Back to HOMEPAGE The dismal demise of the Bank of Scotland:
a 300 year history destroyed by greed
and incompetence
James Irvine
Editor: www.land-care.org.uk
Filed 15 Dec 08
©www.land-care.org.uk
On Friday 12th December 2008 at a meeting of some 300 shareholders held in Birmingham, the death sentence was passed on the independence of the Bank of Scotland. This after a 300 year history of outstanding achievement. Yet another major Scottish icon has fallen. But for why?
There can be little doubt that such a disaster was unnecessary, even in the face of such global chaos in the banking system. Scotland's shame is made the worse by the fact that the symbol of the strength of Scotland's banking achievement remains in glorious splendour in the form of the Bank of Scotland HQ on The Mound in Edinburgh: the historic Royal Mile above it and looking down on Princes Street, the National Galleries of Scotland, Princes Street Gardens and the Sir Walter Scott Monument below.
The situation is not helped by the appalling debacle surrounding its larger local competitor, the Royal Bank of Scotland (RBS). It has managed to keep its identity, although the taxpayer has become its majority shareholder. The value of the shares of both these banks plummeted. In September 2008 both banks faced collapse. The UK government stepped in with £billions to RBS in exchange for the majority of its shares. Arrangements were facilitated for Lloyds TSP to take over the Bank of Scotland to form a megabank with the government holding a substantial proportion of its shares. Any concerns that the Monopolies Commission might have were clearly going to be ignored. Efforts to keep the independence of the Bank of Scotland did not get the support they deserved from Westminster.
"We were done by the English"
as Alex Salmond, Scotland's First Minister put it. The finger was pointed at Lord (Peter) Mandelson, the Westminster Business Secretary - the Prince of Darkness, the King of Sleaze (1)
Bill Jamieson, the Editor of the Scotsman, described the situation well (2), with a commendable amount of heart-felt anger against the HBOS Board who presided over this shameful debacle. To quote his article
"It was lost through some of the biggest and most ruinous misjudgements made in the history of Scottish banking"
©www.land-care.org.uk
Reference
1. Irvine, James (1008). Gordon Brown's cabinet reshuffle: it could hardly be worse.
See HOMEPAGE, filed 04 Oct 08, www.land-care.org.uk Click Here to View
2. Jamieson, Bill (2008). Death of a bank: the downfall of a Scottish institution and how it happened Click Here to View
Finis
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