Rowan Williams Goes to Wall Street to Tell the Money Men to Repent
TIMES ONLINE: The whole world, and not just Britain, is broken, with continents such as Africa feeling forgotten and uncared for, the Archbishop of Canterbury said in the heart of New York’s financial district yesterday.

Any money men who might have happened in to Trinity Wall Street to shelter from the snow would have found a different sort of chill as Dr Rowan Williams delivered his lesson.

Standing at the lectern of the famously wealthy US Episcopal church, which lies at the head of Wall Street, the leader of the Anglican Communion condemned the “straw man” of self-interest.

His theme was that financiers, wordsmiths — in fact anyone in the Western world connected in any way with economic reality — should look at themselves in the mirror and repent.

Economic life had become independent of intelligent thought and “wildly irrational”, the Archbishop said. He condemned the “uncritical” way in which bankers and traders pursued wealth regardless of the consequences, selling expensive mortgages to the poor and repackaging them into complex products that few understood.

The “invention of more and more recondite metaphysical, unreal forms of wealth generation” existed, he said, simply to “produce noughts on the end of the balance sheet”.

Dr Williams, conscious that he was speaking close to a general election, echoed the social thought of the Roman Catholic Church when he added that society was founded on love, and there would be no sustainable model until this was recognised. >>> Ruth Gledhill and Alexandra Frean | Friday, January 29, 2010

Hitler Was Enabled by Western Bankers and the JFK Assassination Story is a National Fairytale, Says Oliver Stone
MAIL ONLINE: Adolf Hitler was a product of his era and Americans are in denial about who really shot JFK, according to Oliver Stone.

The Hollywood filmmaker, who is working on a 10-part documentary called The Secret History Of The United States, said the German dictator was ‘enabled by Western bankers’.

Giving a lecture to high school students on the role of film in peace-building, Stone told how ‘psychopath’ Hitler rose to power thanks to big business leaders and other supporters who appreciated his vow to destroy communism.

Stone, who is in Bangkok for a visit organised by the Vienna-based International Peace Foundation, also told the 300 pupils his movie JFK was his most controversial to date as explores other theories into who killed U.S. president John F Kennedy.

Hitler was and managed to ‘seduce’ Germany's military industrial complex.

He said: ‘Hitler is a monster. There is no question. I have no empathy for Hitler at all.

‘He was a crazy psychopath. But like Frankenstein was a monster, there was a Doctor Frankenstein. He is product of his era.’

Stone said the aim of his documentary, which two historians are helping him with, was to offer a fuller understanding of the 20th century and how some of those lessons may be relevant to President Barack Obama.

‘What has America become? How can we in America not learn from Germany in the 1930s?’ the Oscar-winning director asked. >>> Mail Foreign Service | Monday, January 25, 2010

Archbishop of Canterbury Dr Rowan Williams: Bankers Have Failed to Repent
TIMES ONLINE: The Archbishop of Canterbury has waded into the debate on bankers' bonuses, warning that financiers feel no "repentance" for the excesses of the boom that led to financial meltdown.

Dr Rowan Williams, the head of the Church of England, said the Government should have acted to cap bonuses and he warned that the gap between rich and poor would lead to an increasingly "dysfunctional" society.

Dr Williams told BBC2's Newsnight programme: "There hasn't been a feeling of closure about what happened last year.

"There hasn't been what I would, as a Christian, call repentance. We haven't heard people saying 'well actually, no, we got it wrong and the whole fundamental principle on which we worked was unreal, empty'."

Asked if the City was returning to business as usual he said: "I worry. I feel that's precisely what I call the 'lack of closure' coming home to roost. It's a failure to name what was wrong. To name that, what I called last year 'idolatry', that projecting of reality and substance onto things that don't have them."

His remarks referred to an article he wrote in The Spectator a year ago in which he warned that society was at risk of turning to idolatry in its worship of wealth. >>> Robert Lindsay | Wednesday, September 16, 2009

Benedict Brogan: Should We Bang Up Some Bankers?
THE TELEGRAPH: Gillian Tett, the FT whizz whose book Fool’s Gold is the best explanation so far of the financial crisis, has a fascinating piece today which considers why we have not seen some of the bankers responsible for the mess put behind bars. She points out that in the wake of the Savings & Loan scandal in the US, 1,852 S&L officials were prosecuted and 1,072 of them served time. A further 2,558 bankers were also sent to prison.

