Dismissed executive ‘warned HBOS of risk’

I felt it was important to post this article because it tells of someone with the guts to tell executive management that they were taking unnecessary risks even though he believed it ended with him being fired.

Paul Moore, who was dismissed as head of group regulatory risk in 2005, told MPs it was obvious then that the bank was “going too fast” but nobody would listen.”

I wrote about the dangers to an executive who “blew the whistle in my post, “What if an Investment Banker said this in 2006

So there can be no excuse that highly trained and professional financial executives, economists and bankers did not know what was going on.

Australian Reserve Bank Governor Mr Stevens said today the general opinion as stated by Mr Greenspan was, “We don’t know it is a bubble until it bursts”. What? Is this for real?

The thinking was they would fix it after it burst just like they did after the DotCom bubble. These are virtually Mr Stevens words today at the Australian Financial Committee meeting.

Can you believe that the people entrusted with the financial markets of the world thought it was okay to let the bubble burst and then fix it rather than reign in the people they knew were driving the bubble though better regulations?

There is no way the sub prime mess was unknown to them even if they did not realise the extent of the damage. The IMF mentioned in 2007, it a bit late but never-the-less they were well aware of the potential problem which they spoke of in a speech to the Association for Financial Professionals, Global Corporate Treasurers.

The mind boggles and what these intelligent people were thinking to allow the world to go over the financial cliff stripping billions off Baby Boomer nest eggs as well other investors.

The other problem though was you jeopardised your future if you spoke out as Paul Moore did. This is why we will always get ourselves into bubbles and why you need to know when it is coming, so you can stand aside and protect your nest egg.

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