Martin Vander Weyer

UBS: the bank that lost the formula to turn Mr Hyde back into Dr Jekyll ‘Thank you, UBS,’ writes the FT columnist Martin Wolf, who as a member of the Vickers commission on banking reform was one of its strongest proponents of the ‘ring-fencing’ of retail banks to protect them from the casino follies of securities trading. There could hardly have been ‘a better illustration of the unregulatable risks to which investment banks are exposed’. Indeed, the management failure that allowed Kweku Adoboli to rack up $2.

Safer banking will mean the same rotten service at a higher price Cross-party support made the release of the Vickers report on banking reform less of an event than it might otherwise have been. Vince Cable looked almost benign on the Commons bench beside George Osborne. Ed Balls had nothing new to say. After all their lobbying beforehand, bankers got no sympathy for the £7 billion that Vickers says ring-fencing and re­capitalising their retail operations will cost, and barely bothered to protest. Ring-fencing, as I have repeatedly argued, is far from a complete defence against the full range of banking follies. But nor need it be a disaster for banks’ profitability, given the eight-year implementation timetable within which they will be able to squeeze costs to fit.

A thunderous collapse could drown out the clamour over banking reform The banking lobby doth protest too much, methinks — to misquote Hamlet’s mother — and so doth its enemies, not to mention the opponents of planning reform. In fact, there’s a whole lot of grandstanding going on in the public arena which I fear may suddenly be silenced either by a thunderous collapse of the eurozone or the giant toilet-flush that will signal the onset of renewed global recession. Or both.

Steve Jobs: the perfectionist who raised industrial design to the level of high art I’m no techie but I have long been an admirer of Steve Jobs, whose declining health has forced him to step down as chief executive of Apple, the Californian technology giant he co-founded 35 years ago. Many tributes have been paid, the Sunday Times even asking whether he is ‘the greatest businessman of all time’. That would be too big a claim: Henry Ford might feel the title is still his. In Jobs’s own field of consumer gadgetry, however, I’d say his only peers were Akio Morita and Masaru Ibuka, who founded Sony in a workshop in bombed-out Tokyo in 1946 and built a global electronics brand that, like Apple, is associated with bold innovation and engineering quality.

Why Merkel and Sarkozy cannot deflect blame onto Anglo-Saxon speculators Chemistry between the frumpy hausfrau Angela Merkel and the vain little egomaniac Nicolas Sarkozy never looks warm, but their summit in Paris on Tuesday must have been more than usually fraught. The French economy failed to grow in the second quarter, while Germany achieved just 0.1 per cent and the eurozone as a whole notched up only 0.2 per cent, the same as the UK.

The hard-working bloke in his burned-out shop is the true symbol for our times What horrors. As I write, the FTSE 100 index has dived below 5,000 for the first time since last July, the mood of the London investment community darkened by the sense that civilisation is breaking down. There’s no glimmer of goodness or optimism in the morning’s news: everything — not only the economic outlook but also human nature itself — looks nastier and more incorrigible than it did a fortnight ago. But the combination of mass criminal damage with the destruction of many months’ gains in investment values (unless you’re a gold bug or a holder of Swiss franc bonds) at least reminds us who it is that deserves a proper portion of sympathy.

The greatest nation? This debt fiasco makes Washington look like a parish council I love America, and if you look at my Wikipedia entry — which I have neither the vanity nor the knowhow to bother to edit — you might suspect that I’ve been brainwashed to say so, because I am ‘a leading figure within the British-American Project’. I am indeed active in that excellent networking organisation, which has never been anything like the sinister Reaganite propaganda vehicle that Pilgerists and Guardianistas imagine it to be. And it has given me valuable insights into the national characters of movers and shakers from both sides of the pond who form its membership. The Brits, mostly arts graduates, tend to be argumentative free-thinkers with opinions about everything.

Barely a flicker of growth, but Osborne mustfollow his instincts and stick to his guns Cut taxes now, or pile more taxes on to the bankers? Cut spending even faster to compensate for flagging tax revenues, or slow the cuts to ease the dole queues and boost confidence among consumers who still have public-sector jobs? Ban royal weddings, or at least the ones that cause the nation to stop work for a week and a half? Print more money, or tell Vince Cable to sod off and stop rocking the boat? George Osborne has a rich menu of choices as to how to respond to the news that second-quarter growth barely crawled into positive territory, at 0.2 per cent. But they’re all tough ones, and apparently he now has the Prime Minister breathing down his neck as well.

Another Murdoch lesson: when the iceberg looms, it’s too late to change course The sixth most famous Murdoch in history, after Rupert, James, Wendi and Rupert’s parents Sir Keith and Dame Elisabeth (the latter still with us at 102, and presumably wondering what the boy will get up to next) was of course William McMaster Murdoch, First Officer of the Titanic. If space permitted, I’d expatiate on how cruelly this heroic Scotsman was misrepresented in the 1997 cinema epic in which he is seen taking a bribe and shooting two passengers before turning his gun on himself.