So far there is no sign of a campaign of retributive justice on the same scale to deal with those who led the system to collapse. Is that a good thing? Locking up the casino boys may satisfy public hunger for revenge, but it does nothing to repair global finance.

Gillian Tett argues: “But if there is no retribution against financiers, it will be difficult to force a real change in behaviour. After all, no amount of twiddling with Basel rules or pious statements about bonuses will ever scare a financier as much as the thought of jail. Moreover, without some retribution it will also be hard to persuade voters that finance is really being reformed, or has any credibility or moral authority. That is bad for politicians and regulators. However, it is also bad for bankers too.” She reckons we should keep an eye out for signs of legal cases against bankers. And presumably prison sentences too? [Source: The Telegraph] Comment here | Benedict Brogan | Friday, September 04, 2009

Banks Defend Bonus Culture as Profits Jump
THE GUARDIAN: Barclays and HSBC made a passionate defence of the City's bonus culture yamid [sic] a growing public backlash about the return to a big pay bonanza barely a year after the government bailed out the financial system.

As criticism of bonuses crossed the traditional political divide, the banks compared their high-flyers to footballers and Hollywood stars to try to explain the need for the hundreds of thousands of pounds individuals are expected to receive this year. Neither bank gave figures about potential bonuses for investment banking staff, but a jump in profits in both operations led to speculation that huge pay deals will be awarded.

Profits at Barclays Capital, the investment banking arm of the high street bank, doubled to £1bn while at HSBC's investment bank the profits rose 125% to $6.3bn. Each bank reported overall profits of nearly £3bn despite a combined £13bn of bad debts caused by rising unemployment, making it more difficult for households and companies to pay back loans. Bank shares jumped sharply, pushing the FTSE 100 to its highest level this year.

John Varley, chief executive of Barclays, turned to footballers to explain bankers' pay while Stuart Gulliver, who runs the investment bank at HSBC, used Hollywood stars. Varley said: "The football analogy certainly goes some way I think [to explain bonuses] ... There is simply no higher priority that to ensure we field the very best people. That in a sense is exactly the same as a football manager if they are going to win. Our obligation is to ensure we pay appropriately."

Gulliver likened the situation to a Hollywood studio that not only paid stars for pulling in profits, but also many of the extras. "If a foreign exchange trader makes a deal then they know two days later how much they made. If it's a £5m profit, that is something we can count, we can see it, its real. And they are part of a successful team," he said. >>> Jill Treanor and Phillip Inman | Monday, August 03, 2009

Sharia Boards: Scholars Hold Sway over the Success of Products
FINANCIAL TIMES: The ultimate arbiters of the Islamic finance industry are not regulators, bespoke-suited bankers or the authorities, but a small, select coterie of ascetically garbed scholars versed in Koranic verses and arcane areas of jurisprudence.

This was made abundantly clear last year, when Sheikh Taqi Usmani, a leading scholar of sharia-compliant finance, shocked the industry by declaring many Islamic bonds, or sukuk, had gone too far in mimicking conventional debt.

Bankers and lawyers debate whether it was Sheikh Taqi or the credit crunch that caused the sukuk market to clam up: most admit the denouncement did not help.

The sharia supervisory boards – that Islamic banks must have – approve or ban transactions, products and services but do not become involved in credit policy or portfolio choices.

This can bring them into conflict with bankers who have conjured up increasingly complicated products.

“I’ve seen banks where the relationships were close, and others where they were tense, but everyone knows you cannot do anything without the scholars’ blessing,” says an industry insider.

Bankers say – until the credit crunch – the scarcity of sharia scholars was the biggest drag on growth of the Islamic finance industry.

Islamic banks have multiplied in recent years, thanks to government support, a profusion of petrodollars and a favourably inclined customer base in much of the Muslim world.

However, the number of scholars qualified to pass judgment on banks has remained low at about 30-40.

In addition to exhaustive knowledge of sharia and Islamic jurisprudence, scholars have to be financially knowledgeable and comfortable with English – the language of most financial and legal documentation. >>> By Robin Wigglesworth | Tuesday, May 5, 2009

G20 Summit: Leaders Target Bankers
THE TELEGRAPH: World leaders will agree unprecedented global restrictions on pay and bonuses for bankers at the G20 summit in London.

