Comment, analysis and other offerings from Friday’s FT,
Lehman collapse: a catastrophe unfolds
See FT.com’s in-depth report combining comment, analysis and interviews with key figures surrounding the collapse of Lehman Brothers and its aftermath. On Friday, the second of a FT video series featuring John Thain, Bob Diamond and Rodgin Cohen who recall the crisis.
Lex: John Mack and Morgan Stanley
It is a long time since a banking boss stepped aside other than with an elbow in his face or a dagger in his back. John Mack’s departure in January from the chief executive’s office at Morgan Stanley, while remaining chairman, will also contrast with the nasty soap opera that led to the ousting of his predecessor, Philip Purcell, in 2005. Yet James Gorman, Mr Mack’s successor, who put together the retail brokerage joint venture with Citigroup, brings with him echoes of that past debate about what Morgan Stanley should be.
Gillian Tett: What bankers can learn from Chelsea football club
Goldman Sachs boss Lloyd Blankfein could learn a thing or two from English football, says Tett. A few days ago, Chelsea – a London team that (like Goldman Sachs) strikes fear and envy into the heart of rivals – was accused by Fifa, the international football body, of poaching players in a manner that caused it to breach contracts. Chelsea denies wrongdoing but Fifa has slapped a fine and temporary transfer ban on the club. It is a thought-provoking saga for Blankfein and other financiers and politicians currently wrestling with the bonus dilemma.
Emma Jacobs: Satirical attacks on capitalism
“Capitalism: A love story”, the latest documentary by Michael Moore – demagogue or truth-seeking crusader, depending on your viewpoint has been well-received at the Venice Film Festival. The subject lends itself perfectly to film according to Mr Moore because “it’s got it all – lust, passion, romance and 14,000 jobs being eliminated every day”. Banks, you’ve been warned.
To fix the system we must break up the banks
In coming up with solutions that address the immediate crisis but fail to tackle dangerous systemic issues, the G20′s emerging ideas on the banking industry bear a striking resemblance to the Americans’ response to the dotcom crash of 2001-02, write Philip Augar, a former investment banker and the author of Chasing Alpha, and John McFall, chairman of the Commons Treasury committee.
Martin Wolf: Turner is asking the right questions on finance
Lord Turner, chairman of the UK’s Financial Services Authority, is more than an acute analyst. He is also brave. He showed that in his struggle with Gordon Brown, then chancellor of the exchequer, over plans for pension reform published in 2005. He is showing that again today in the lively debate he has initiated on the future of financial regulation.
The Short View: Central banker speak
Central bank watching does not seem quite so dramatic a sport when the official story is “no change”. On Thursday that refrain came from New Zealand, the UK and Canada as all three kept rates on hold. We also heard yet more extraordinarily candid language from some of them about interest rate expectations. The blunt talk works right now because it is believable – we know we’re not out of the woods yet. But it seems unlikely that markets will get this level of candour when central bankers prepare to end their support.
Online Q&A: Quantitative healing
The extraordinary measures taken by central banks at the height of the crisis look to have played a vital role in stabilising world financial markets. But have historically low interest rates and quantitative easing, the creation of new money to purchase existing assets in an attempt to stimulate credit flow across the economy, really worked? Grant Lewis, head of fixed income research at Daiwa Securities SMBC Europe, will answer readers’ questions about the effectiveness of QE on Monday, Sept 14. Send your questions via ask@ft.com, or click the link above.