Study reveals true extent of 'old boys network' between Government and banks
report warns the close relations between business and politics "lead to a conflict of interest at best and a suspension of critical faculties at worst".
The study of 116 of the world's most successful companies will be presented to a Global Forum on Public Governance, run by the Organisation for Economic Co-operation and Development (OECD), in Paris this week.
The research looked at so-called "revolving door connections", when a company employs former or current politicians, civil servants or members of regulatory bodies, or where individuals move from the financial sector into politics, Government or regulatory bodies.
Barclays was the most connected British-based company with 14 revolving door connections.
Two of the Barclays examples were Mark Clarke and Sarah Cox. Clarke is director general of finance at the Department for Business, Enterprise and Regulatory Reform, but worked at Barclays from 2000 to 2003. Cox was an international consultant at Barclays from 2001 to 2004 and has since joined the UK Cabinet Office's business support group.
"The Government and the political classes have very close links to the banking industry," said the report's author David Miller, a Professor of Sociology at Strathclyde University, who specialises in researching lobbying.
"I believe this could be one of the factors behind the disaster that has befallen the financial markets. There has not been enough regulation of these connections.
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The organisations with more than five revolving door connections were Royal Bank of Scotland, HBOS/Lloyds Group, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Dexia Group, HSBC Holdings, JP Morgan Chase and Co, Standard Chartered Bank and UBS.
Six individuals with RBS connections included Quentin Davies, Labour MP and a minister at the Ministry of Defence, who was an RBS adviser until 2003, and Sir Philip Hampton, RBS's chairman, former chief executive of the Government-owned UK Financial Investments.
Perhaps the best known person with HBOS connections named in the report is Sir James Crosby, who was chief executive of the bank from 2001 to 2006 before leaving to become deputy chairman of the Financial Services Authority (FSA), the UK body responsible for regulating the financial sector.
Crosby resigned from the FSA after claims by the whistleblower Paul Moore, the former head of risk at HBOS, that he mismanaged the bank.
Three revolving door connections were identified at Standard Life, including Gerry Grimstone, the chairman of the board who was appointed as one of the UK's Business Ambassadors in January.
Paul Flynn, Labour MP and member of Westminster's Public Administration Select Committee, said:
"Coziness is the enemy of efficiency and coziness leads to a lazy brainedness and a lack of thinking and inventiveness."
A Barclays spokesman said: "Barclays recruits people on the basis of their skills and experience, whether as full-time staff, as non-executive directors or as part-time advisers.
"Where they may have held senior roles in the public sector, their recruitment is undertaken in line with governmental and civil service governance policies."
A spokeswoman for Scottish Financial Enterprise, the body that represents the Scottish financial services industry, said: "From our point of view, the greater the understanding between business and the public sector the better."
A Standard Life spokesman said: "It's important that any board has a wide variety of backgrounds and experience, which is what we have at Standard Life."
RBS and HBOS declined to commentFor Scotlands Future,
Vote for the SNP 03/05/2009 01:36:13
Where does this leave last weeks report from MP's blaming the banks for all our woes.
Just look at the column on the right "More Scotland's Banking Crisis" and look at some of the headlines:
FSA warned banks 6-years ago
MP's grill Turner and King over reckless banks
Secret dossier on HBOS take over
MP's call for Sir Fred's kighthood
Brown vows to crack down on CityObserver,,
Glasgow 03/05/2009 02:33:072Right,
On Location 03/05/2009 02:56:22
Does he have Deep Seated Loyalties to all lawyers who are all members of the Law Society ?
He has said before; Scotland owes a great debt of gratitude to lawyers, so does this mean he is blind to any complaints against them ?
Perhaps the time is ripe for a new Justice Minister who is not a Lawyer.
Surely in this day and age Kenny being a Lawyer creates a Conflict Of Interest ?Observer,,
Glasgow 03/05/2009 04:22:20
There's an article on law, domestic abuse courts, move over there and tell us what you are talking about.Scottish and Proud,
Glasgow 03/05/2009 06:13:22
Labour = corruption ,cronyism ,theft ,electoral fraud!
The best bit is when caught they blame everyone else!Marian,
03/05/2009 07:27:16
The present economic catastrophe happened on Brown's watch, no matter how much he now opportunistically beats up on bankers. He turned on the fountain of cheap money and encouraged the country to swim in it. House prices rose, debt went through the roof and the illusion won elections.
Throughout, Brown boasted of the beauty of his regulatory structure, when those he put in in charge of it were failing to ask the most basic questions of financial institutions. The same bankers Brown now claims to be angry with, he once wooed, traveling to the City to give speeches praising their "financial innovation".
Instead of leading some sort of vendetta against bankers in order to conceal his own failings, Gordon Brown should resign immediately so a UK general election can be held to elect a new government to sort out the mess he created and get the UK out of the depression he created.Toast,
03/05/2009 09:12:50Joe Macdelta.,
03/05/2009 09:37:11Liberal for life,
Dunblane 03/05/2009 10:57:03Evan Owen,
Uppergumtree 03/05/2009 11:19:17Marian,
03/05/2009 11:29:24
I assume you mean Gordon Brown rather than Alex Salmond as the latter has had absolutely no responsibility whatsoever for the economic mess the UK is in unlike Brown who cosied up to the City of London and in a moment of madness gifted them his light touch regulatory system that has exacerbated the UK economic crisis immeasurably.noswod,
Honestas 03/05/2009 14:29:58TWC,
03/05/2009 15:29:19
That is why he has to goHarpo,
here 03/05/2009 15:44:26CharIes LinskaiII,
Edinburgh 03/05/2009 15:52:06
He is 'Fishing' for ways to turn a 'Refrigerator' into a 'banana-hammock'!
