Crunch explained

In a very readable Guardian article, John Lanchester explains the crunch and asks whether our view of the markets can ever be the same again.

"The most hated accountant in the world?"

The title link is to a video interview with Sir David Tweedie, chair of the IASB. Sir David is his usual engaging self, but steadfastly avoids admitting that mark-to-market accounting may have had something to do with the current crisis. The nearest he gets is to suggest that accounting in its current form may not be usable as a way of regulating bank lending. To me, this suggests that, if it can't be used for this purpose, it's not portraying the reality Sir David is so keen on.

Winding up Lehman Brothers

This article (click on the title link) by Jennifer Hughes in the FT magazine is a fascinating account of what the accountants did when the took over Lehman Bros after it became insolvent. It's rare to come across well written and interesting pieces about the work of accountants. This is definitely one of them.

More Humour

Obama's journey to the White House in biblical style.

PWC voted 'employer of the year'

I suppose it all depends on what you want out of life, or perhaps things have changed from when TG was a lad. Auditing in some dismal location in East London for £1200 a year was not my idea of fun.

More seriously, there probably isn't a better introduction to the business world than training with a large firm of accountants.

How long is your arm?

The government has announced that its investments in banks will be administered through a new company UKFI that will manage them on an 'arms-length' basis. Two questions arise: 'Can the management really be independent of the influence of government?' and 'Do we want the management to be independent of government'. The answer to both questions seems to be, 'Not really'. It's doubtful if UKFI will operate like an independent bank and allow its investment companies to pursue the same kinds of policies that they once did. That's probably a good thing. It would be nice to see the banks run in a manner that the general public would find acceptable ie sticking to the knitting of sound commercial banking, largely lending on the basis of the deposits they receive and paying their staff the kinds of salaries that members of the general public think are adequate for 'indoor work with no heavy lifting'[1].

[1]I'm indebted to the books of Terry Pratchett for the formulation.

Corporate Law and Governance Blog

I've added a link in the sidebar to a blog by Robert Goddard at Aston University where he records developments in corporate law and governance. Thanks to Robert for providing a most useful resource.