Betfair Official Blog

Nameless and Shameless

Our City Slicker gives his verdict on the big legal battle in the City...

"Tarquin," I say, "Do be a dear and pass me the old reportus on the steel contractus bookaramus. Tarquin. Tar-queen. Tarqueee-ee-en."

He looks over. "It's not Tarquin," he says. "It's Rupert."

I affect a look of deep concern. "Not to worry," I say. He hands me a report on the new London Metal Exchange contracts in steel billet.

"Thank you would suffice," he plies.

"Cheers Tarq," I reply. "Tar."

Steel is a volatile game and that is all for the good. I thrive on the stuff. A sharp rise or fall and we - the middle men - make or lose a bundle. Steel is the second biggest industry after oil. Big business = big money. And steel is getting more expensive so easy pickings. Not so much of a trade as a sure bet. Steel will rise.

But speculation brings its own problems. And with banks playing the market, the market may play up. Take UBS, those Swiss chaps. The Germans at HSH Nordbank want to sue the UBS, it is reported in Tarquin's Guardian newspaper, as HSH Nordbank claims the Swiss mis-sold, mis-managed and mis-represented the sub-prime risk.

UBS has already posted the biggest quarterly losses in banking history. Says Bernard Blohm, of HSH Nordbank: "Our investment in the North Street programme [a package structured by UBS, sold to Landesbank Schleswig-Holstein, which became part of HSH Nordbank] was to be conservatively managed by UBS according to prudent investment objectives. We came to the realisation that the world's largest asset manager, UBS, appears to have condoned actions which benefit only itself, at the expense of its client."

And your point is what? This sounds like very good banking practice. We do well and the customers do well. Simple.

Kerching