John Ward – Bank Scandals : Slog Predictions Vindicated As UK Banking Sickness Surfaces – 20 June 2013

John WardYou read it here first: City regulator admits to £25bn banking black hole

‘Is a big UK bank scandal about to break?’ I asked last Sunday, adding, ‘Deputy Bank of England Governor Paul Tucker – he who allegedly told Barclays to lie about the Libor – resigned in something of a hurry last Friday. He wasn’t expected to. And the RBS Chairman Sir Win Bischoff is also backing away from events at the ‘troubled’ bank, dropping broad hints that he “won’t be around much longer”…….[Osborne’s] problem seems to be one of a politician keen to distance himself from a mess in which both the Bank of England and the Treasury knew perfectly well what was going on. Stay tuned – this could get interesting.’

That same morning, veteran Blogführerin Anna Raccoon beat everyone to the punch in grasping the political significance of the Labour Party’s debt with a struggling CoOp Bank.

It soon got very interesting indeed, as The Slog delved a little deeper last Tuesday and wrote ‘we are about to experience Britain’s first bailin. Holders of certain [CoOp] bond types (and we’re not talking wealthy folks here – far from it) will get a haircut calculated by the MoS to be around 30%. I understand it may be much higher than that. Prepare for an official announcement as the week unfolds.’

Within two days, the haircut prediction was confirmed : ‘I said that the official estimate of a 30% haircut for the CoOp Innocents to the Slaughter was way on the low side, and yesterday afternoon the Telegraph confirmed this with a piecereporting how Moody’s expects ‘investors in these bonds to only be able to recover between 35pc and 65pc of their original investment, with the negative outlook indicating the risk that the final loss faced by investors may be greater.’ This Slogpost went on to point out how ‘Lloyds CEO António Horta-Osório told the TSC “We had doubts about Co-op’s capability in December 2012 when we were given the revised plan for the Co-operative Group,” he said. “From the combined plan for Co-op and TSB, our analysis was clear that there was a shortfall of capital. And that was when we had our first concerns about their ability to close the deal.” But the Treasury and the pols persevered.

At the end of Wednesday last, The Slog closed with ‘I’ve been told on umpteen occasions over the last few months that, like the slug he is, Bob Diamond left a trail of slime behind him at Barclays. I’m exceedingly glad tonight that I don’t bank with them.’

This little gem is in the Telegraph today:

‘The City regulator is to trigger one of the biggest ever capital raising efforts after laying bare funding gaps that amount to a £25bn black hole hidden in Britain’s banks.

The Royal Bank of Scotland is expected to account for at least 40pc of the shortfall across the sector when the Prudential Regulation Authority (PRA) reveals its breakdown of the individual capital requirements on Thursday.

The state-controlled bank needs to raise at least £10bn of capital and perhaps as much as £12bn to adequately provide for poor loans. Barclays may have a black hole of around £5bn, while Lloyds Banking Group as much as £8bn. The Co-Operative Bank said on Monday it needed to raise £1.5bn as a result of the PRA’s calculations.’

Now of course, the MSM trolls who visit here frequently know only too well that the blogosphere is full of sh*t, that we make it all up, and that I don’t really have any good sources at all – that’s just my little fantasy down here in rural France. Anna Raccoon is also similarly incompetent and clueless just down the road from me, so that’s why you should all go back to the mainstream, pissed, half-asleep plonkers who get it wrong time and time again in London’s bubble.

I make this trebles all round at the Raccoon Arms, and a straight sets win in the Slog v Serious Press playoff. Hurrah!


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