There is good reason to examine the breakdown in the relationship between the Cabinet and the Bank of England around the 22nd to the 28th Sept 2022. There is a lot of it about and most between the President and the Fed in the USA. Thanks to Toby Nangle for this brilliant analysis of how political personality expressed itself in a policy against all reason, needing to be saved by the Bank of England.

You can read how Truss is now explaining her September 2022 as Bank of England sabotage, this link is free (until it runs out).

The “other thing” in question is “sabotage. Truss is still telling those who listen that her policies were sabotaged by the Bank of England.

In forensic detail, Toby Nangle and the FT chart team show that this was the exact opposite of what happened. The market threw bonds out of the window, their values went down , their yields went up and pensions – borrowing gilts to be perceived as funded, were left having to sell relatively worthless Government paper. Liz is now telling those who listen

The paper she is referring to her is the Bank of England’s LASH paper that the FT reviewed last year. To be clear, it does not say that two-thirds of the spike in gilt yields was down to the Bank’s failure to regulate the pensions market. But it does attribute two-thirds of the spike to forced-selling by pension funds.

This morning (at 10 am not 10.30 am) William McGrath and Con Keating will look at this issue not through the lens of a former prime minister , the  Bank of England but through the eyes of two pension funds – one of which did rather better than another.

The very different outcomes are very largely attributable to the way that pension fund comply with the advice given them. The vast majority of our huge private defined benefit pension plans followed a route laid out for them by actuaries and endorsed by a Pension Regulator that did not see September 2022 happening.

The FT are very right to keep writing about what happened and to not allow the Bank of England to be blamed for what happened. What happened is stated by Nangle in his final paragraph.

Cutting out senior civil servants who might be able to provide advice that could’ve avoided the crisis, as Truss and Kwarteng did, looks to the casual observer like purposeful recklessness.

It is vital that we do not forget the lessons of September 2022 and blame the Bank of England for Liz Truss’ folly.

It is important that we do not allow the losses of pension scheme to first happen and then be blamed by the executives of the companies that have sponsored them these past 50 years.

In the spring and summer of 2025 the combination of “wrinklies” explained (as they did in 2022) . They will speak with us on a Tuesday morning, making sure that a voice is heard about the destructive power massing against pension schemes today.

Join Con Keating and William McGrath this morning at 10 am on this link

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