Monday, 19 January 2009

Tory councils, investment advisors, and the Iceland banking fiasco: it's not what you know, but who you know (unfortunately)

I will study this article in more depth in the next couple of days, to judge just how 'scandalous' - or not - it is, but it is certainly interesting. It's about Barnet council - among others - taking investment advice from Butlers, a company run - for profit - by the Conservative Party treasurer Michael Spencer.

According to a report in the Independent newspaper:

"[Butlers] gave investment advice to almost half the councils facing a funding crisis as a result of the collapse of Iceland's banks, an investigation by The Independent reveals. Councils who paid Butlers for strategic advice were almost twice as likely to have lost money in the three main Icelandic banks as those advised by other companies.

"...The scale of Butlers' involvement in the crisis will embarrass the Tories, who control many of the affected councils. It is also a blow for Mr Spencer, the chief executive of ICAP [Butlers' parent company] who holds a 20 per cent stake in the listed company."

1 comment:

Rog T said...


Couldn't agree more.