Comments on: Where is the liquidity crisis? http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/ Richard Murphy on tax and corporate accountability Thu, 08 Jan 2009 01:30:51 +0000 http://wordpress.org/?v=2.6 By: Should the auditors have known the banks weren’t a going concern? | called2account http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-511728 Should the auditors have known the banks weren’t a going concern? | called2account Wed, 12 Nov 2008 05:45:32 +0000 http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-511728 [...] any reasonably informed observer knew that HBOS suffered early exposure to the resulting issues. I mentioned it in September 2007 on this blog. HBOS’s securitisation vehicle, Grampian, was already in [...] [...] any reasonably informed observer knew that HBOS suffered early exposure to the resulting issues. I mentioned it in September 2007 on this blog. HBOS’s securitisation vehicle, Grampian, was already in [...]

]]> By: Auberon http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-277645 Auberon Mon, 19 Nov 2007 10:05:41 +0000 http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-277645 Do you distinguish between a "liquidity crisis" and a market upward move in short-term rates? To me, a "liquidity crisis" means that lending markets are closed. But this is not what has happened - banks just want higher interest rates to lend to each other. Do you have any evidence that banks willing to pay the higher interest rate were unable to receive funding? Do you distinguish between a “liquidity crisis” and a market upward move in short-term rates?

To me, a “liquidity crisis” means that lending markets are closed. But this is not what has happened - banks just want higher interest rates to lend to each other.

Do you have any evidence that banks willing to pay the higher interest rate were unable to receive funding?

]]> By: Tax Research UK / The Observer on Special Purpose Vehicles http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-196804 Tax Research UK / The Observer on Special Purpose Vehicles Mon, 01 Oct 2007 10:26:21 +0000 http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-196804 [...] I asked recently why no one was talking about the risks to ordinary people in the UK from the use of ’special purpose vehicles’ (SPVs) by banks such as Northern Rock’s Granite companies and HBOS’s Grampian set up. [...] [...] I asked recently why no one was talking about the risks to ordinary people in the UK from the use of ’special purpose vehicles’ (SPVs) by banks such as Northern Rock’s Granite companies and HBOS’s Grampian set up. [...]

]]> By: UK Debt Blog » Where is the liquidity crisis? http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-177636 UK Debt Blog » Where is the liquidity crisis? Mon, 17 Sep 2007 14:48:19 +0000 http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-177636 [...] unknown wrote an interesting post today onHere’s a quick excerpt [...] [...] unknown wrote an interesting post today onHere’s a quick excerpt [...]

]]> By: shaun http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-177607 shaun Mon, 17 Sep 2007 13:41:01 +0000 http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-177607 If the crisis at NR is because of non functioning market, it should be helped over the short term issue or medium term issue. An appropriate penalty interest rate ( note penalty already administered by the market). The depositors should be protected, the regulators should be reviewing this closely for anticompetitive behaviour. The regulator should investigate if the problems at the big banks and hence reluctance to lend has caused this problem, rather than NR actions and think innovatively how to protect the public interest, without indulging private interests. If NR is a victim because it is small then what happens when all the small institutions are gone! Lets hope some calm and common sense returns including Real Independence for the BOE./FSA, If Europe would let us. An ability to track and COMMENT WARN on if not control monetary growth as an objective target not just CPI. Limiting corporate debt interest deductability may need to be considered including a review of accounting for offshore off balance sheet activity. Law or economic reality tests come to mind. Seem to remember this from +20 years ago. Although the government some would suggest has done similar off balance sheet financing smoke and mirrors. PFI, Network Rail, non funded pension promises, taxing mostly private funded schemes (cf non funded schemes), ensuring that contacting back in to a non funded state scheme is 'better' increasing tax take initially. Its not the governments fault or within its time horizon, they probably never expected to win 3 or 4 terms. GB may need to think carefully how to make our system robust and to avoid short term interests political or otherwise harming the long term UK economy. If the crisis at NR is because of non functioning market, it should be helped over the short term issue or medium term issue. An appropriate penalty interest rate ( note penalty already administered by the market). The depositors should be protected, the regulators should be reviewing this closely for anticompetitive behaviour.

The regulator should investigate if the problems at the big banks and hence reluctance to lend has caused this problem, rather than NR actions and think innovatively how to protect the public interest, without indulging private interests.

If NR is a victim because it is small then what happens when all the small institutions are gone!

Lets hope some calm and common sense returns including Real Independence for the BOE./FSA, If Europe would let us.

An ability to track and COMMENT WARN on if not control monetary growth as an objective target not just CPI.
Limiting corporate debt interest deductability may need to be considered including a review of accounting for offshore off balance sheet activity. Law or economic reality tests come to mind. Seem to remember this from +20 years ago.

Although the government some would suggest has done similar off balance sheet financing smoke and mirrors. PFI, Network Rail, non funded pension promises, taxing mostly private funded schemes (cf non funded schemes), ensuring that contacting back in to a non funded state scheme is ‘better’ increasing tax take initially.

Its not the governments fault or within its time horizon, they probably never expected to win 3 or 4 terms.

GB may need to think carefully how to make our system robust and to avoid short term interests political or otherwise harming the long term UK economy.

]]> By: Tax Research LLP http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-177303 Tax Research LLP Mon, 17 Sep 2007 08:16:02 +0000 http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-177303 Dennis It has - seen the Northern Rock share price? You can bet a lot of people own then, directly or indirectly And the Bank of England is lending at risk So there is a cost Richard Dennis

It has - seen the Northern Rock share price? You can bet a lot of people own then, directly or indirectly

And the Bank of England is lending at risk

So there is a cost

Richard

]]> By: Dennis Howlett http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-176954 Dennis Howlett Mon, 17 Sep 2007 01:20:15 +0000 http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-176954 If anyone believes politicians then they're crazy or naive :o Hasn't cost anyone anything - yet. If anyone believes politicians then they’re crazy or naive :o

Hasn’t cost anyone anything - yet.

]]> By: Tax Research LLP http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-176247 Tax Research LLP Sun, 16 Sep 2007 16:29:35 +0000 http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-176247 Dennis All true - and more to come from me on this as yet But ponder this one: you\'re right that only 90% of most deposist is covered. Alistair Darling has said it\'s 100%. How much has that cost? Richard Dennis

All true - and more to come from me on this as yet

But ponder this one: you\’re right that only 90% of most deposist is covered. Alistair Darling has said it\’s 100%. How much has that cost?

Richard

]]> By: Dennis Howlett http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-176029 Dennis Howlett Sun, 16 Sep 2007 13:22:39 +0000 http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-176029 Even if Northern Rock fails, deposits up to £33K are 90% protected. Feet on the street say NR will be acquired. So far. potential suitors are uncertain about the balance sheet - which says a lot. Even if Northern Rock fails, deposits up to £33K are 90% protected. Feet on the street say NR will be acquired. So far. potential suitors are uncertain about the balance sheet - which says a lot.

]]> By: Tax Research LLP http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-173934 Tax Research LLP Fri, 14 Sep 2007 16:21:56 +0000 http://www.taxresearch.org.uk/Blog/2007/09/14/where-is-the-liquidity-crisis/#comment-173934 The people queuing outside Northern Rock today don't seem to give that much credibility, do they? And these things roll I'm worried Richard The people queuing outside Northern Rock today don’t seem to give that much credibility, do they?

And these things roll

I’m worried

Richard

]]>