Interesting response to my review of the Brammertz book on Finance

Dear Prabhu,

Thanks for the summary.

I sense a similar analysis to my own.

Due to lack of financial control several UK banks and the UK Treasury recently ran out of money.

The management language of control is - cash flow - gearing - solvency - lending risk etc.

The government borrowed and printed money to fill up the financial fuel tanks to get things going again.

The economists language is - business models - quantitative easing - pricing of risk etc.

The economists language is not much use if you are sitting behind the Finance Director's What he needs is reporting for control.

Unfortunately regulators in the UK have been drawn from the ranks of academic economists. They have no experience of financial reporting and control.

Why is it that FDs and auditors have not been called to account in the banking crisis?

Lastly CEOs are too often flown in from outside with no knowledge of the company concerned. And they never find out eg Lloyds and HBOS.

Very best

John Pickering Sphere: Related Content