Shame-on-you, 'Mister' a Salmon!!Liberal for life,
Dunblane 03/05/2009 16:15:40
The Bank of Scotland,RBS, Dunfermline BS are all SCOTTISH institutions with Scottish HQ.
Yes, for sure Gordy Broon is not without his responsibilities as are the very citizens who take out 150% mortgages etc.
Wee Aik makes much of his SCOTTISH banking advisers, many whose hands have been greased very well before the STORM.
So if the cap fits wear it - wee Aik has one made to measure for sure.Am Fògarrach,
03/05/2009 17:31:58
#13 noswod -
The fact remains, as clearly pointed out by Marian at #12, that Alex Salmond "has had absolutely no responsibility whatsoever for the economic mess the UK is in unlike Brown who cosied up to the City of London and in a moment of madness gifted them his light touch regulatory system that has exacerbated the UK economic crisis immeasurably."
Apparently you can't get that through your liberal skull.Liberal for life,
Dunblane 03/05/2009 19:50:07Independent Mind,
Buckie, Glasgow, Oxford 03/05/2009 20:50:31
Maybe you should go read some liberal economics books (I suggest Hayek as a good starting point) then come back when you actually know what you are taking about.
Alex Salmond has absolutely no control over monetary policy, however, our good friend Gordon Brown has effectively had complete control over both fiscal and monetary policy for the last 11 years.
It is Gordon Brown that has kept mortgage rates at an unsustainable low by flooding the market with cheap money from the Bank of England leading to the inevitable property bubble (as is repeated throughout history).
It was Gordon Brown that created the FSA so that the fat cat bankers which paid his and Tony Blair's way into Government could have free reign to do as they please. The FSA is a complete laughing stock. As a liberal I assume you support less regulation, the problem is Gordon Brown took that to mean no regulation and on top of that intervene and distort markets by giving favours to big companies.
So, please tell, how exactly has Alex Salmond caused this mess??Independent Mind,
Buckie, Glasgow, Oxford 03/05/2009 20:55:19
Also, could you please stop calling RBS, HBOS etc "SCOTTISH" institutions. These companies are huge multinationals. To call them Scottish because their headquarters are in Scotland is both misleading and wrong.
If a company gains it nationality by which country its headquarters are in then there are a LOT of Swiss and Irish companies trading in the world markets.
Sunday, 3 May 2009
Published Date: 03 May 2009
LINKS between Government and the banking sector have been condemned in a new report that has uncovered the extent of the "old boys network" at the top of British public life.
Britain has a greater culture of cronyism than Europe or the US, according to the study, which identified key individuals who have moved jobs between politics, financial institutions and the bodies charged with regulating the banking industry.
comment
2
Where does that leave Maggie Brown's claims that he has always wanted tougher regulation of the Financial sector.
3
2 Gordon Brown is just an out and out liar. In true Stalinist style he wants to air-brush history. Fortunately this is not the Soviet Union and he will be unsuccessful.
4
What about Kenny MacAskill not investigating lawyers within SCCRC ?
5
And the relevance of your comment to this particular article is ?
6
quelle suprise!! There is cronyim between corrupt Westminster and the banking collapse!!!
7
Gordon Brown has attacked bankers as a smokescreen to try and conceal his own personal responsibility for introducing a dysfunctional system of tripartite bank regulation that has led the UK into the dire economic mess we are in now.
8
Politicians and banker have so much in common,they both have very high opinions of themselves and in their arrogance cannot see their own incompetence and the contempt with which the public views them.
9
Cronyism! Now there is a surprise, associated with the Labour party, now I find that hard to believe, dont you.
10
Wee Aik never misses a chance to cosy up to his old banking pals - gamblers the lot of them and now see where its led us - a bankrupt and manifestly corrupted financial sector.
11
We needed a 'study' to discover the obvious? Bankers and lawyers have taken up residence in every nook and cranny of the establishment, and look what they have done to it!
12
Ref No 10 "Liberal for Life"
13
The report forgot aboot Wee Ecky the At Andrews trained elite economist of the Royal Bank of Scotland RIP. How many political ecomonists will it take to destroy a country ?
14
One Prime Minister was all that was necessary to ruin the country, just remove the controls and let the weans do what they like.
15
13, the SNP and MR salmond did not destroy the banks and the UK economy, try not the hatered of the SNP cloud your Judgment.
17
I have 'Proof-Positive' that Alex 'Alex Salmond' Salmon is a Salmon.
18
#12 + 16
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#18 Liberal for life -
20
Your thick skull won't allow you to recognise Mr teflon man Salmond for what he is - "It wissnae me" is oft his response to anything that could possibly be deemed a responsibility of government with which he has no wish to be associated with - his days are numbered and you know it.
21
Liberal for life
22
Liberal for life
Posts
Proof that the London Labour Government are as much to blame for the banking crisis as the bankers....as if we needed any.