Friday, October 31, 2008

Producer capture: Latest

One of the most awful things that can happen in any organisation is that it can be captured by a producer interest. This is why trade unions have to be weak and management has to be hierarchical.

"The London-based bank is seeking to raise 6.5 billion pounds from private sources to meet new requirements for cash reserves in the U.K. without tapping the government's 37 billion-pound bailout fund. Rivals Royal Bank of Scotland Plc, Lloyds TSB Group Plc and HBOS Plc all plan to sell shares underwritten by the state, which may take stakes in the banks and will restrict executive pay and dividend payouts."

(From here. Emphasis mine. Er... do we have to call the managers at Barclays 'comrade' now?)

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