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| Jim Slater and the warning from the 1970s that we ignored | |
| (about 1 hour later) | |
| Jim Slater has died aged 88. | Jim Slater has died aged 88. |
| The name probably means nothing to anyone under the age of 50 but in the 1970's Jim Slater was a truly famous businessman. | The name probably means nothing to anyone under the age of 50 but in the 1970's Jim Slater was a truly famous businessman. |
| A chartered accountant and stock market investor he built up an empire by buying small companies and selling off parts of their business for more than he paid for the whole company. | A chartered accountant and stock market investor he built up an empire by buying small companies and selling off parts of their business for more than he paid for the whole company. |
| His business Slater Walker was a stockmarket darling, but it - and he - came a cropper in spectacular style. | His business Slater Walker was a stockmarket darling, but it - and he - came a cropper in spectacular style. |
| His asset-stripping empire expanded at a furious rate and then moved into banking and financial services, specialising in funding takeovers, mergers and property deals, but just like the rapid growth of the financial sector in the early years of this century, it was too good to last | His asset-stripping empire expanded at a furious rate and then moved into banking and financial services, specialising in funding takeovers, mergers and property deals, but just like the rapid growth of the financial sector in the early years of this century, it was too good to last |
| As the stock market and property values faltered in the early 70's Slater Walker's business model began to fall apart. | As the stock market and property values faltered in the early 70's Slater Walker's business model began to fall apart. |
| It had lent huge amounts of money to companies that were now struggling and Slater Walker turned from a model of the new bright business future; to a failed bank with remarkable speed. | It had lent huge amounts of money to companies that were now struggling and Slater Walker turned from a model of the new bright business future; to a failed bank with remarkable speed. |
| The Bank of England had to step in and bail it out with £110m, a huge sum at the time, causing many to complain that while British manufacturing companies were allowed to go bust with hardly a murmur there was endless tax payers money available to save a very badly run and obviously under regulated bank. | The Bank of England had to step in and bail it out with £110m, a huge sum at the time, causing many to complain that while British manufacturing companies were allowed to go bust with hardly a murmur there was endless tax payers money available to save a very badly run and obviously under regulated bank. |
| It was a lesson that it took far less than 40 years to forget and, by 2008, badly run and regulated banks were once again lending far too much to businesses they didn't really understand. | It was a lesson that it took far less than 40 years to forget and, by 2008, badly run and regulated banks were once again lending far too much to businesses they didn't really understand. |
| The bailout this time has cost many, many billions and caused the toughest economic downturn in living memory - and probably far longer. | The bailout this time has cost many, many billions and caused the toughest economic downturn in living memory - and probably far longer. |
| Jim Slater never returned to the forefront of British business but he became a wealthy man once again through property deals and stock market investments. | Jim Slater never returned to the forefront of British business but he became a wealthy man once again through property deals and stock market investments. |
| He also - somewhat improbably - wrote children's books and, using his more obvious experience, a column on investing for The Daily Telegraph. | He also - somewhat improbably - wrote children's books and, using his more obvious experience, a column on investing for The Daily Telegraph. |