G20 rioters storm RBS – Telegraph TV exclusive
In future, bankers will be prevented from receiving multi-million pound cash bonuses for speculating on the stock market.

Their remuneration will instead be based on the risks they take over the long term. Bankers deemed to be making risky investment decisions will only be paid in shares that can be cashed in after several years.

The multi-million-pound bonuses paid to bankers have been blamed for encouraging them to take the "reckless" decisions that triggered the global financial crisis.

The Daily Telegraph has learnt that the remuneration deal was thrashed out over the past few days following intensive diplomatic efforts by Nicolas Sarkozy, the French President, and Angela Merkel, the German Chancellor. The measure did not appear in a draft communiqué that was leaked at the weekend.

The European leaders were understood to have pushed for an exact monetary limit on banking pay but were prepared to sign up to the new, strongly-worded agreement.

Regulators in each of the G20 countries will impose the new restrictions, which cover both private banks and those owned both wholly and partially by the state.

The agreement will be the most eye-catching part of the communiqué, which is expected to be released by G20 leaders at the summit in London's Docklands on Thursday.

On Wednesday, violent clashes took place in the capital between police and anti-capitalism protesters ahead of the talks. In the City of London, a branch of Royal Bank of Scotland was attacked and looted as violence flared during a 6,000-strong protest, which resulted in 32 arrests.

A man died after he collapsed at the scene of protests near the Bank of England last night.

A protester called the police after they saw the man collapse and stop breathing in St Michael’s Alley, near Birchin Lane just off Cornhill shortly before 7.30pm.

Two police medics broke through the cordon and carried the man to a clear area in front of the Royal Exchange where they gave him CPR.
The ambulance arrived six minutes later and took him to hospital just before 8pm, where he was pronounced dead.

A Scotland Yard spokesman said: “The officers took the decision to move him as during this time a number of missiles - believed to be bottles - were being thrown at them.”

It is believed that the man died of a heart attack. >>> By Andrew Porter, Robert Winnett and Christopher Hope | Thursday, April 2, 2009

Gordon Brown Launches Damning Attack on Bankers
THE TELEGRAPH: Gordon Brown, the Prime Minister, has launched a damning attack on the behaviour of bankers in a speech to Wall Street financiers in New York.

The Premier accused bankers of operating “outside” everyday human values and principles in the run-up to the global economic crisis. He said that “avarice” had developed over the past few decades and now needed to be tackled.

Mr Brown is on a global economic mission ahead of next week’s G20 summit in London. Speaking in New York, he said that new international standards governing banking – and banking bonuses – would now have to be agreed by world leaders.

At a breakfast for business leaders, Mr Brown said that values such as “honesty, integrity and working hard” may have been absent from the financial system in recent years.

“The principles and values we apply in our everyday lives, you have got to ask did we apply them to the running of our financial institutions?,” he said.

“There is a sense that the global economy was outside these standards that we applied in our everyday lives… a world without standards is going to be a world without stability”.

The Prime Minister warned the Wall Street financiers that the major challenge they now face was to ensure honesty in financial dealings. He described it as an “epoch-making era”.

“Markets depend on morality in the end,” he said. “We are building for the first time not just a global economy but a global society.”

Among those attending the breakfast at the five-star Plaza hotel were the president of Citibank, directors of Morgan Stanley, the president of Nasdaq and the president of Goldman Sachs. >>> By Robert Winnett, Deputy Political Editor in New York | Wednesday, March 25, 2009

No Bonuses for Bankers Says David Cameron
David Cameron, the Conservative leader, has said that there should be no bonuses this year for senior staff at banks in which the Government holds a stake.


THE SUNDAY TELEGRAPH: He was speaking after The Sunday Telegraph disclosed that Lloyds Banking Group has drawn up plans to pay about £120 million in bonuses to staff even as it teeters on the brink of majority state ownership.

Sources close to Lloyds said the bank had drafted the bonus proposals and was "in consultation" about them with UK Financial Investments (UKFI), the Treasury body that owns a 43 per cent stake in the bank.

The revelations follow the disclosure last week that Royal Bank of Scotland, almost 70 per cent of which is owned by the taxpayer, was looking to pay staff as much as £1 billion in bonuses this year.

Mr Cameron said bonuses in future years should be paid in shares in the banks which can be cashed in only when it has entirely repaid the support it has received from the taxpayer.

