No oversized and greedy Frankenstein-corporation is in fact “too big to fail.” The sad demise of Carillion, beside being a disaster for its workers, is a perfect showcase.
The British construction giant entered the process of liquidation Monday after a last-minute attempt to keep it afloat failed. The proposed agreement, which provided for the transfer to the creditor banks of an amount of shares equivalent to the debt and thus expropriating the shareholders, was not accepted by HSBC, Barclays and Santander: The three banks wanted, in addition, the government’s cash-laden shoulder to cry on. But the government, fresh out of tears (money), said no.
Thus, under the weight of £900 million of debt and a pension fund deficit of £580 million, at least 20,000 workers throughout the U.K. are at serious risk of losing their jobs, as the company now finds itself under the watchful eye of the Financial Conduct Authority.