Do the government actually know what they are doing?
The frightening allegations with regards to a whistleblower at HBOS and Sir James Crosby have caused serious damage to the UK authorities and put a question mark over the structure and thinking behind the ongoing UK banking rescue packages. While we suggested in some of our earlier post that the Treasury select committee may well reveal certain factors and rumours which would embarrass the government, the Sir Crosby affair has been a major shock.
While Gordon Brown came in for some severe criticism in the House of Commons today this is just the start of what is sure to be a very very difficult period for the PM of the UK. Alistair Darling does not escape unscathed from the HBOS affair as he too had a direct knowledge of what was happening and who was to be appointed as the FSA's deputy chairman and part of the UK government's inner circle of economist. In reality, Alistair Darling's position has been under severe threat for some months with suggestions that Gordon Brown is on holding off appointing a replacement until the economic climate improves.
It will be interesting to see the next polls from UK voters as the Tory party recently raced into a 14% lead over Labour with the Liberal Democrats seriously competing for second place in the charts with Labour.
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