
But Mr Whistleblower's story, replete with details and background 'colour', conveyed a strong whiff of plausibility. Perhaps one of the several inquiries into Fred Goodwin's wretched monster will get to the bottom of it all.
Did I say 'whiff' ? Stench would be more like it - the stench of decay. 'Global restructuring' used to be an honourable capitalist calling, and was (for example) in large measure responsible for accelerating recovery from the ghastly financial chaos in the Asian & Eastern markets back in 1997-98. Likewise, in its heyday Enron's restructuring prowess was instrumental in digging many a floundering utility and large industrial energy user out of a hole. The creative use of derivatives and various other financial tools and tricks of the trade is a wonderful thing to behold when used to assemble a win-win package that puts a company back on its feet.
Of course there are rewards for the restructurer: a successful restructuring deal is as great a value-added proposition as can be imagined. But - having done a few of these transactions myself - when you have a client who is almost in tears of gratitude for the service you've done them, you know the fees have been properly earned.
The official RBS response has been to claim that's pretty much what they still do. But what Mr Whistleblower has described is a perversion of this noble art. If he's right, then ways should be found to lock 'em all up.
ND
5 comments:
Yikes....the world of 2008/9 was a very nasty place eh?
I've never had anyone in tears of gratitude for what I have done - except for the women I've shagged, of course.
some of the weeping RBS customers have been screwed over too - that wasn't you, was it ?
Not sure about scoop as File On 4 did a good piece about it in Jan. The whole thing is very damaging if true, and as you say it has a terrible air of plausibility about it.
Banksters one and all, what do you expect.
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