He said he had no objection to bonuses of £1,000-£2,000 to low-ranking employees who have met targets and do not share the blame for the current financial crisis.

But the Tory leader told BBC1's The Politics Show: "For these banks that are owned by the taxpayer, or where the taxpayer has a large stake, it is completely wrong to be paying bonuses."

Mr Cameron said he raised the issue with Gordon Brown at the time of the banking bail-out in October, but the Prime Minister had been "asleep on the job". >>> By Duncan Gardham and Mark Kleinman | Sunday, February 15, 2009

THE SUNDAY TELEGRAPH: Gordon Brown Must Go, Says HBOS Whistleblower Paul Moore

Paul Moore, the bank whistleblower whose revelations forced the resignation of a senior Government adviser, has called for Prime Minister Gordon Brown to go for his part in creating the financial crisis.

Mr Moore, who was sacked after raising concerns over excessive risk-taking at HBOS, said Mr Brown should be "held accountable for his failure to oversee the stability of the country".

Following his explosive evidence to the Commons Treasury Committee last week, Mr Moore said he is planning to send the MPs a further dossier of 30 documents which will point the finger of blame for the bust at Mr Brown.

After Mr Moore's revelations forced the resignation of the deputy chairman of the Financial Services Authority Sir James Crosby, Mr Brown told another parliamentary committee that HBOS's massive losses - estimated at more than £10 billion - were caused not by Government policy but by the bank's flawed business model.

But Mr Moore, who was head of risk at HBOS from 2002 to 2005, today told the Independent on Sunday: "The failure goes right to the heart of the system - to the internal supervisory system and right to the top of government.

"Brown must go. He cannot remain in office. >>> | Sunday, February 15, 2009

THE SUNDAY TIMES: Ministers Take Tougher Line on Bank Bonuses

Ministers and the Opposition hardened their line against bank bonuses today amid suggestions that Lloyds intended to go ahead with payouts worth £120m this year.

Tony McNulty, Employment Minister, said that any bank employee who had responsibility for the disastrous business model adopted by the banks should "not get a penny". Junior staff should be able to get between £1,000 and £2,000, he said, but anyone with a significant involvement in the business model should be paid nothing extra at all. >>> Philip Webster, Political Editor, and Jenny Booth | Sunday, February 15, 2009

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A Sorry Parade of Bankers Can't Put Things Right
The Government wrecked both our private and our public finances and if Gordon Brown doesn't get a better grip of the banking industry, the IMF will have to do it for him, says Michael Fallon.

‘We are profoundly and, I think I can say, unreservedly, sorry at the turn of events” was how the former chairman of HBOS put it. “I think I can say, unreservedly”? “The turn of events”? Only somebody as deeply immersed in the British establishment as Lord Stevenson of Coddenham could get away with destroying a great British bank, taking £17 billion of taxpayers’ money, and then offering up the kind of shaded apology more appropriate for somebody caught out by a sudden cold snap.

This won’t do, and the parade of hapless bankers in front of the Treasury Committee last week did not give us the answers we need to the crisis in British banking. Instead, we were shown a sorry picture of a sales-driven, deals-driven, bonus-driven culture wholly alien from the banks our fathers knew. >>> By Michael Fallon | Saturday, February 14, 2009

THE (SUNDAY) TELEGRAPH: Lloyds Plan to Pay £120 Million in Bonuses to Staff Threatens New 'Fat Cat' Row

Lloyds banking group has drawn up plans to pay about £120 million in bonuses to staff even as it teeters on the brink of majority state ownership, The Sunday Telegraph has learned.

Sources close to Lloyds said the bank had drafted the bonus proposals and was "in consultation" about them with UK Financial Investments (UKFI), the Treasury body that owns a 43 per cent stake in the bank.

The proposed payouts would be distributed among thousands of workers in Lloyds' retail and commercial banking businesses, who received about £150 million in bonus payments last year.

They are likely to inflame the growing row over City bonuses which was stoked last week by The Sunday Telegraph's disclosure that Royal Bank of Scotland, almost 70 per cent of which is owned by the taxpayer, was looking to pay staff as much as £1 billion in bonuses this year.

The disclosure comes as the Government and Lloyds attempt to find a way to pump billions more of taxpayers' money into the troubled bank without the Government being forced to take a majority stake. >>> By Mark Kleinman, Patrick Hennessy and Edmund Conway in Rome | Saturday, February 14, 2009

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