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Co-op shambles

6c6696de-40b0-11e3-_469339cHere is a very interesting piece by Robert Peston on the shambles behind the virtual collapse of the Co op bank


Simply put the bank was effectively run by a “political appointee” with absolutely no banking experience. Bafflingly this was approved by the FSA

It could be retorted that Fred Godwin had banking experience (although as a recent book explains, he was really an accountant with little grasp of risk) but that wouldnt really be the point. Bob Diamond was certainly vilified and yet his overall record was very strong.

Peston adds this as a footnote

I am told Flowers used his platform as Co-op chairman to increase his influence with senior members of the Labour Party. He was on a finance and advisory group set up by the Labour leader, Ed Miliband.

Quite what he was able to advise is difficult to fathom and this hardly reflects well on labour

Running a bank is a huge task and yes, the renumeration is eye watering but that is the market as it stands and frankly the risks of inappropriate appointments made simply to placate certain viewpoints are enormous

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