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The appointment of Mr. Horta-Osorio is much larger that simply "new bloke takes the Bank". It gives a clear overview what he believes the future of banking in the United Kingdom and especially banks has a significant involvement.

The first message is "stick to your knitting. When George Osborne first said that Mr. Horta-Osorio was the name of a certain number of weeks, it has developed a number of conditions that must be met.The Treasury would never vulgar and to call them "requests" and of course, is UK Financial Investments Limited manages 41pc game Lloyd Government ' S not the chancelier.Juste call "suggestions".

The first "suggestion" - and most important - is that Mr. Horta-Osorio remuneration package must longer received Mr. and should also be closely modelled on the remuneration of Stephen Hester at the Royal Bank of Scotland. Frankly, it is the only model that the Treasury Board and sources told me that numbers in the pay packages correspond "to a certain number of decimal places".

The second "suggestion" was part of the price paid should be dependent on level of loans to small businesses who realizes the Lloyd ' S.An idea which came into direct by the Chancellor itself.Furthermore, it was clear that more than half of the salary of Mr. Horta-Osorio package should be via long terme.Cela incentive plan be attach new CEO pay to its ability to deliver the santé.Les coarse Bank LTIPs will be acquired only when the shares of the Bank during strikes 114 p. At this stage, Mr. Osborne reminded his colleagues concerned by the tag "overpaid bankers", that the public is going to be sitting on a paper profit of ￡ structured for its
the Bank Bailout.

Also important for Mr. Osborne is Mr. Horta-Osario skills to run a relatively simple retail operation. To understand the attitude of the Portuguese brochure high risk and what he believes makes banks it is useful to return to the evidence that Mr. Horta-Osario gave to the Commission of the Treasury Board last year.

A key is associated with "dynamic provisioning", the method used by the Bank of Spain, whereby the banks increase capital buffers during the good times in preparation for the wrong item. Not Mr. Horta-Osario exaggerated Gordon Brown pride "nor the boom and bankruptcy"-instead, it might still be a crisis in the corner so better prepare for it.

"I think that the Spain Bank was very cautious in this", said Mr. Horta-Osario."It was very rare at the time." Which allowed the Spanish banks have a substantial amount of counter-cyclical provisions."In the case of Santander he represents about 2pc as counter-cyclical asset, which is of ￡ 6bn.

It is, of course, music to the ears of Mr. Osborne.Le Government wants that both partly publicly owned banks - Lloyds and, to a large extent, RBS - stick to what they know, rebuild their balance sheets and leave the taxpayer smiling.No behaviour to fed powered by debt, please.

Mr. Horta-Osario is an ambitious and, for a leader, a young homme.Certains suggested that his appointment might be a signal of the Treasury Board that banks will essentially remain unchanged regardless of the conclusions of the banking commission of the gouvernement.Sans no doubt, Mr. Horta-Osario would not have work to do its own bank dismembered under him?The sources of the Treasury Board insist that this is not the case, and that no warranty on the future of the Lloyd's was sought or given their word to say.

On the broader question whether universal banks, providing functions for sale at retail and investment should be broken (the debate "too big failure"), Mr. Horta has shown itself something of a politician.Reply to the Committee on the issue was beautifully Delphi.

"I believe that diversification to increase your safety, but it increases your complexity, to make a compromise between the largest but more complex and more petits.Plus small is not a solution either as you saw in Northern Rock and Bradford & Bingley.".I am sure that Mr. Horta-Osario is with Mr. Daniels in his distaste for the argument of "break-up banks".but since his new role is as politician, businessman, as there probably is say so too publicly.

A deafening r. ?EPO silence.

"Rolls Royce refused to comment on" is now a well-worn phrase dangerously week dernière.Les British manufacturing success should beware that silence on important security issues is not a .c communication strategy ' is a suicide note.

Last week, value of the action of the company began tumbling after one of its engines on a Qantas Airbus A380 detonated in b.c airs' was jeudi.Le Friday, another problem with engine from Rolls-Royce - a different mark mounted on a Qantas Boeing 747 - forced the pilot to make an emergency landing at Singapore airport.

Qantas CEO what alan Joyce focused question at the door of Rolls-Royce, stating the cause of these events is "sensitive" and likely to be in the design of engines.

Then comes the news today that Pratt & Whitney, American Society of jet engine, has filed a lawsuit against allegations of infringement of a brevet.Il Rolls-Royce is a counter punch in a spat long legal race between the two companies.

We have heard so far Rolls-Royce silence.Leur argument is that it is "too soon" to make any substantive comments on the question of the battle of Pratt moteurs.Sur & Whitney, Bloomberg reported yesterday: "a Rolls-Royce spokesman declined to comment on".Dur won reputation can be destroyed very quickly, as its frais.Espérons Sir John Rose, Rolls - Royce CEO outgoing BP does not a lack of openness to muddy the end of its very good story this British leader company.

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