The Metropolis

To understand St. Paul's actions, look at who runs their foundation

Josh Hall | Thursday 27 October, 2011 15:35

St Paul’s over-dramatic media strategy has failed quite comprehensively. The closure of the cathedral, citing the all-encompassing ghoul elf and safety, always seemed questionable. Even the briefest of visits to the camp demonstrates that there is no tangible risk to visitors. Indeed, demonstrators have gone to extraordinary lengths to try to appease the church, and to come to a mutually acceptable arrangement. Many would suggest that they have gone too far. It’s not an occupation if you have permission to be there, after all.

Giles Fraser’s resignation seems to demonstrate the breadth of the split between the canon and the Chapter – and, perhaps, the increasing frustration felt by the trustees.

In order to understand that frustration one need only look at the apparently inextricable links between St Paul’s and the demonstrators’ targets.

Sir John Stuttard, the chairman of the St Paul’s Cathedral Foundation, used to head up the Corporation of London – amongst the most arcane and undemocratic institutions in the country, and one whose primary purpose is to represent the interests of the financial industry.

Trustees of the Foundation include a serving deputy president of the CBI, an organisation dedicated to whittling away the meagre rights enjoyed by workers, an ex-chief risk director of Lloyds who oversaw the explosion of PPI mis-selling, and an erstwhile chair of the British Bankers’ Association’s Business Banking Committee. Camels and eyes of needles spring rather quickly to mind.

The implication of Fraser’s resignation is that the eviction of the camp is now imminent. As Fraser clearly understands, any such eviction will involve police violence on a scale that is likely to be far more significant than that seen during the first day of the occupation. The canon is right to distance himself from an organisation that is willing to use force to break up an assembly calling for an end to exploitation. Sadly, though, it is unlikely to prevent heads meeting concrete at the hands of the police, on the steps of one of Europe’s most iconic places of worship.

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Eurozone deal a write-off
This morning’s headlines seem to suggest that Europe has been saved. Last night’s “marathon” meeting of eurozone leaders eventually produced an agreement that has, if you believe the press releases, fixed Greece’s debt crisis, protected the banks, and brought Italy back from the brink of collapse.

Clearly this is nonsense. The deal might well buy the eurozone a few more weeks, but this crisis is far from solved. Greece is firmly on the path to ‘failed state’ status, while Italy’s shock-and-awe austerity measures will soon cause re-enactments of 15th October, when Rome was aflame.

One element of the agreement nicely sums up the absurdity of the financial system. Those who have lent money to Greece have been asked to “voluntarily” write off 50 per cent of their loans – but apparently this doesn’t constitute a default. Europe has been eager to avoid a technical default, because any such ‘credit event’ would trigger credit default swaps – essentially insurance policies against nonpayment. The worry is that this trigger would cause further instability, as CDS sellers would be forced to pay out on those policies, potentially placing yet more financial institutions in jeopardy. As there is no central record of who’s sold CDSs to who, no one is entirely sure how big the risk posed by a default would be.

In solidarity with Greece’s creditors, I intend to take out a £1000 loan this afternoon, then call my bank tomorrow and insist that they voluntarily agree to only take back half. If it’s good enough for eurozone leaders, it’s good enough for me.

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