The Banker’s Exemption From the Criminal Law

It is better to use short words instead of long phrases. We should not call spades agricultural implements and we should not call fraud  serious misconduct. However, if you a fraudster operating in the banking system, organising large scale deceptions your chances of being prosecuted are so low that I do not think I can compute them.

There are so many examples of this, that I stand in pause to know where I should first begin, but I shall simply mention the sale by all the major UK banks of interest rate hedging products to small and medium sized businesses. Continue reading

Secret Swaps

Another, yes another banking scandal is emerging. After the PPI mis selling (or fraud to use a more accurate description) to individuals and after the sale of interest rate hedging products scandal to medium sized businesses scandal, it has now emerged that the banks were selling secret swaps to customers. What they did was this: they agreed fixed rate loans with customers which customers wanted to protect themselves from future interest rate rises. That is fair enough; a customer makes a decision on wanting a fixed and floating rate, and if the customer opts for a fixed rate that is what the customer expects to get, but expectation and reality are two different things in the world of banking. Continue reading