11 October 2010
BBC Scotland’s Trust Me I’m A Banker will be aired on BBC1 Scotland at 7.30pm tonight.
I helped to research the programme and was interviewed for it on whether the Graeme Shankland / Bank of Scotland Integrated Finance deal — which saw the ownership of a troublesome private equity portfolio amassed by HBOS at the peak of the credit bubble transfer to Coller Capital‘s ownership — represented a good deal for taxpayers. Despite protestations to the contrary from Lloyds Banking Group’s executive director of wholesale banking Truett Tate, the answer is definitely ‘no’. This is largely because the taxpayer has borne much of the pain in terms of writedowns on the cavalier loans extended by HBOS to fund Shankland’s buyout spree, while Shankland’s 20-strong team and Coller stand to profit handsomely from the new arrangement. The team had a part in writing down the value of the private equity portfolio from £1.4bn to £480m – which becomes the hurdle rate for future success fees and carried interest.
For more on why the BOSIF/Coller deal is bad for taxpayers, read my article from yesterday’s Sunday Herald.
- For more on BBC Scotland’s Trust Me I’m a Banker, click here
- Preview article from the Sunday Mail