Extensive interpretation of race discrimination by UK courts

It is no secret that nationals from countries where their employer is domiciled often do - or at least appear to - get preferential treatment from their respective employers. This applies to banks and other financial institutions irrespective of their country of origin. This may well be considered unfair by some observers but could on the other hand be justified to some extent. How many Europeans working for a Japanese bank for example are fully conversant with the Japanese Language? And in the future we will have a tough time to find many seasoned professionals able to express themselves fluently in Mandarin, Russian or Arabic. So we noticed with quite some bewilderment that an English court can use legislation intended to fight race discrimination when sitting in judgement about an compensation claim by an English employee working for a French bank here in London. If the Gold Standard would have to be applied in every decision concerning promotion it would mean that in nearly every case the employee who loses out would have a case to sue. In addition, who determines which employee merits promotion more? Should every decision have to be submitted to a court or tribunal before it becomes effective? Politicians, the Courts and pressure groups all combine to make the UK a less efficient and less inviting place to locate a business and court cases such as this one are the worst possible advertisement for UK Plc.

Goldman to write down stake in CMC Markets

News that Goldma Sachs is to write down the value of its £140 million minority stake in CMC Markets is proof for the fact that even the most savvy acquirers sometimes succumb to hype and a good story. Over the years we have seen numerous instances when a gullible financial press has reported valuations of businesses about to be floated that were inspired more by the aspirations of the selling shareholders and their advisers rather than by thorough analysis of the underlying values of the business. Numerous academic studies have demonstrated that at best half of all acquisitions are successful and any firm contemplating strategic transactions would be well advised to consult advisers that are not driven by fees but have the interest of the client at heart.

Some simple rules for banking reform - and no need for a PhD either!

One aspect of banking reform that has been completely neglected would be the requirement to match the maturities of assets and liabilities more closely. While 100 pct will never be practical there should be tight guidelines. Bands of maturities on both sides of the balance sheet should be closely matched to about 90 per cent. Large banks, and in particular trading firms, should not be able to roll a mountain of short term debt to finance highly speculative positions and hope for the best - or the next taxpayer-funded bailout. The huge interbank market is also ripe for more regulation. There simply is no need for a fragile house of cards of interbank positions on which to build a proper lending business. A small amount of interbank lending is always required to smooth positions but every bank should mostly rely on deposits from its own customers (and matched as to liquidity). These rules are simple to monitor, no PHD or even MBA is needed, just sound people with common sense and a health work ethic (in contrast to a bonus ethic)