If you are new to this blog, you are invited to read first “The Largest Heist in History” which was accepted as evidence and published by the British Parliament, House of Commons, Treasury Committee.

"It is typically characterised by strong, compelling, logic. I loosely use the term 'pyramid selling' to describe the activities of the City but you explain in crystal clear terms why this is so." commented Dr Vincent Cable MP to the author.

This blog demonstrates that:

- the financial system was turned into a pyramid scheme in a technical, legal sense (not just proverbial);

- the current crisis was easily predictable (without any benefit of hindsight) by any competent financier, i.e. with rudimentary knowledge of mathematics, hence avoidable.

It is up to readers to draw their own conclusions. Whether this crisis is a result of a conspiracy to defraud taxpayers, or a massive negligence, or it is just a misfortune, or maybe a Swedish count, Axel Oxenstierna, was right when he said to his son in the 17th century: "Do you not know, my son, with how little wisdom the world is governed?".

Sunday, 26 February 2012

City top talent

For all those who missed the table compiled by Patterson Associates and published in the paper edition of The Evening Standard on 22 February 2012, here it is:

Value added to the company per £1 in chief executive pay, 2006 - 2010:
SAB Miller:£21,950
Reckitt Benckiser:£11,958
BAE Systems:-£558
Legal & General:-£3,495
Barclays Bank:-£10,787
Royal Bank of Scotland:-£34,275
Source: Patterson Associates

The table shows the relationship between the notion of "the top City talent" and the skills and abilities to make/lose money for the investors/shareholders. No wonder pension funds, saving rates, endowments' returns are what they are. Any surprise?

For all those who follow "the City top talents" views on the current financial crisis and their depth of understanding, like Mr John Varley analytical view on this crisis (for example published on this blog) the figures in this table should look as expected.

It is likely that curbing City pay would give it a competitive advantage because now top pay in the City appears to attract top talent, but of the wrong sort.