The BBC’s Peston has been pumping out article after article that strangely enough seem to favour the Labour Party…his latest effort doesn’t buck the trend…
Reading it you get the impression that Peston is desperately looking for something to say that is negative about the Tory manifesto. He is tortuously constructing a case against the Tory policy to take the lowest paid out of tax claiming that it goes against all Tory principles…but it doesn’t….Low paid workers get allowances and tax credits and many other benefits….upping their actual pay will take the bureaucracy out of that…rather than being taxed and then having to reclaim that tax they get it direct.
Peston bizarrely moans that the Tories are too left wing…..
This is not a point about whether the state is too generous to them.
It is about the contract we all make with the state.
And he goes on and on in a similar vein...’And another thing…’….it does look like he is determined to attack the Tory policies in a very negative manner…after all, taking the poorest out of tax altogether must be a Labourite’s dream…apparently not, when it’s done by a Tory.
Anyway….here’s ‘another thing’ to keep you amused…some old history from the Guardian…enjoy….
One of the more interesting parts of the new Banking Act is its abolition of the requirement for the Bank of England to issue a weekly financial return. Combined with a certain BBC journalist’s rational desire to get ahead, it was the knowledge that the Bank of England would eventually have to fulfil its weekly compulsion to tell the world what it was up to that was the chief cause of the Northern Rock bank run.
Theoretically, removal of the weekly return requirement allows covert intervention into the banking system, and may possibly be used by the Bank to prevent future bank runs. This would let the Bank better fulfil its role of ensuring financial stability – thereby serving the public good, rather than that of Robert Peston.
When someone at the Bank of England (or the Treasury?) leaked to him that Northern Rock was turning to the Bank for support, Peston rationally decided to reveal all to the public in the BBC’s Thursday 13 September 2007 evening broadcasts. Peston argues that it was in the public interest to do so. This is debatable.
It was quite clear to anyone who has studied any financial history that a bank run would ensue. Indeed, I was waiting at the entrance to my local Northern Rock branch early on the Friday morning to watch the queues as they started to form.
The big question is this: would the run have occurred without Peston’s broadcasts?
Peston’s broadcasts of his insider information meant that the Bank and the Treasury could only react to the run and did not have the time to proactively prevent it from occurring. A bank run could have been quite easily avoided altogether.
Peston has been blamed by many others for the Northern Rock bank run, most notably by members of the Treasury select committee. (Others have interesting ideas that the Treasury engineered the bank run itself in order to nationalise Northern Rock on the cheap, using Peston merely as a pawn.) Peston, of course, has vigorously defended his actions.
He had a role in causing sufficient panic among depositors for them to run on their bank. A defence that he didn’t know he would cause a run is not a very good one.
The BBC’s Business Editor Robert Peston broke the story of Northern Rock’s descent into crisis and has been blamed for causing the subsequent run on the bank.
On a recent trip to the bank’s home city of Newcastle he was confronted by Doreen and Denis Shannon who lost £60,000 from shares in Northern Rock and with it their retirement savings.