Only paid $1.5 million for destroying Northern Rock

People have an amazing ability to justify anything in their minds. ‘Abilities’ is defined in the free dictionary as “The quality of being able to do something, especially the physical, mental, financial, or legal power to accomplish something.” Our emphasis is on the financial. (perhaps it should be on the power to accomplish something?) Positive …

Enron, Sarbanes-Oxley and the subprime mess

The excesses of the current ‘subprime’ era are not the only excesses with ties to structured finance transactions. Many banks were sued by Enron Corporation. Enron filed suit in September 2003 against 11 banks, accusing them of conspiring with former Enron officials to manipulate the energy company’s finances. Enron says the banks helped set up …

Subprime lines lead to global recession

Fallout from investments in the United States, subprime debt, and commercial paper has spread around the world. Some countries are feeling the impact as infection in the US has spread to the real economy around the world. Profits at Dutch-Belgian banking group Fortis halved in its fourth trading quarter after a worse-than-expected 1.5 billion (£1.15bn) …