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Sad tale of greed and incompetence that led to demise of once-proud bank

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Published Date: 15 December 2008
It is hard to argue with the words of Bill Jamieson (your report, 13 December) regarding the fiasco that is now the Bank of Scotland.
I, too, have been a customer for more than 50 years and am also a long-term shareholder. I am appalled by the utter incompetence demonstrated by the board of Bank of Scotland. Clearly, their badly judged decisions have ruined the bank.

If it is co
nfirmed that Andy Hornby, the chief executive, has, indeed, been offered and accepted a position with Lloyds TSB at a salary of £720,000 pa, then it beggars belief. It represents the sticking up by Hornby of two fingers to his loyal bank staff, to Bank of Scotland customers and to the bank's shareholders – those he was appointed to serve. It is behaviour like this that gives capitalism a bad name and speaks volumes about the culture of greed among those who have brought the Bank of Scotland to its knees.

Someone said on television that these people should be thrown into jail for what they have done. Perhaps this is just a little strong, but certainly they should never be allowed to serve in senior positions again.

MARTIN E PAYNE

Mercat Green

Kinrossie, Perthshire


I think Bill Jamieson may be wrong in his belief that he has been an account holder with the Band of Scotland for 53 years – I understand the British Linen Bank merged with the BoS in 1971. So it has been part of BoS for only 37 years.

After that, BoS continued its excellent tradition of banking service and, indeed, in the those days, the Halifax was a typical sound building society. The rot set in when the Halifax started to be a "sort of a bank" – customer service plummeted. I was appalled when the BoS then merged with the Halifax. After two years of chaos, things improved from a customer point of view. I just hope we do not have to go through a repeat of those dreadful years if and when the two bank systems (LloydsTSB and HBOS) are merged.

One further point – in your Editorial, you refer the BoS as the oldest Bank in the British Isles. The Bank of England was founded by a Scotsman, William Patterson, in 1694. The Bank of Scotland was founded in 1695 by John Holland, an Englishman.

(DR) FR PARTINGTON

Glamis Road

Dundee


Congratulations on your excellent coverage of the "Death of a Bank". A very sad day for Scotland is marked by moving journalism that precisely echoes the sentiments of many people in this country.

If we are to accept the Bank of Scotland is, indeed, dead, and given its roots in an act of the Scottish Parliament in 1695, perhaps it would be appropriate to create a New Bank of Scotland by way of a new act in a new Scottish Parliament, with a new constitution, a new set of rules and new standards designed to prevent a repeat of the outrageous and despicable actions that led to the demise of our oldest bank.

ALASDAIR GILLIES

Bowmore

Islay


Your otherwise excellent analysis of the rise and fall of HBOS omits one crucial factor – the political element. Once Alex Salmond and Alex Neil became involved, party politics and point scoring demeaned the campaign to "save" the bank. Snide remarks about "Number Ten" would have frightened off any genuine international interest. Mr Salmond just cannot help being the opportunist opposition politician. He is unable to rise above putting the boot in, even when diplomacy is required.

ALEXANDER McKAY

New Cut Rigg

Edinburgh






Page 1 of 1

  • Last Updated: 15 December 2008 2:00 AM
  • Source: The Scotsman
  • Location: Edinburgh
 
1

Hugh Roscombe,

14/12/2008 21:22:53
Alexander Mackay

Rubbish! Look further south for political bullying.
2

subrosa,

15/12/2008 00:25:52
Oh dear Mr McKay, you really are bitter aren't you. I suspect you'd like the Scottish Parliament demolished so as you can sit and coddle your love of being governed by another nation.
3

Dr. James Wilkie,

Vienna 15/12/2008 00:44:51
What sort of diplomacy does Alexander Mackay imagine would have prevented this merger, when the Prime Minister and Chancellor were hell-bent on pushing it through, to the extent of breaking their own law to do so? The predominantly Halifax directors of the merged HBOS were also determined to push this measure through for their obvious financial advantage, and the majority former Halifax shareholders as well as the large institutions wanted to enhance the value of their holdings.

Fact is that the Bank of Scotland should never have been merged with the Halifax in the first place. It can, of course, still be demerged from the new group at some time in the future. If it is any consolation, the letter H will presumably now be removed from the BOS signs all over Scotland.

4

The Answer,

Glasgow 15/12/2008 00:54:45
"
3 Dr. James Wilkie,Vienna 15/12/2008 00:44:51

If it is any consolation, the letter H will presumably now be removed from the BOS signs all over Scotland."

And with much hope "bank of bankrupt scotland" signs took down from the English high street..
5

Rudi Hucker,

Uddingston 15/12/2008 10:23:09
Surely the shareholders of Lloyds TSB should be asking some very serious questions as to why the man who destroyed Bank of Scotland is being given nearly three quarters of a million pounds a year in their bank? Martin Payne shouldn't be writing about these people never holding senior positions again - any half-decent business would, I feel, be very wary of letting them loose on another institution.
6

jj veritas,

15/12/2008 11:20:48
The banking mode; the public sector pensions model; the similar greed at the top - it is only the beginning of the collapse.
7

john birkett,

St Andrews 15/12/2008 12:28:41
Dr Partington, the editorial read "oldest clearing bank" if I remember correctly.
8

Amanda Huginkiss,

15/12/2008 14:16:18
1 and 2# Typical Nats! It was the English what done it!
Alexander McKay, as usual, hits the nail on the head. Salmond is an idiot and a political opportunist of the worst kind.
9

Sierra Foothills Scot,

Diamond Springs 15/12/2008 15:30:43
#9 Amanda Huginkiss -

Nobody said the English "done it". The Westminster government are the ones "what done it".

Now try to tell us Gordon Brown is not "an idiot and a political opportunist of the worst kind."
10

Colin Wilson,

Aberdeen 15/12/2008 20:02:10
Re #9 : Huginkiss is a (British) nationalist, you see.

She gets to invent other people's views for them.

 

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