Tuesday, 18 May 2010

Cameron Banned from the City

Ok. Not the Cameron, but Johnny Cameron. This man was the boss of RBS's investment banking arm and he was a key 'casino-player' with Fred Goodwin. From today, he's been banned from having any major managerial role in the City. This is a life-time ban arranged by the Financial Services Authority (FSA). Should all such bankers be scalped?

Firstly, let's get some things clear. The government apparently owns 83% of the Royal Bank of Scotland, which amounts to 46 billion pounds worth of bail-outs. In 2008, the year the markets crashed, RBS made a loss of around 24.2 billion. This, some have remarked, is due mainly to its global markets division; something that Mr Cameron had a great deal of sway over. Good old Johnny was responsible for securities trading, which included the US mortage market. And if we are to believe Gordon Brown's continual assertions that the recession started in the US, then we have good reason to hold a finger up at Mr Cameron.

The nationalisation of RBS was necessary. If the government hadn't intervened then the bank would have collapsed and it would have affected all our NatWest accounts too (as NatWest is an arm of RBS). The national debt itself is a hard number to estimate, but with George Osbourne yesterday admitting to Labour's sheer ludcrious irresponsibility, that there 'was no money left', then we can assume our national financial situation is a little bit buggered. Some figures suggest the national debt is 890 billion pounds. Surely, someone like Johnny Cameron is responsible for adding the 46 billion to this?

But, let's face it, the numbers are ridiculous. No-one really knows what the debt levels really are. But, the fact is, is that Mr Cameron isn't just a graduate owing 15,000 pounds plus. He's responsible for causing one of our major banks to nearly collapse. So should he be scalped? Well, the FSA have implemented this life long ban, but only in a full-time capacity. He could take up a part-time role as consultant or an advisor in finanical services. Let's also not forget what Mr Cameron was also paid: a whopping £902,000 in his last year at RBS. He also recieved around 3.2 million pounds worth of bonuses in his last two years for effectively buggering up the global arm of RBS. No wonder he's smiling. So, although, he has been banned from "full-time" work in the City, the FSA have not admitted that he has done any wrongdoings in the past and so he could take up some kind of part-time role. And, let's be honest, that part-time role could involve a potential salary of what £500,000 a year? Who knows?

Ultimately, Mr Cameron has got away with it. RBS has been bailed out massively. And some people think I'm wrong to suggest that tuition fees should be scrapped; that tax-payers couldn't possibly pay for the education of society, when in the end tax-payers will be paying more than they can imagine to pay off this national debt. Then again, perhaps Mr Cameron's education needs reviewing. After all, who taught him? Probably Caesar's Casino Academy. I heard Fred Goodwin was the Harry Potter of his year.

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