Dr Sentamu described his concern about the market, where “the share value of a bank was no longer dependent on the strength of its performance, but rather on the willingness of the Government to bail it out”.
Speaking at the Worshipful Company of International Bankers’ annual dinner in London, he said: “To a bystander like me, those who made £190 million deliberately underselling the shares of HBOS, in spite of a very strong capital base, and drove it into the arms of Lloyds TSB, are clearly bank robbers and asset strippers. We find ourselves in a market system which seems to have taken its rules of trade from Alice in Wonderland.
The, umm, £190 million was made by those who bought shares in the company.
“Our country has built its financial strength historically on the manufacturing of goods, where money was the medium of exchange. In the last week we have seen its systems come close to ruin because now money is no longer being the medium of exchange for goods, but rather is the very item that is being traded.”
Bollocks. Pre WWI we saw exactly the same international specialisation that we see now. The UK in finance, Germany in manufacturing.