Alastair Darling

Isle of Man faces Moody's credit rating downgrade after Alistair Darling slashes its budget

2009-10-21 23

Chancellor Alistair Darling this week cut the Isle of Man's budget by 24pc when he sharply reduced a 400-year-old customs revenue-sharing agreement.

Previously the UK gave the island an estimated £230m a year as part of the agreement, allowing the island to cut corporation tax to zero for all companies apart from financial institutions, which pay 10pc.

Thomas Amenta of Moody's said the Isle of Man's room for manoeuvre was now "substantially limited".

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Chancellor condemns bank chiefs

Posted 04/02/2009 - 02:17 by Hoping and coping

2009-02-03 16

Alistair Darling has criticised bank chiefs for failing to flag up the financial difficulties they faced at an earlier stage.

The Chancellor said some had wrongly given the impression that the problems afflicting Northern Rock were isolated and would not affect themselves.

He told the House of Lords Economic Affairs Committee there needed to be a complete change of culture in the boardroom of financial institutions in the future.

He also acknowledged there were "huge lessons" to be learned from the financial crisis in terms of the supervision and regulation of the banks.

Mr Darling told peers that financial institutions would have to stop offloading risk in the way they had and failing to ask enough questions about the liabilities they were taking on.

"That means, to my mind, the whole culture in boardrooms of financial institutions has to change," he said.

"Both executives and non-executives are not just there for the ride, to charge their fees, they are there to ask serious questions and to hold the executives to account.

"And indeed if some of these institutions had asked more questions about what was going on, perhaps we might not have got into this difficulty."

[Continues]

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