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The Vampire Squid's Tentacles Now Embrace the Bank of England

Posted: 26/11/2012 16:32

Matt Taibi of Rolling Stone was right about the Vampire Squid: "the first thing you need to know about Goldman Sachs is that it's everywhere."

Now a scion of Goldman Sachs is to be the governor of the Bank of England.

The Chancellor's announcement today is audacious. He rode roughshod over a careful and open appointments procedure to ensure that Britain will, for the next eight years have a governor of the Bank of England whose experience, history and record is totally aligned with 'the takers' - the bankers and speculators that have asset-stripped the British economy.

Once again, the interests of Britain's industrialists and businessmen - 'the makers' - have been subordinated to the interests of the City by the Treasury.

Mark Carney - the new Bank governor - is steeped in the culture of Goldman Sachs, the world's most notorious bank. He worked for thirteen years in its London, Tokyo, New York and Toronto offices - and held a range of senior positions.

The one of greatest interest was his role as managing director for Goldman Sachs's investment banking division.

While Mr Carney may well argue for a "belt and suspenders approach (to) capital and leverage ratios" for banks - an approach that is retrospectively, and hopelessly trying to shore up banks that are effectively insolvent, we all know that the risks lie elsewhere. In particular, in the close links that exist between banks' retail and investment arms.

The City of London was dead against the appointment of any governor that threatened a break-up of the banks.

And once again, the City of London has won. That does not forbode well for stability in the future.

Hold on to your seats. Another financial failure of the banking system very likely lies ahead.

 

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