UK – First we had the shock of TESCO, one of the largest companies in the United Kingdom, announcing that they had overestimated their profits by £250 million.
Since then there has been a steady drip drip of shocking news. OK most of it passes right over most peoples heads. But for the world of finance each drip is an earthquake.
The news today that apparently no one has been in charge of the accounts for the last five months! Smacks of pure, unadulterated bull shit. A quick look at the profits since 2010 shows that they have been in decline since 2011. It looks to us like this is a deliberate attempt to hide the truth.
Which means that the management of TESCO will have been under severe pressure from the big institutional shareholders to maintain share value and shareholders dividends for a long time. In order to maintain share price they need good results.
It smells like a massive fraud has been perpetrated against the smaller shareholders by a combination of the TESCO management and the Institutional shareholders. This alone is why the Serious Fraud Office should be sending a swarm forensic accountants to examine the books with a fine tooth comb.
But as TESCO is a big donor to the Conservative party and almost certainly owns a cabinet minister and a also one in the shadow cabinet. It is unlikely that such a thing will happen unless the city demands it.