Rothschild criticizes City of London for lack of ethics

Rothschild: Banks turned a blind eye to sub-prime

This is Money | Oct 2, 2008

by Jonathan Prynn and Hugo Duncan

One of the banking world’s most respected grandees criticised the City today and called for a massive overhaul of regulation.

Sir Evelyn de Rothschild said there had been a collapse in ethical standards among banks in recent years, which had been ignored by watchdogs, rating agencies, shareholders and accountants.

The 77-year-old head of the banking dynasty issued a sombre warning that the crisis would get worse before it gets better. ‘We should not be under any illusion in this country that sub-prime is only an American problem,’ he said.

It came as another senior City figure, private equity boss John Moulton, said it could take seven years for the British economy to recover from the crisis that has brought the world’s financial system to its knees.

The outspoken comments were made on another day of grim economic news pointing to increasing damage to the ‘real economy’ from the credit meltdown.

A survey from the Bank of England suggested that banks plan to rein back their lending to families and small businesses over the coming months.

The report said: “In the three months to mid-September, lenders reported that they had reduced the availability of credit to households and corporates by more than had been expected three months ago. Lenders anticipated additional reductions in credit availability in the next three months.’

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There were also bad figures from the construction industry, record falls in house prices reported by the Nationwide-and a six per cent fall in sales from Marks & Spencer.

The only good news was that City economists now believe that a cut in the Bank of England’s base rate to avert a slide into a deep and long lasting recession is likely. That would cut the rate from 5% to 4.75%, bringing instant financial relief to millions of borrowers on tracker mortgages.

But the worsening economic outlook increased recriminations over how the City landed the economy in such a mess.

Sir Evelyn, speaking on Radio Five Live, accused the banking community, including the regulators, of turning a blind eye to the explosion in the British sub-prime mortgage market.

He also declared that investors in the banks should have acted to control bankers’ pay and the risk-taking of management. ‘What are shareholders for? I think shareholders have not been speaking up.’

He added: ‘You can also look to the accountants. It is their job to dig deep into the accounts and assess the risks a bank is taking. I mean, some of these American banks were 20 to 30 times leveraged – that is something I have never heard of.’

De Rothschild said the only way out of the crisis was to improve regulation and license anybody involved in financial services.

The veteran financier, who has seen many crises, added: ‘You have to have regulators who are properly paid and who properly understand the situation. And you should have a licensing system like you have in pubs where if you break the rules, they take away your licence.’

8 responses to “Rothschild criticizes City of London for lack of ethics

  1. Rothschild needs a bit of good PR, so he gave it to himself.

  2. whosaysihaveone

    indeed, danny. though recently, i’ve begun wondering whether the rothschilds are actually the elite of the elite of the elite that many proclaim them to be. if we know who they are, even their names, then they can’t be the capstone of the pyramid; they may be close, maybe the top part before the split, but there are darker forces more powerful than even them. in any case, it doesn’t change anything. change who you think you are, who they’ve said you are and their power is infinitely obsolete.

  3. thats pathetic …a Rothschild talking about values in banking….hahahhaha..
    well lets have a look at one of manyyyyy different documantaries about the banking system history,how the lending history is been attached to wars and then ask him about his family roll in it!!!that would be a thrill to hear from him.

  4. Ain’t he a conscience–after all this time!

  5. Pingback: El "Nuevo" Orden Mundial va tomando color - Page 13 - Burbuja Econmica

  6. “WhosaysIhaveone”

    The Rothschilds are the top of the capstone. It’s all about who controls the money, and that’s it. The Rothschilds control the money and therefore our lives.
    Do yourself a favor, don’t start looking for conspiracies where there aren’t any because you’ll lose sight of what’s really transpiring around you. And instead you’ll start focusing on outrageous conspiracy theories like the “Reptilian Agenda,”
    “Annunaki,” “Atlantis,” “Space Aliens,” and so on…
    You’ll start contemplating that garbage as fact instead of grasping the real issues.

    It sucks when you finally discover whose pulling all the strings because it leaves you with nothing else to research.
    Also you have to realize that the Bilderbergers, Rothschilds, Morgans, Rockefellers, and the Queen Beatrixs of the world have to protect themselves from us so from time to time they have to set up phony PR programs in the hopes of keeping us distracted.

    Don’t get distracted because it is they who pull the strings of the Globalist Agenda.

  7. It is called hiding the conspiracy in plain view.

    That is why the Rothschilds may or may not be near the top/bottom. See Springmeier’s Bloddlines of the Illuminati.

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