Metro Bank’s woes

Firstly I know some really nice people at Metro and they are valued contacts. Its not always seemingly the easiest place to work but anyone who has the borrowers and banking consumers interests at heart (and that is far from everyone I meet in this sector) will obviously wish to see robust challenging to the established order

But the news isnt good. I have been aware of Metro taking a more restrictive line on lending for some time now but the recent share price collapse resulting from the issues with their property lending, still came as a shock

A very decent article on Metro’s difficulties is published here.

As for my view? Well its a narrow one based on one of my bugbears with lenders. Metro are probably more demanding of personal guarantees than more or less any other lender. That comes down from their flamboyant owner who declares that “he had to sign them, so why shouldnt you?” (or words to that effect).

Why shouldnt you indeed?

Because as a broker I may quite easily find another lender who will offer the same terms without the demand for a PG

Thats why

 

A business is ruined. How can brokers hit back?

Recently I was told (with much anger) the tale of a small haulage business that had the heart ripped out of it by a lender who’s position in the market is quite high profile. One of the older and more recognisable brands in the sector

The story is from a source that I consider impeccable and has been verified elsewhere. The business was owned by a ageing couple looking to retire and instead they ended up losing just about everything even when a (very mainstream and highly regarded) lender was prepared to take them on. Their current lender blocked at every step of the way and set about ripping fees out of the client until they could take no more

Perhaps the manager responsible sleeps well at night, but he wouldnt if I had my way

I hasten to add that this was not a client of mine but how and why should I get involved?

Sadly too many in the finance and “professional” services sector have little interest in the fortunes of those that actually run businesses with their own personal assets continually on the line.

The lender involved regularly chases me for business. They do not hold a unique place in the market and there is plentiful competition. And that is precisely what I will be pointing out to them

Knowing the broker market too well, I will not expect other brokers to hit back in any numbers but any broker who has any consideration for their client at all should make absolutely sure they are introduced to lenders who actually look after their long term interests

 

Patisserie Valerie says its accounts were ‘significantly manipulated’

Read here 

“thousands of false entries into the company’s ledgers”.

“the misstatement of its accounts was extensive, involving very significant manipulation of the balance sheet and profit and loss accounts”.

Those “ex auditors” who defended the role of the “auditors” Grant Thornton to me in this saga should perhaps wonder what standards of ethics apply in their “profession” and question what their role actually was.

Perhaps it needs restating (although it shouldnt do) that creditors both secured and unsecured rely on the veracity of the information provided and signed off by these audit firms and also stand to lose huge sums if they have been fraudulently misled

Not only that but Grant Thorntons incompetence undermimes any creditors faith in any published accounts which in turn creates genuine unease about the granting of credit which it turn damages the trading environment

For this the penalties for all concerned in this saga cannot be severe enough

 

A further retreat by the “big four’?

The news today that one of the big four has dramatically scaled back its support and relationship team for invoice finance clients (they will not now routinely engage with any client turning over less than £25m per annum) was surprising given their position in the market which was markedly more enthusisatic than their competitors.

The question is whether its a trend or just a (badly managed) blip?

Im suspecting a trend. Over the last couple of weeks I had been trying to engage a major bank with a very high profile and successful client with a very high net worth and also a strong CV and recognisable media profile. The bank was chosen for a number of reasons but they wouldnt not even engage with a informal meeting unless “six months bank statements were provided” along with a whole list of other pointless documentation.

The comment that they have no right to be so high handed with those that bailed out their failures did spring up

It was an extraordinary unexpected and embarassing snub. If banks do not wish to build relationships with such clients then who do they want to talk to? Anyone? There have been rumours that this particular bank is also pulling away from the market and this bore that out. To some extent.

Fortunately an excellent challenger bank has picked up the baton and progress with be made.

What? No workers?

80% of UK manufacturers and almost the same figure of service enterprises are suffering genuine difficulties in recruiting staff. Its worth reflecting on that statistic and remind ourselves that this a remarkable plus for the economy. There will be a knock on effect in gradual inflation of course and it is clearly an employees market. How many times have we been able to say that for the majority of sectors in recent decades?

Naturally this conflates with Brexit and both the harder line sides of the debate should reflect a little.

First of all the “remainers” were screaming about how imminent departure from the EU, would lead to an immediate exodus of corporations. This “project fear” originated from the very top of course and has turned out to be laughable nonsense.

But the immigartion obsessives of the leave campaign need to quickly understand the effect of labour shortages on the economy. You cannot have a booming economy with a labour crisis

 

 

HMV collapses again

A deep sense of inevitablity about the second collapse in six years of the HMV chain and as much as I have fond memories of the excellent original Oxford Street store, I am surprised that there is much point seen in continuing with the brand

There is still room for Independent shops as there is in most sectoprs of retail. Customer service stoll cannot be replicated on the net and never will be. Rough Trade are a prime example and one of my very best clients supplies to that smartly run brand

The linked article sums up the position well enough but couldnt avoid a ridiculous sniffiness about “real music fans” and “independent shops with white labels”

In the childishly and surprisingly defensive world of fans of highly innovative verse verse chorus “inde music” (im being ironic, if thats passed you by) only their music is somehow real whereas it would appear that Bach, Miles Davis, Shostakovich, The Beatles, Mozart, Coltrane, seemingly are not