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Where were the shareholders?

Who’s to blame for the destruction of bank shareholder equity?

Those nasty bankers, with their eye-watering bonus plans?

The regulators, who didn’t spot the bubble when it was blocking out the whole sky?

Those self-serving politicians who oversee the regulators and maintain the health of the economic system that the bankers feed in?

What about the shareholders? The executive of any body corporate is answerable to the shareholders on most matters, especially shareholder value.

So, where were shareholders when shareholders’ equity was being destroyed? The truth is that most shareholders are too small to have a voice. But we do have guardian angels looking over our investments for us. Our plan sponsors. Our fund managers.

We pay them. So what did they do to preserve our capital, growth and income?

They will no doubt argue that they were entitled to rely on the regulators to ensure that our investments were protected.

That’s a bit like leaving your car unlocked outside your house, with the keys in the ignition and trusting that the police will stop it from being stolen.

Hugh Cumberland

Product Strategy Director, BT GFS

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