Everybody loves a conspiracy theory and here's one that I've got on the recent UK banking bail-out.
It starts with BBC's business editor Robert Peston whom many have now heard of - the strange-talking, whirly-hand moving robot reminiscent of sci-fi films.
The 'insider' scoops of information with which Peston has made news first on HBOS-Lloyds and then on the bank bail-out has been brought to the attention of the SFO (Serious Fraud Office) - see The Guardian's article - because this information is effectively market-based (i.e. share prices moved) and therefore effectively amounts to insider trading (somebody made a lot of money from trading in the news).
There is particular concern over deliberate leaking of market -sensitive information coming from a 'mole' inside The Treasury/Downing Street. What is more concerning is that the BBC didn't seem to apply any due diligence either on this issue and have therefore left Peston a little exposed. I've no doubt that the Government will try to suppress whatever investigation is proposed.
The conspiracy theory
However, more interestingly, I think there's a bigger story. 'News' over the weekend that the proposed bail-out terms had been planned weeks in advance in The Treasury (so it wasn't big Gord's big idea anyway) leaves me with some disturbing thoughts.
Certainly in the run up to the eventual UK bail-out there were several opportunities to suspend the main bank stocks for several days as has been previously done in history. This would have provided some breathing space to have put in action a plan which would have resulted in far less money to be pumped into the banks (if any at all).
An announcement of a properly thought-through plan (clearly agreed plan with banking representatives) prior to a market re-opening would have probably stopped the 'panic' selling. There are previous precedents most notably the US in the 30s.
But, for a moment, put yourself in the position of a 'control freak' prime minister who is desperate to make a mark in a superhuman kind of way.
Why not let banking stocks continue to fall with the leaking of 'privvy market information' (particularly to the BBC) so you can come in at the last minute and 'save the world' by pumping a huge amount of taxpayers money? And also get control of the banking system? And be (wrongly) seen as a 'super-hero'?
If you don't think so just look at the instructions attached to the bail-out about banks to return to lending levels in 2007 (this is why we have a mess in the first place!!!!!!!!!!). This is a clear example of a much bigger hidden (and wrong) agenda. Quite chilling..............that you can think that to solve big economic problems you can control the housing and lending markets. Very chilling......Very stupid........Very dangerous........Very SPECTRE in a James Bond fashion - Gordon Brown as Blofeld anybody?)
As for Robert Peston - just a pawn in a much bigger game............
Yes its a good conspiracy theory and one that grows by the day........
My memory of this whole episode will be the comment of the unfortunate Fred Goodwin (ex RBS boss). When asked about the discussions with the Government he replied "Not so much a meeting more a drive-by shooting."
You make your own mind up.......
