Tag Archives: fraud

Shameful that building societies taken into State ownership evict tenants like worst of private sector

When because of the bankers’ crash RBS, Lloyds, Northern Rock and Bradford & Bingley went bust and were taken over by the State, one of the worst indictments of the Blair-Brown governments – copied and exacerbated further by this current Tory government – was that the losses were borne by the taxpayers, but they continued to be organised and managed as though they were still in the private sector.   That was the rule operated when RBS and Lloyds were taken over in 2008-9, at a direct hit for taxpayers in bailing them out at £68bn (let alone the subsequent hundreds of billions of taxpayers’ money disbursed on loan guarantees, special liquidity schemes and asset protection schemes).   But rather than treat them as State-purchased assets to be managed in the national interest, an artificial quango was appointed under the title of UK Financial Instruments to act instead as executors in their commercial interest until they could be returned at the earliest possible moment to the private sector.   And who did the managing of this strictly commercial transition?   Who else but members of the senior banking class who brought about the crash in the first place, plus senior mandarins from the Treasury who had failed to see the warning signs to prevent the crash from happening in the first place.
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Goldman suckers

The significant point about the fraud investigation against Goldman Sachs is not that it is taking place, but that it didn’t take place much earlier.   It has been known for years now that mortgage-backed derivatives  were often constructed in a manner that was not only highly complex, but deliberately designed to evade scrutiny and to deceive, to the benefit of the originators.   In this case a package of mortgages and other fancy financial products was deliberately manipulated to fail, thus allowing a hedge fund, Paulson & Co., with whom the US-SEC is alleging  Goldman Sachs was collborating, to make a killing by betting (taking a short position) on the collapse of the package.
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