multiple of remuneration (salary) or some amount that most would consider conservative. If there was, for whatever the reason, a failure to perform under these loan agreements, the discussions were of a private nature between the director and the facilitating bank. Thus, any potential conflicts of interest were avoided by the directorâs or executiveâs bank.
Auditors would send around a form to be signed annually as to what amount was borrowed during the year (personal loans and mortgages), what amount was outstanding at year end and, importantly, if there were any outstandings during the year. Of the four major banks that I have worked for (Citicorp/Citibank, Security Pacific,National Australia Bank and Bank of Ireland), all had one thing in common with regard to personal borrowings â they were thoroughly evaluated and closely monitored. The philosophy in all four banks was that employees were committed full time to the bank and outside interests, investments or other directorships had to be approved by a designated director or a subcommittee of the board. The problem with lax governance is that it turns the potential problem of conflict of interest into an actual problem. The failure to disclose conflicts of interest to boards should be treated as a criminal offence.
The Large Hadron Collider (LHC) is a gigantic scientific instrument near Geneva, where it spans the border between Switzerland and France about 100 metres underground. It is a particle accelerator used by physicists to study the smallest known particles â the fundamental building blocks of all things. Physicists use the LHC to recreate the conditions they believe were present just after the Big Bang, by colliding two beams head-on at a high energy level. This massive project began in 1998. The first planned particle collisions took place on 30 March 2010. A brave new world of physics is in the process of emerging, as new knowledge of particle physics from the new accelerator will contribute to our understanding of the workings of the universe.
In 1986 the London financial markets had their own âBig Bangâ, the phrase used for the deregulation of the London financial markets and the market activity expected toensue. Deregulation included the abolition of fixed commission charges and a change from open outcry to electronic screen-based trading. The measures were taken by Thatcherâs Government in order to make London financial institutions competitive with those in New York and around the world.
As a result of deregulation, for the first time in the history of the UK financial markets, brokers and market makers emerged and most were absorbed by major US commercial banks that wished to extend their financial footprint internationally in the securities business. The first acquisition was by Security Pacific, a California-based bank later taken over by Bank of America. In April 1986, as a director of Security Pacific Ltd, I had signed an agreement to take an 83 per cent share in Hoare Govett Ltd, the third largest stockbroker in the UK. Over six months later we bought a small market maker (jobber) in London.
A new company was formed called Security Pacific Hoare Govett (Holdings) Ltd. This institution was the first of a new breed of international capital market operation in London, which was created a mere twelve months previously. By the time the integration had occurred between the debt activities of Security Pacific Ltd in the euro-markets with the gilts and equity businesses of the established blue blood firm of Hoare Govett Ltd, the new entity had a total staff count in excess of 3,700. These were exciting times in the markets and it was not long before new premises were occupied in the European headquarters of the group in Broadgate, London.
The aspiration of the group was to achieve a prominent position in the global international capital markets. The skill base and experience of those in charge were extensive. However,
Auditors would send around a form to be signed annually as to what amount was borrowed during the year (personal loans and mortgages), what amount was outstanding at year end and, importantly, if there were any outstandings during the year. Of the four major banks that I have worked for (Citicorp/Citibank, Security Pacific,National Australia Bank and Bank of Ireland), all had one thing in common with regard to personal borrowings â they were thoroughly evaluated and closely monitored. The philosophy in all four banks was that employees were committed full time to the bank and outside interests, investments or other directorships had to be approved by a designated director or a subcommittee of the board. The problem with lax governance is that it turns the potential problem of conflict of interest into an actual problem. The failure to disclose conflicts of interest to boards should be treated as a criminal offence.
The Large Hadron Collider (LHC) is a gigantic scientific instrument near Geneva, where it spans the border between Switzerland and France about 100 metres underground. It is a particle accelerator used by physicists to study the smallest known particles â the fundamental building blocks of all things. Physicists use the LHC to recreate the conditions they believe were present just after the Big Bang, by colliding two beams head-on at a high energy level. This massive project began in 1998. The first planned particle collisions took place on 30 March 2010. A brave new world of physics is in the process of emerging, as new knowledge of particle physics from the new accelerator will contribute to our understanding of the workings of the universe.
In 1986 the London financial markets had their own âBig Bangâ, the phrase used for the deregulation of the London financial markets and the market activity expected toensue. Deregulation included the abolition of fixed commission charges and a change from open outcry to electronic screen-based trading. The measures were taken by Thatcherâs Government in order to make London financial institutions competitive with those in New York and around the world.
As a result of deregulation, for the first time in the history of the UK financial markets, brokers and market makers emerged and most were absorbed by major US commercial banks that wished to extend their financial footprint internationally in the securities business. The first acquisition was by Security Pacific, a California-based bank later taken over by Bank of America. In April 1986, as a director of Security Pacific Ltd, I had signed an agreement to take an 83 per cent share in Hoare Govett Ltd, the third largest stockbroker in the UK. Over six months later we bought a small market maker (jobber) in London.
A new company was formed called Security Pacific Hoare Govett (Holdings) Ltd. This institution was the first of a new breed of international capital market operation in London, which was created a mere twelve months previously. By the time the integration had occurred between the debt activities of Security Pacific Ltd in the euro-markets with the gilts and equity businesses of the established blue blood firm of Hoare Govett Ltd, the new entity had a total staff count in excess of 3,700. These were exciting times in the markets and it was not long before new premises were occupied in the European headquarters of the group in Broadgate, London.
The aspiration of the group was to achieve a prominent position in the global international capital markets. The skill base and experience of those in charge were extensive. However,
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