Today it has been announced that Lloyds TSB has disposed of its investment in F1 team Marrussia. For those not overly familiar in motor racing, Morussia cars are the one’s that regularly get in the way of all the other drivers and always finish last. Since the team was formed in 2010 they have yet to win a single point in the annual 18 race series. In other words they shouldn’t really be on the track at all.
So what on earth was Lloyds bank doing when it invested (share capital and £38m in loans) in this pathetic little bunch of no hopers? What due diligence was carried out by those famous “underwriters” who regularly deny financial aid to many hardworking and genuine businesses? What was it about the Marrussia’s business model that gave any indication that Lloyds would make a return on its investment? Talk about double standards.
Sounds to me as some vain and deluded people high up in the Lloyds empire fancied rubbing shoulders with the likes of Ferrari, Maclaren, Red Bull and Mercedes. What good did this do for Lloyds customers and shareholders? Not a lot I suspect. Have those vain officials and the Lloyds marketing team retained their jobs? – probably and I suspect that they will not be held to account either. We have here yet another tale of wasted effort and wasted money at the expense of decent hard working business people.
In an era of cash being starved to the thousands of entrepreneurs that struggle to create jobs and wealth, it is stories like these that bring discredit to a once respected profession – bit like being a politician you might then say!