Saturday, 7 March 2009
Jonah Brown strikes down Lloyds Bank
LLoyd's banking Group has today announced that it has finally agreed a deal with the government for it to access the Asset insurance programme.
This deal was supposed to be agreed last week and the share price had ticked up in expectation of this to 75p. When no deal was forthcoming the share price nearly halved. As the week dragged on, the share dropped and dropped with only a small rally Friday.
Reports in the City suggest that Eric Daniel's was speaking at a charity event last Monday and was reduced to tears in a speech (clearly due to stress, not the text he was reading). So much pressure has he felt.
For this Lloyd's deal was cooked up last year by Victor Blank, the Chairman and Gordon Brown. In the end it has not achieved its aim of keeping HBOS off the Government balance sheet. Nor has it been good for LLoyd's whose shares have collapsed to RBS type levels.
As a result, the only honourable solution is for both Blank and Brown to resign. Eric Daniels', one of the few good bankers, should be allowed to try and turn the new nationalised LLoyd's around. If he wants too. I don't think the bookies are going to give long odds on either the Chairman or CEO of Lloyd's being in place in 2010.