BP Spills Coffee

Hat-tip to BoingBoing

Phat Fees: A Regulatory Requirement

It will be fascinating to see what comes of the Office of Fair Trading investigation into fees charged by banks for underwriting share issues.

League tables via FTAlphaville demonstrate there's a lot at stake - although the OFT seems to think there's £2bn in fees as opposed to Reuters figure of £940m. So, right away it appears the OFT may be casting its net wider than the banks would like.

Will the result be the opening up of financial markets with simple financial products accessible to all, or will the regulatory framework continue to funnel all our major investment opportunities and investment funds into a killing zone reserved for a privileged few?

Place your bets now!

We're Going On A Bear Hunt

While the fiscal bears are rampaging across Europe, devouring costs wherever they can be found, the old bulls bellow that the planned austerity measures are dooming us to a vicious spiral of debt deflation:

"Leading the criticism is Nobel-winning economist Joseph Stiglitz, a former chief economist at the World Bank who now advises several governments and has warned against what he terms the "deficit fetishism" of the cost-cutters.

In an interview with French newspaper Le Monde this month, Stiglitz said that Europe "is facing disaster if it continues along this path.""

But disaster has already struck, let's face it. And the fiscal bulls borrowed and spent til there was no alternative but to reign in and restructure. With apologies to Michael Rosen:

We can’t go over it.

We can’t go under it.

We've gotta go through it!

Squelch, squelch, squelch

Image from Natureandkind.com

Travels In The Blogosphere

Amidst quitting my Crackberry habit, and acquiring a mild case of iPhonitis, I've largely been lurking in the blogosphere this week, reading up on:

• Russian spammers and botnet-sympathisers;
• Opening up government spending data;
• Sampling Chris Marsden's new blog on Internet co-regulation and African mobile roaming exposé;
• Wondering whether wavy Dave can create as many private sector jobs as little Johnny Major;
• Digging into Vince Cable's war on red tape;
• Tearing the flesh off the bones of the FSA, despite it's mammoth fine for JP Morgan Securities' indiscretion with client funds.

Not to mention keeping a beady eye on our MPs expenses habit.

As with last weekend, I hope to spend some of this one writing the next instalment of Green, a literary experiment best described as a gradual story. Hope you like it.

The Turning Of The Screw

All the squealing from MPs about the harshness of their new expenses rules - not to mention the odd high profile resignation - suggests to me the system is working.

We aren't seeing a lot of specifics about why the new system is too draconian. For instance, Emily Thornberry (Labour, Islington South and Finsbury) is quoted as saying:

“It’s not fair that we’re being cut back on the amount of work we can do.”

Nice drafting, Emily. Of course, this is a plea based on moral panic. Only each MP is really in a position to know whether this statement is true. It implies MPs are running their offices in the most efficent manner possible, and they "can" do work now that the new expense rules won't permit. By using the word "can", Emily can wriggle out of any attack on her record, or any other MP's record - she has not said specifically that she or they will no longer be able to do X or Y.

Don't trust 'em, I say. Keep turning the screw.