Slaughter and May are a City law firm that acted a chief advisors to the Treasury when Northern Rock was nationalised. They have billed you and I £9.4 million for their advice via the government. They weren’t the only ones though, Ernst and Young billed for £4.4 million, BDO Stoy Hayward billed for £4.5 million, and Clifford Chance a miserable £2.4 million.
Now I’m sure that the legal work involved in nationilsing a bank is fairly complicated, but the treasury spent £26.8 million on advisory fees.
Now as I recall the Northern Rock thing went through very quickly, but lets be generous and say it took a month, and that there were 100 lawyers working 12 hour days, seven days a week on it. That would still mean the government was spending £744 per lawyer per hour on ‘fees’.
Surely it can’t have been that complicated?
Can we expect Kevin Barron to raise this in the house?