Sunday, February 3, 2013

Banks face huge compo bill after firms mis-sold financial products - Mirror Online

This may be an English article but it is happening world-wide... The way to do business nowadays presumably is to fraud your way to riches. until you are caught. The article introduction is after the quote by Business Secretary Vince Cable. Take time to read this article by clicking on the title link above the intro.

90% fraud rate ---- why does this not surprise me????  BANKS once again fraud the people they are supposed to help small - medium businesses!!!!  Is this right ? Has there in last year or two established facts that the Banks worldwide have committed: Fraud on Trusts; Fraud on Derivatives, Toxic Loans, Fraud Foreclosures, LIBOR rigging,

 If this doesn't make you angry  - then there is no hope for the WORLD. These are no longer alleged crimes.. this is fact found by City regularto r of Financial  Services Authority (read full article by clicking on link) ,

I ask you: "HOW MUCH FRAUD DOES THE WORLD HAVE TO OVERLOOK?"  I have an answer but it is one that most CEO's of the banks would not like.

WHAT is stunning to me in this report, are the words by the Secretary - who in my opinion should have power to do something! And yet look at the bolded words... eerily simllar to America's situation where the banks conducted independent foreclosure reviews and found very little fraud (sigh).
The banks were left deciding who to compensate (wonder why those with very high mortgages got a call offering modifications --- while little mortgages were left hanging out to dry?)

Business Secretary Vince Cable also lashed out at the fat cat banks.
He said: “This is an example of the little guy paying for the big banks’ wrongdoing.“Malpractices like this have no place in Britain’s business environment, which we are committed to making one of the best and fairest in the world.“I hope the banks will properly compensate small businesses that have unfairly lost money, time and energy in this regrettable episode.“The immediate priority is to ensure small businesses are not driven out of business by banks pursuing liabilities for swaps that they mis-sold.”


Mis-sold products for businesses: Banks face huge compo bill after firms mis-sold financial products - Mirror Online: "This new scandal may have already cost hundreds of thousands of jobs.

And the huge bill for the banks could eclipse the expected £15billion they are setting aside for compensation and costs over the mis-selling of payment protection insurance.

In this new outrage around 40,000 firms – many of them small businesses like fish and chip shops – were sold interest rate swaps alongside loans.

The swap is a product that is designed to guard against a big jump in interest rates.

But many businesses had no idea that there were some very costly implications if rates plunged.

When the credit crunch kicked in and interest rates fell, firms could not understand why they were suddenly being hit by huge bills from the bank.

Many desperate business owners were then told that the only way they could escape the deal was to pay fees running into hundreds of thousands of pounds – or even millions."

'via Blog this'

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