Recent events have made times more difficult for SCF. The placing by the government of Allan Hubbard and entities associated with him into statutory management renders the task of Sandy Maier and his colleagues more difficult.
Bernard Hickey in this piece takes a relatively pessimistic view, one contary to that of many Hubard supporters.
Brian Gaynor in a recent column pointed out that just because someone gave money to charity did not absolve them form complying with the law.
Much of the furore over Hubbard, is I suspect due to the fact that he is perceived as a good person, whereas many other finance company heads are not perceived in that light. It is possible, and I have no knowledge one way or the other, that Hubbard’s ways of conducting business may have exposed him, albeit with no intent as many might undertand, whereas others despite public perceptions to the contrary will have taken steps to ensure they are legally protected.
It would appear, see Rebeccas Macfie’s latest article on Hubbard in the July 3 Listener, not online unfortunately, that part of the issue with Hubbard might be that he still believes in trust and one’s word being one’s bond. Consequently, as evinced by the support for him, he has he believes acted accordingly. Unfortunately, for Hubbard times have changed and he may be the victim of such change.
I express no opinion one way or the other. However, for their sake, I hope that the trust of Hubbard’s supporters has not been misplaced materially. Yet at the same time we need to have appropriate enforcement of legislation. That means as well that the authorities need to examine as well just what went on in other finance companies, especially if Hubbard is to be faulted for related party transactions and or faulty disclosure.