Tesco is in a mess. As the creative financial façade is ripped away the stock market is rightly giving the shares brutal treatment. When trust is impaired it is very difficult to restore. The company is not yet in a death spiral but experience demands we remember, "there is never only one cockroach."
I have only simple questions at this point,
- Are these fit and proper people to hold a banking licence?
- The same accountants and investment bankers who advise Tesco advise other corporates. Are these practices common?
- Will officers of the company who personally benefited from erroneous and misleading accounting be brought to account for their actions?
- Will the government seize the moment and bring a heavy hand to bear on large corporates who use their scale to exploit small suppliers; effectively making small firms borrow and use their balance sheets to part fund the larger entities operations?