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Brown ignored warnings on toxic bank loans

A leading US hedge fund chief has accused Prime Minister Gordon Brown of ignoring warnings that toxic bank loans could lead to a global financial collapse, according to reports in the Evening Standard.

The founder and president of American hedge fund Kynikos Jim Chanos said that Brown and other G7 finance ministers were briefed more than a year before the economic crisis hit that banks were in danger.

Chanos, who made his name correctly predicting the downfall of Enron, said that Brown was told of the “canary in the coal mine” but chose to carry on regardless.

Shadow chancellor George Osborne says this is proof that Brown failed to act to protect Britain’s economy from the oncoming financial crisis.

Osborne said: “We all know Gordon Brown didn’t fix the roof when the sun was shining – and here it appears is yet another example of him getting clear advice at the time that that was a mistake.”

Chanos told a BBC Radio 4 documentary: “We were completely and officially ignored”.

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  1. Brown ignored warnings on toxic bank loans
    And just to make matters even worse, the Treasury instructed the FSA to lay off the banks, as admitted by Lord Turner to Parliament. But hang on ~ Hector Sants is adamant that the FSA is not an instrument of government. So who is and who is not telling the truth here? You can’t have the Chairman of the FSA saying one thing to Parliament and the Chief Exec saying another on national television. But this is the FSA, so maybe that’s alright after all.

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