As ancient Greeks knew, hubris precedes nemesis… and Standard Chartered’s comeuppance arrived within a week.
Here are some smug quotes from interim results last Wednesday: “Recently, issues have surfaced around governance. At Standard Chartered, it is not just about what we do, but how we do it.” How long ago it all seems now; then, the bank was keen to point out it is “not at all complacent about the external challenges”. So much so it said it twice: “It may seem boring in contrast to what is going on elsewhere, but we see virtue in being boring.” Yesterday, shares plummeted as it denied accusations in America that it had schemed with the Iranian government and left “the US financial system vulnerable to terrorists”.
* Much schadenfreude at the predicament Financial Services Authority chairman, Lord Turner, finds himself in in the wake of the allegations facing Standard Chartered. Turner, pictured, was a non-executive director of the bank from 2006 to 2008 when its Iranian dealings are said to have occurred. That casts a shadow over his bid to be Bank of England Governor. He has given a series of high-profile speeches in recent months, attacking the world of high finance for its poor investment ethos and lax approach to regulation. Alas, the biter has been bit.
* Things must be busy in the Turner household: Adair’s other half is Orna Ní Chionna. Among her many boardroom jobs is senior independent non-executive director of HMV, which has just parted ways with its chief executive and finance director in the space of a couple of days.
* A timely grilling in the latest Board Intelligence newsletter for Clare Spottiswoode, the serial non-executive director, best known for running gas regulator Ofgas. “Information is the life-blood of the boardroom,” she says in her interview. “Boards need to be shown the things that matter in a format they can digest. If you can’t see the wood from the trees it’s hard to be effective.” So what happened at G4S, on whose board Spottiswoode sits, when it bungled security recruitment for the Olympics? Perhaps G4S should have taken on another idea she discusses: every board needs a crisis response plan. She adds: “Practising when times are good for when times are bad is a hugely valuable exercise. No board should think it won’t happen to them!” Too true, Clare.
