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Wednesday, April 16, 2008

HBOS Give Brown The Two Fingered Salute

Following on form yesterday's breakfast meeting between Gordon Brown and senior bankers, a follow up to Darling's public pleadings for banks to reduce the costs of borrowings, HBOS will give its response tomorrow.

It is reported that Halifax Bank of Scotland (HBOS) will increase its two-year fixed and tracker mortgages by as much as 0.5% from tomorrow.

It seems that Brown and Darling are being ignored.

As I said yesterday Brown and Darling are "nothing more than hopeless and helpless observers wringing their hands as the British economy and banking system collapses around them."

The Bank of England and the government need to appreciate that, no matter what thier concerns over "moral hazard" are, issues of governance can be dealt with later. Their prime mission must be to prevent the economy from collapsing.

If your neighbour's house is on fire, even if he started it himself, you do not sit idly by watching and waiting for your house to burn down as well; you help him put it out.

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