A Tale of Two Banks: The Reality of Jonathan Sugarman vs. The Myth of George Soros

The Central Bank of Ireland, or more commonly known as, "Her Majesty's Septic Tank", suffered a banking crisis engendered by its own industry leaders and bureaucrats.

The Wikipedia entry for the Central Toilet of Ireland does it justice:

It was reported that it sought to gag one of the country’s most prominent economists from talking about the fragile state of the nation’s banks in relation the Irish branch of Northern Rock. The Central Bank deliberately "watered down" economic warnings about the property bubble in the run-up to the crash, blocked internal communication reaching board level due to the political and property interests of the Directors and "rigorously" concealed data from the relevant supervisors on the large exposures of the banks to individual developers.

If this isn't "sabotage from above", then I don't know what isn't. Then again, the US mortgage crisis was likewise engineered in such a manner, but that's another story for another time.

Modern Mythology: Soros vs the BoE's ERM

Soros' much-vaunted battle with BoE and its ERM remains the stuff of legend: the brilliant speculator (and Soros is brilliant) disciplining a stodgy, stubborn, and blithe bunch of technocrats with nothing but his Divinely-endowed genius and Heroic courage and will.

How exciting!

Modern Reality: Jonathan Sugarman vs the CBoI (CToI)

Unless you're an insider or a damp rag in polite society, you probably don't know who is Jonathan Sugarman.

That is hardly an accident.

A former Unicredit Bank Ireland executive says he has been unable to find employment since resigning from the lender in 2007 after reporting liquidity breaches at the unit that year.

“I’ve lost everything,” said Jonathan Sugarman, who worked at the Italian banking giant’s Irish unit for a period in 2007, at the launch on Friday of his eBook The Whistleblower.

Mr Sugarman has repeatedly claimed, including most recently before members of European Parliament last month, that his alerts to superiors and the Central Bank about the lender’s repeated breaches of liquidity requirements in 2007 went unheeded. He subsequently resigned in September 2007.

Men Who Fight The System Are Crushed By The System

The British Intelligence agencies remain the most potent in the world, "pound-for-pound"(pun intended & duly abused) more powerful and effective than the technology-dependent American intelligence agencies.

The conceit that HMG would leave the BoE and the destiny of the UK's economy in the hands of some eccentric speculator is so naive, it is painful.

One Made a Lion, the Other Gelded

Soros did not "break" the BoE: he was a credible front for a massive policy reversal that was risky and politically intolerable for Britain's establishment in 1992. Soros was given a "Letter of Marque" with which to extricate the UK from the ERM and spare the careers of key politicians and the reputation of the British establishment itself.

Sugarman, acting as a responsible executive, took on the comparitively pathetic CBoI (CToI), and he was reduced to penury and made a pariah.

Men Who Blackmail the BoE Are Destroyed, Not Enriched

If Soros truly threatened the BoE, he would have either been simply killed or blackmailed into desisting, as we have seen with Jonathan Sugarman's experience.

There is simply no reason for Power to compromise.