Yeh! Kick ‘em in the bollocks

Three City bruisers are at it. The angelic Tim Linacre of Panmure Gordon, Oliver Hemsley of Numis and Alex Snow of Evolution are upset with some of our banks.

This is like Sir Alex Ferguson thanking the referee for disallowing a United goal.

Their complaint is that RBS and Lloyds are indulging in ‘corporate bullying’ . Specifically they are alleging that the naughty banks, when a Company (aka their client) announces a rights issue (so it can pay off its debt with the bank), the banks (the so and so’s) threaten (in a nice way) that they will continue to lend only if the Company uses their brokerage and corporate division for the deal.


Which means that Messrs. Linacre, Hemsley and Snow don’t make as much money. This results in reduced multi-million bonuses (paid for by their clients).

They have written to Lord Myers.

A bottle of champagne (paid for by the editor) for the first entry correctly identifying the function of this official.

I will save your future ire by not repeating the pleas made by the three plaintiffs.

Let’s get this straight:

  1. City brokers are some of the most ruthless, avaricious and pragmatic professions anywhere. If there is a way of earning a few more (million) bucksthey will find it. They use litigation without thinking to get their way.
  2. What RBS and Lloyds are doing is trying to protect their profits and as a tax payer and thus an investor in these collapsed and discredited bodies I must applaud them.
  3. The three brokers have chosen the wrong fight. My own opinion is that their position is without foundation.


BUT I do love it when somebody bashes the banks because of the way in which they have, in so many cases, failed to support my friends in Enterprise Britain.

One example of where the banks have abused their position is in respect of their factoring companies. There used to be a healthy factoring industry but the banks have effective taken it over. Why. Because when a customer has a strong debtor book they try (with great persuasion) to transfer overdraft support to factoring. If it were additional support that would be fine but all too often the bank is really trying to secure its position with the debtor book.

Who wins? The bank.


Who loses? The customer.

And experience tells us that Bank’s fees are higher than some of the factor companies.

Of course Messrs. Linacre, Hemsley and Snow could help Enterprise Britain members.

Not a chance. City brokers are unlikely to consider any client under a capitalisation of (say) £25/£50 million.

Put another way, EB members simply can’t afford them.

QUIZ RESULT – Lord Myers is the City Minister.

Sorry. I’ve drunk the champagne.

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