Entirely quite so

Taxpayer losses linked to the collapse of Greensill Capital could have been avoided with proper due diligence, the spending watchdog has concluded.

A 56-page report into how the finance firm advised by David Cameron was given access to the Government’s Covid support schemes found that the state-backed bank that approved Greensill as an accredited lender could have been “more sceptical” when dealing with the firm.

And if we hadn’t lent them the money they couldn’t have lost it.

We’re back at Hayek. It’s not possible to know everything about an economy. Therefore all decisions are taken with incomplete information.

Fair enough, Greensill was obviously dodgy etc – parts of the business were entirely fine but not all of it – but the statement “more diligence would have avoided loan losses” is always true of every bank, every loan and every loss.

3 thoughts on “Entirely quite so”

  1. What could possibly go wrong with a state-backed British Business Bank doling out loans to politically-connected entities?

  2. The Meissen Bison

    Didn’t David Cameron hone his financial skills by insisting on chanelling ever more taxpayer money into Kids Company against the express advice of officials?

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