these New Labour autobiographies, there was the strong whiff of a therapy session. At one point, Darling said “if Gordon is listening to this” before remarking that he still felt a huge amount of “residual loyalty” to him. It is not news that the Brown government was dysfunctional. But it was striking that Darling did not dissent when Marr suggested that under Brown, Labour had – collectively – not been fit to govern. In the serialisation of the book in The Sunday Times, the detail that stands out to me is that Darling and David Miliband met

George Osborne wrote a strident article for the Observer last weekend, in which he called rich tax evaders “leeches”. As James Forsyth reveals in the cover story of this week’s magazine, Osborne is not alone among Tories in hounding the ‘undeserving rich’ at present. James goes on to argue that the Tories are ‘becoming particularly worried’ about the callous rich because the Vickers commission is poised to bring the emotive issue of banks back to the ‘political frontline’. The Vickers report has already irritated the coalition’s sore points, with disagreement allegedly rife between George Osborne and Vince Cable. Today’s FT offers a fresh angle. Osborne and Cable are in fact remarkably close

Ever since the Elizabethan poor laws — if not before — society has tended to divide the poor into the deserving and the undeserving. But, as I write in this week’s magazine, our politicians are now taking aim at a new category, the undeserving rich. Who you consider to be the undeserving rich depends on your ideological leanings. Russian oligarchs or the families of Middle Eastern despots are, perhaps, the most obvious examples. They have acquired huge wealth but often by illegitimate means. Then come those who evade, to use a favourite phrase of both David Cameron and Ed Miliband, “their responsibilities”. This includes those who dodge their taxes or

A sweeping and utterly typical performance from Vince Cable in his interview with the Times (£) today. Not only does he plunge his teeth into the exposed flesh of the bankers (criticising them for their “special pleading” over banking reforms), but he also offers another overarching diagnosis of the British economy (there won’t be a repeat of 2008’s financial crisis, he says, in case you were wondering, but slow growth could be a problem). I feel like a spoilsport for pointing out that, only four months ago, the Business Secretary was actually warning that “you can see” another financial crash happening. But aside from Cable’s fiery rhetoric, it’s worth noting