Thursday, 19 February 2009

The fit and proper persons test

Should the England Cricket Board have ever been doing business with Mr Allen Stanford?

BBC's Radio 4, with a bit of help from Twenty20 hindsight, think not. The BBC have a point. There always was something just a little fishy about the Texan billionaire. The ECB should have applied a "fit and proper persons test", a general sniff test, to check if this Stanford guy was someone they want to do business with.

Or should they?

The trouble with sniff tests is that it is really hard even for well intentioned, honest and experienced people to know exactly what they're sniffing. A generation ago, any sniff test run by the ECB would have failed anybody who was not white, well-bred and Oxbridge educated. Would that have been good sniffing? Or prejudice? One of the great things about the anonymity of markets is that is harder for prejudice to prevail.

There must be an intelligent middle ground somewhere between prejudice and Stanford...but its never obvious how to be both fair and prudent.
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An apology: a previous version of this post mentioned Mr Adam Sanford, a cricketer who played for the West Indies in eleven tests, instead of Mr Allen Stanford, the shady Texan financier. Apologies to Mr Adam Sanford

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