THE CHAIRMAN of private bank Arbuthnot blamed accounting rules for contributing towards offsetting profits within the business.
Describing accounting rules as operating on a "parallel universe", Arbuthnot chairman Henry Angest was unhappy that rules had seen losses from its securities business impact on gains within other parts of the bank, yet the sale of a quarter of its Secure Trust arm was not fully recognised in its P&L, reported the FT.
"These same accounting rules previously allowed failed banks to show huge imaginary profits on which excessive bonuses were paid out...I can only live in hope that we will return to a saner world where a spade is called a spade and where profits mean cash in the till," said Angest.
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