No doubt this grates terribly

The regulator hired to investigate the near-collapse of Co-op Bank will be paid £1,500 a day plus expenses, it has emerged.

Mark Zelmer, a former Bank of Canada boss, will probe what led to the Co-op Bank flirting with failure in 2013 when it uncovered a £1.5bn accounting black hole. The lender limped on before eventually being rescued by US hedge funds last year.

The investigator’s pay package was confirmed by the Bank of England today. If he works a normal five-day working week, he stands to earn almost £33,000 a month. He has been given up to a year to complete the investigation, meaning he could be paid around £400,000.

Just look at that paycheque there! That would beat teaching political economy one day a week, wouldn’t it?

But then there would be a certain problem with Ritchie getting the job. He’s the one who complained loudly about the regulator insisting that people who know nothing about banking shouldn’t, perhaps, be running the Co Op Bank, isn’t he? Even, that having unqualified incompetents in charge was an essential part of the democratic revolution necessary in the economy.

Hmm, yes.

6 comments on “No doubt this grates terribly

  1. £1,500 a day is hardly top-end rates for this type of work. What’s the daily rate for a partner from one of the big 4 accountants these days? (I remember £2,500 a day from 20 years ago.)

    [Yes, I realise this isn’t just accountancy work, and that a partner doesn’t get that amount straight into their back pocket, but even so …]

  2. Mark Zelmer, a former Bank of Canada boss, will probe what led to the Co-op Bank flirting with failure in 2013 when it uncovered a £1.5bn accounting black hole.

    £400,000? Well they will be in trouble if he takes longer than 4,000 years to discover the cause.

  3. @ Chris Miller
    If he’s been given a year to finish the investigation, he is presumably expected to work part-time. It wouldn’t take *me* a year to dig out who/what dug the hole. So maybe it’s a rate for working half-a-day: mornings only or afternoons only?

  4. @Chris Miller – £1,500 a day is peanuts at this end; restructuring and insolvency partners are rated at maybe £5k/day or more, depending on how good they are and/or how good a discount you can negotiate

  5. @ Flatcap Army
    Chris is quoting rates from 20 years ago before he retired – doubling in 20 years is quite plausible.

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