Bad Banks Bank on Rubbish Regulators

Eventually the rather crooked antics of banks come to light. Sometimes it takes fifty or sixty years, sometimes longer for criminality or bad behaviour to become widely known. However, if the bad behaviour comes to light within a few years something can be done to compensate the victims of such behaviour. So it is with the latest news about Barclays.
It seems that when Barclays went through their fund raising in 2008 (which prevented them from meeting the same fate as RBS and Lloyds) they obtained investment from investors based in Qatar and Abu Dhabi but forgot to disclose all the details of these transactions and in particular what Barclays paid to intermediaries and others in connection with this fund raising.
The rules require full disclosure of these matters so that other investors can know exactly the terms upon which money was raised and so can, of course, the shareholders who own the bank. The regulator is investigating this forgetfulness. No doubt some wrists will be lightly slapped.
Meanwhile Mr Del Missier, the director of Barclays who gave instructions to return false information about LIBOR and who resigned when the news came out, has apparently been rewarded with a £8.75 million pay off as compensation for having to resign when it was discovered he did a crooked thing.
No doubt other wrong doing will come out in the wash, but Barclays has provided for having to compensate its commercial customers for having sold them inappropriate financial products. The provision that it has made is £450 million. I rather suspect that customers who have been defrauded by being sold these inappropriate financial products will have to work a great deal harder and fight longer than Mr Del Missier had to fight for his compensation.
I hope that every business that has been falsely sold these products will fight to recover compensation, even if it means taking Barclays to Court. Many small businesses will be reluctant to sue their bankers, particularly if that banker is continuing to provide finance which the small business needs to survive.
Nevertheless it should be done and can be done in ways that do not prejudice existing finance arrangements. The compensation that they will receive if they have bought mis sold products will not usually be as much as that of Mr Del Missier for having fiddled LIBOR, but none the less will make a difference

5 Responses

  1. WC Fields wrote and starred in a film called “Never give a sucker an even break”. I believe it is compulsory viewing in Barclays’ sales training.

    Whilst I have no love of banks’ sales methods and the LIBOR issue seems to be institutional global fraud I do think anyone who was miss sold PPI ought to think long and hard about their own gullibility and expectation that they will be protected from pushy sales techniques.

    PPI was clearly an insurance to make repayments on the loan they were taking out in the event of unemployment or sickness causing unemployment and resulting inability to repay.

    If the person taking out the insurance was not an employee what did they expect?

    For me the so called PPI scandal smacks of ‘nanny state’

    “Caveat emptor”

  2. What does one expect if the current paradigm is ruled and lied to by our own MSM who are currently not as independent as they used to be, owned by the same cabankers and their freinds and tell us nothing of what is really going on.
    The recent mass riots in Spain have never been aired, why, we are only being told what they want us to know, period.

    As the distraction called the olympics rumbles on the fourth US carrier fleet and many more mine sweepers are making their way to the gulf and we worry about the banks who are ultimately going to fund the coming war, like the Roman model, the missing monies are soon to go out with a bang for greater profits, to be counted in peoples lives, worth billions to this unsanity.

    Private versus public for gain has only ever had one end result, War, war against those who wilfully fund it by taking the easy option and the cheap deal.

    In a way those doing this deserve what they dish out, but when a public is being lied to by the private and the articifers what chance does anyone have.

  3. Rob, I thought the whole point was that no one lied. That would be obvious misrepresentation. I was on the end of Barclays hard “sell” for PPI and the sales lady never lied to me. She just hinting that I might not get the loan or the rate might be higher. I suppose that might be duress.
    Davy, I do fear what is happening in the Gulf and Iran. USA seems to be making a massive build up which is hardly being reported here.

  4. What about HSBC bank being fined half a billion pounds, for dodgy practices. Ask anyone who is attached to the anti money laundering unit, and they might tel you that it was a lack of control in this area that gave rise to the HSBC fine.
    But we wont see it physically published anywhere or in our Godlike Production of a mainstream media. In my opinion its the regulating body actually getting its payoff, for keeping quiet, and allowing the practice to continue, which it is.

    And calling it a fine. Everyones happy, and we keep on getting screwed. It is a magic roundabout of hidden control by only a few at the top, the rest being the surpluses to their requirements.

    The reality scenario is, the so called money doesn’t really exist, and not worth the paper its not printed upon, its all soon to be based in the cloud technology taking ever increasing momentunm, projected to double from 91 billion to 200 bilion by 2016.

    If this electronic batton upon ones labour takes control of the global labour market, the answers my freinds will be litteraly blowing in the wind and at the touch of a single button your history.

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