Shareholders & bondholder have a right to expect 'due care' when any organisation selects board members or a CEO. Especially if they are subsequently (bondholders) expected to suffer a 'hair-cut' in order to bail out the bank for any ensuing problems.

Banks should be run by proper proven bankers with an acknowledged track record and they should not adopt some woolly thinking egalitarian idea of including 'all comers' including those who have no experience or knowledge about banking

This is especially relevant to the approach used in this instance by the Co-operative bank and in any event a simple background check would have revealed that Paul Flowers had been:

Paul Flowers resigned from Bradford Council after pornographic material was found on his laptop

Flowers quit charity over '£150,000 false claims'

Interestingly this only initially came to light because someone felt they should blow the whistle on Mr Flowers, who then trotted out all the predicable excuses (we have heard them all before) which simply don't wash

And as for Mr Milliband - just take it on the chin and stop trying to muddy the waters by blaming the conservative party for other totally unrelated funding issues. The conservatives will have to answer for their funding sources in due course, but for now just deal with the matter in hand.

The message is pull together on this one and stop trying to score gratuitous points

The questions are therefore:

  • When can we expect to see a 'class action' by the Co-operative bond holders?
  • Should those involved in selecting Mr Flowers be liable for all their assets (house, pension, investments etc.) to help cover the banks losses? If so, when can we expect to see his house on the market and a cheque to the Co-operative for the balance of his assets?

Both of these approaches would send a very clear message for the future - hit those responsible where it hurts, in the pocket; because that is the only thing people nowadays understand Whereas, yet another costly parliamentary investigation (whitewash) with no teeth or satisfactory outcome is hardly the way forward.

The rhetoric from Mr Cameron may sound good but in reality it is a complete waste of time and money funded by the taxpayer

Tags: , | Categories: Banking