Friday, 18 September 2009

Comedy Headline of the Day (only it's not at all funny)

"Lloyds TSB fails FSA Stress Test"
If ever there was a case of the blind leading the semi-defunct, this is it.
We have one failed (as predicted by me) quango passing technical judgement on a failed bank (I've been a bear of bank shares since ooooo 2000/2002). I mean, really, you couldn't make it up could you.
(NB The first FSA stupidity with 'stress tests' was to force Standard Life to sell £17Bn of equities at exactly the wrong time, and on which crass cluelessness the admirable Scott Bell resigned)
FSA = Wankers
Lloyds TSB = Crooks.
PS No posts for a long time 'cos I've been sick. L.


Mark Wadsworth said...

I'm sure there's more to it than meets the eye.

Either the govt wants to show that Lloyds Banking Group (it's not Lloyds TSB anymore, is it?) is not ready to be reprivatised (thus giving them an excuse to keep it nationalised and a conduit to use taxpayers' money to prop up house prices); or the FSA want to show the Tories how tough they can be ("please don't disband us! We still have work to do!") or Lloyds are angling for more bailouts ("systemic risk if we go down, yadda yadda).

Or several other possibilities entirely, but either way this is all complete bullshit if you take it at face value. If the FSA had any clue, banks would have been failing stress tests since about ... ooooo 2002 or so.

BrianSJ said...

Glad you're back.