Northern Rock - Vincent Cable talks sense

Vincent Cable was the only MP who talked sense and exposed the dishonesty of the Directors of Northern Rock yesterday -

" ........this statement reeks of complacency. Frankly, the Government have become complicit in large-scale irresponsible lending by the same management—and it continues even today—in what amounts to little short of a banking scam. "

"Will the Chancellor tell us how much taxpayers’ money is exposed to this bank? I believe that there is £11 billion in lending and £23 billion in guarantees, so we are talking about a sum of money in one bank that is roughly equivalent to annual spending on the armed forces.

When the Chancellor agreed to the effective nationalisation of the liabilities of this bank, why was the management—including the chief executive, who has been paid £10 million in five years for taking his bank on to the rocks, and the directors, including the ubiquitous Wanless—not sacked? I would include the FSA, which has admitted that in 18 months it did nothing to check the bank. "

Needless to say he got no answers - other than it was the shareholders job to get rid of Directors .... it is a fair bet that they will disappear as soon as the bottom feeders of the City get their hands on it.

There was much lamenting and wailing from NE MP's not a few of whom have no doubt enjoyed the hospitality of the Directors at Newcastle United and Rugby Club, or seen the NR Foundation's donations to their pet constituency projects.

...... and not a mention of the role of the hapless Down's Syndrome North East's role in this sordid affair.

UPDATE Friday am

Reuters - Branson's Virgin eyes bid for Northern Rock
FT - Virgin poised to join Northern Rock bidding