Financial disasters 3 - the banking crisis

Earlier this month, the BBC’s business correspondent, Robert Peston, revealed that the new Basel rules designed to prevent a repeat of the banking crisis have been watered down into ineffectiveness. http://www.bbc.co.uk/blogs/thereporters/robertpeston/2010/08/basel_allows_banks_to_play_the.html.

That’s a shame. In London’s Disasters, I tell the story of the crisis, and of how the bail-out of Britain’s banks had cost £850 billion by December 2009. That’s about £14,000 for every man, woman and child in the country.

I mentioned in my blog of Aug 13^th that those responsible for the South Sea Bubble in the 18^th century had their estates confiscated. (They got off lightly. One MP wanted them to be tied up in sacks and thrown into the Thames.)

No such problems for those responsible for the banking crisis. We all know the story of Sir Fred Goodwin’s pension, and of how in February 2010, RBS announced that even though it had lost £3.6 billion in 2009, it wanted to pay out £1.3 billion in bonuses. (See also my blog of Jan 20, Feb 10 13, 16, 18, 2009.)

*More coverage of the book from the Wandsworth Guardian:-http://www.yourlocalguardian.co.uk/news/local/wandsworthnews/8331276.Wandsworth_s_past_disasters_revealed/

and Docklands 24 http://www.docklands24.co.uk/content/docklands/news/story.aspx?brand=Docklands&category=news&tBrand=docklands&tCategory=znews&itemid=WeED17%20Aug%202010%2015%3A35%3A37%3A037

Black Death exhibition

An interesting little exhibition at the Wallace Collection in London. It goes by the name of Treasures of the Black Death, and features Mediaeval jewellery and coins found at Erfurt in Germany in the 1990’s and at Colmar in France in the 19th Century. They were almost certainly buried by Jewish families at the time of the Black Death.

This pestilence was perhaps the worst disaster ever to afflict humankind – killing off maybe a third of the population of Europe. In the panic, the Jews often got the blame, and there were massacres at Frankfurt, Narbonne, Carcassone, Basel, Mainz and many other places. (In a variation on this theme, the islanders of Cyprus murdered their Arab slaves instead.)

As for the places featured in the exhibition – the city council at Colmar announced on December 29, 1348 that the cantor of the Strasbourg synagogue had admitted to sending someone to poison the wells at Colmar (this was a fairly standard accusation). The townspeople then burned the Jews outside the city gates.

More than 100 Jews were massacred at Erfurt in March 1349, and the rest were driven from the town. Later the town council invited them to return, though they added that they could not guarantee their safety. However, some clearly were brave enough to come back. In 1357, they built a new synagogue and by the following century, Erfurt had one of the most important Jewish communities in Germany.

The exhibition runs until May 10.