Posted by: tristar3research | March 25, 2009

MEP Blisters British PM for Illegitimacy and Crime

Daniel Hannan MEP: The devalued Prime Minister of a devalued Government speaks at an EU Forum in plain speak- “You have run out of our money!” Look at how the Financial Times assesses good ‘ol Fred’s added value: OVERREACH in the ABN acquisition!

Fred the Shred was a horse (or dog) that just couldnt hunt

"Fred the Shred" was a horse (or dog) that just couldn't hunt

Stephen Hester is pretty clear about the impact of ABN on the group’s Global Banking and Markets Division, which took in most of the parts of ABN that Sir Fred had coveted. Describing the huge losses suffered on that side of the business, Mr Hester says on page 12 of the RBS announcement: “Over 50% of these losses pertained to ABN AMRO-originated portfolios.” Ouch! Let’s look at those losses. According to the statement these were: £5.8bn from trading asset writedowns, counterparty failures and reserving (Blam!); £6.9bn from previously identified credit market exposures (Thwak!); and £7.7bn from goodwill writedowns related to the ABN deal (Pow!).

And Ryan Chilcote of Bloomberg UK says that the overpaid RBS executive who refused any paycut despite a L 20B bailout of the bank he ran into the ground was “popularly known as ‘Fred the Shred’ in the UK” – yeah, he was a ruthless job killer while he got paid a massive salary.

And today’s failed UK gilt auction is not very different from the failed U.S debt auction today.

Investors gave an unexpectedly cool response to a $24 billion auction of 5-year Treasury notes Wednesday, just a day after a $40 billion auction of 2-year notes suggested strong demand. Treasury prices also declined following the auction. The government is running up record deficits in order to fund an array of plans (none, taxpayer approved!) to provide stimulus to the economy (short time prop) and support to the ailing financial system (bail out Goldman and other insiders). Any suggestion that demand for U.S. government debt is weakening would be negative for stocks (Bloomberg).

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