Murdoch, Balls, Huhne and Satan: is it possible they’re all related? The debate about whether Rupert Murdoch and Satan are one and the same person has distracted attention from the worrying state of the economy. But gruesome statistics and forecasts are stacking up like the blizzard-stricken aircraft in Die Hard II, and waiting on the tarmac to greet them with a mad glint in his eye is shadow chancellor Ed Balls, the only man in Britain whose career prospects would catapult upwards out of a double-dip — and for my money, the only one who makes both Rupert and Satan look cuddly as puppies. What numbers are circling up there, or lurking down here unnoticed, while the hacking scandal fills every cranny of news space?

Pound shops and possession orders: parables from the post-recession high street One of our fanciest local shops — until it closed, it sold upmarket furnishings and children’s clothes — has its windows plastered with ‘Possession Order’ notices. Rumour says the space has been re-let to Oxfam, against which neighbouring retailers are getting up a petition because they regard charity shops as unfair competition in such a tough market. That Yorkshire parable is the story of the national high street this summer, after a particularly dismal set of retail sales figures for May. Habitat and the fashion chain Jane Norman went into administration last week. Thorntons are closing 180 chocolate shops. Mothercare is one of several other famous names with closures looming.

Why release emergency oil stocks? Because Opec never does the right thing Observers of oil politics have been wondering why the Paris-based International Energy Agency, which represents 28 member states including Britain, has suddenly decided to start releasing oil from its emergency reserves. What do they know that we don’t? This is a rare move for the IEA — the last time was after Hurricane Katrina. The amount of the release, 60 million barrels, is enough to fuel the world for about 19 hours, which sounds insignificant, but is also equivalent to 42 days of pre-war production from Libya, which is more relevant.

Tony Hayward’s making the headlines, but Rothschild’s the one they’re betting on Remember Lasse Viren, the Finnish policeman who fell over halfway through the 1972 Olympic 10,000 metres final in Munich only to rise again, sprint past the leaders, and win gold in world record time? Well, he’s got nothing on Tony Hayward, the former chief executive of BP who stumbled so woefully in his handling of last year’s Gulf of Mexico oil-spill disaster that he seemed to have been howled right out of the stadium of big-corporate life. Less than a year after that global public humiliation, Hayward is back on his feet and fronting a new venture called Vallares which has just raised £1.

Can capitalism care for the old and vulnerable? The collapse of the Southern Cross care homes group is a big story not just because 31,000 elderly residents are waiting to discover whether they still have anyone to look after them when it’s all over, but because it illuminates a pattern of financial engineering that prevailed in the boom years and could now unravel with very disruptive consequences. Southern Cross was bought in 2004 by the US private equity firm Blackstone, which tripled the number of homes, floated the company on the stock market and sold the last of its own shareholding in 2007, having made a 300 per cent return while four senior Southern Cross executives pocketed £35 million between them.

The construction industry looks perky, and this time it’s not building state-funded follies Not exactly Flaming June so far, is it? Up north, we’ve had one day of blazing sunshine — and being northerners, we complained it was too hot. Down south, you’ve had a continuous drizzle of dismal economic indicators. Inflation is up; growth forecasts have been slashed, in the IMF’s case by a whole percentage point to 1.5 per cent for 2011. Manufacturing output has fallen back for the first time in two years. New car registrations were down 1.7 per cent year on year in May and retail sales were 0.3 per cent worse than in April — when mortgage approvals were at their lowest level since 1993.

There’s always another disaster waiting to happen – so keep your eye on ETFs If we learned anything from the recent financial crisis, it is that when a thing looks too good to be true, it is. If a sector is attracting frenzied investor attention and pundits say spectacular growth must continue, it is surely heading for trouble — not next week, perhaps, but soon enough to allow a minority of sceptics to say ‘I told you so’. In markets, good ideas pursued to extremes mutate into disasters and, at any given moment, someone somewhere is concocting the next one. And so I draw your attention to Exchange Traded Funds, or ETFs.

Another rail report chugs past like an empty freight train bound for the sidings Sir Roy McNulty’s report on the state of Britain’s railways chugged by last week like one of those unmarked freight trains that sometimes pass through stations. ‘Stand well back from the platform,’ says the announcer, making us wonder whether the wagons are full of explosives. But such is the inefficiency of our rail system that they’re more likely to be being shunted empty from one siding to another — which is what will happen to McNulty’s ‘Rail Value For Money Study’ if unions and other vested interests have their way.

Another tale of the Great Seducer and my tip for the woman to succeed him When I was young I knew a man whose opening gambit with any pretty girl was, ‘Hello, shall we go straight to bed?’ He reckoned one in 20 said yes, so if he asked the question 20 times a day, he would never be lonely. All accounts of Dominique Strauss-Kahn, the IMF chief and would-be French presidential candidate who has been charged with sexually assaulting a New York hotel chambermaid, suggest a similar approach. In the late 1990s — during the tenure of ‘DSK’ as France’s minister of finance and not long after his third marriage — an attractive female journalist of my acquaintance was sent to interview him at the French embassy in London.

The latest mis-selling scandal is one more symptom of a deeper problem The payment protection insurance (PPI) scandal is, by common consensus, the worst case of financial mis-selling until the next one. These policies were foisted by banks on personal borrowers, supposedly to cover repayments if they fell ill or lost their jobs or encountered some other misfortune. But in many cases borrowers were not aware they were being charged for the cover, or were told falsely that they were obliged to buy it. If they were self-employed or too old, they would never have been able to claim on it anyway.