Category Archives: Ed Miliband

How much more contempt must society swallow from banks?

Interesting few weeks – the election of course with the Conservatives winning a majority – who saw that one coming? And, in the process, the Tories appear to have demolished most of the other parties, not to mention some key names in politics. Of course the SNP helped the Tories enormously – the idea of Labour with the SNP running Westminster had a devastating effect. It’s almost as if we collectively had visions of bearded, kilted Scotsmen rampaging all over England intent on rape and pillage, when we still haven’t recovered from the suited and booted Scotsmen who ran the Government and some of the big banks – so that didn’t help poor Ed. And this just goes to show that while we pat ourselves on the back for being a liberal, accommodating, multi cultural society, the truth is we’re every bit as Nationalistic as Germany, France or Italy. And why not? What’s wrong with being fiercely protective of your Country? And while, in this instance, we conveniently forgot Scotland is part of Britain, I think many of us did reasonably feel that is a tenuous situation which a second referendum could change.

Anyway the Conservatives won and that was certainly a relief to big business who were apparently sure Ed Miliband was anti business. But I wonder if anyone in politics could make a difference to the whims and pleasures of major corporations now – and especially our financial sector?

One thing that has been made abundantly clear (again) in the last week with a US Judge handing out multi billion pounds fines to our big banks, is how much more powerful banks are than Governments. If I was trying to explain to an alien what’s been going on over the last twenty years in the ‘Incredible saga between banks and society’ I would say:

“From the late 90’s, bankers decided they could make more money and bigger bonuses by forgoing traditional banking and behaving recklessly, unethically and with gay, greedy abandon until this conduct nearly brought even the wealthiest of nations to their knees by 2008. So Governments bailed the banks out with the monies they collect in taxes to pay for essential services, even although this caused mass austerity for millions of ordinary people. But we never really got to the bottom of the reckless behaviour and we certainly didn’t blame anyone. So bankers realised very quickly they could carry on with that kind of behaviour and nothing much would happen.

Pardon? Yes we do have laws on this planet and yes bankers did break them but the leaders running the various countries on behalf of the people, decided it wouldn’t be a good idea to apply the laws to the bankers? Why – well apparently it’s complicated (or so we’re told) and, aside from anything else, we, the public, would have felt loath to trust a financial sector where some of the bosses turned out to be convicted felons.

Yes I know some of them may well be ‘criminals in pinstripe’ but that’s not the point. You can’t just go around calling people crooks if our justice system hasn’t confirmed it – so the trick is, don’t prosecute people and then no one can say they’ve done anything criminal.

What happened next? Well obviously, realising they had immunity from the law and could therefore do what the f*ck they liked with no personal consequence, the bankers dreamt up even more blatantly criminal scams to make money because – what did they have to lose? And when they (banks – not bankers) were found guilty of crimes, either their share holders or the tax payer (again) paid massive fines on behalf of the banks to the organisations set up to make sure banks did behave well and didn’t break any laws in the first place.

No I don’t know why these organisations didn’t police the banks properly. But I suppose if they had, they wouldn’t have been able to demand billions of pounds in fines at a later date.

What happened to the bosses running the banks? Well obviously they got huge bonuses even although they were overseeing criminal operations. And let’s be logical – the banks may have been fined billions of pounds but that’s a fraction of the profit they made while acting illegally. So you could say these bosses were doing a good job in terms of making money – which is all banks care about.

Yes, you’ve summed that up beautifully – the people bailed the banks out when they lost everyone’s money; then the banks carried on robbing the countries blind while paying their executives millions of pounds and finally; the public paid the fines for their criminal conduct. It’s a total Catch 22 as far as society is concerned.

I realise it makes no sense to you – it makes no sense to most people on the planet. Don’t we have a say in all this you ask? Well yes we do. We vote for the kind of leadership we think will be best for society and who will stop this kind of thing. So why doesn’t it stop? I don’t know. And yes, I’d say society is deeply offended our elected representatives have given bankers immunity from the laws of the land. Many of us are trying to do something about it. I have written many a letter to various leaders asking for a logical explanation to what’s going on

I haven’t had any replies – no doubt our leaders are very busy trying to work out how to balance the scales of a disappointed and furious populace on the one hand and the all powerful and Government empowered banks on the other hand. It can’t be easy forecasting which camp will do the most damage if not appeased. Especially if there’s not much you can do about the situation.

And no, I don’t know how much more contempt society can swallow before it all turns very nasty.

What, you’re off to find a more logical, ethical planet for your holiday? I don’t blame you. At least you managed to catch the Eurovision Song Contest while you were here. Do you know, that used to be considered one of the most bizarre, hilarious and illogical things on the planet? Now it seems like a welcome break in an even more bizarre reality.”


So 5000 SMEs supported the Tories but who will support 5M SMEs?

For some reason – and I can’t for the life of me understand what the reason is – in the recent election debates, none of the political parties have raised the issues of banks (you know the ones that caused mass austerity) bank misconduct (PPI, IRHP, EFG’s, Libor rigging, GRG, HBOS Reading, money laundering for drug cartels etc. etc) or the related issues of law and order and a two tier justice system. You know, the one whereby the majority of crimes committed by anyone in our financial sector results in no one going to jail and shareholders paying hefty fines for the “get out of jail free cards”.

Apparently none of this conduct and none of these issues are relevant to the election and we don’t need to know what the parties intend to do about them – if anything?

It’s been suggested (and probably rightly) that politicians feel such a minority of the population has been directly affected by such issues, it’s not worth making a big deal about them – not really a vote winner.

I just want explain why I think that is a total misconception. It affects millions.

On Monday the Telegraph ran an article about the 5000 SME owners who have signed Baroness Brady’s letter and pledged their support to the Conservative party. Personally I don’t think that was a very wise PR tactic because the obvious question is, who do the other 4,995,000 support? However the point I want to make is – according to the article 5000 SMEs represents 100,000 jobs.

According to the FCA, more than 60,000 SMEs were mis sold IRHP (Interest rate swaps):

So by the logic of Baroness Brady’s letter, that would represent 1,200,000 jobs.

Recently, Clive May, a builder and founder member of SME Alliance, successfully got an admission from RBS that they had miss-sold EFG loans and were now investigating 1800 of them:

That’s another another 36,000 jobs and of course it’s the tip of the iceberg because a lot of banks were ‘mis-selling’ EFGs and, before that, SFLGs. According to Government statistics 1,740,736 EFG loans were drawn down between November 2008 and November 2013. Obviously, or should I say hopefully, not all of them were miss sold. But even working on the calculation only 10% were (and I think I’m being generous there) that’s still 174,073. Assuming (again hopefully) only 10% of that number resulted in SMEs being fatally damaged, that’s still 17,407 SMEs which, according to yesterdays statistics, equals approx. 348,000 jobs.

You see where this is going? Add to those figures the victims of asset stripping etc etc and you won’t get much change from the fact at least 100,000 SMEs who employed approximately 2,000,000 people, have been affected by bank misconduct. And that’s a conservative estimate. If you then add all the SMEs who were creditors of the failed businesses and who then had their own difficulties, the picture is very bleak. When I was investigating the HBOS Reading debacle, I started keeping a chart of the creditors affected and I gave up when I reached 20,000 – most of whom were SMEs.

All of the above wouldn’t be so devastating but for the other key issue being ignored in the election debate – justice and law and order. If SMEs could rely on the regulators, we may not feel so anxious to know what the political parties are planning to do about access to justice. But we can’t. I’m not going into detail here – but I can assure you that in the majority of cases, we can’t.

Neither can most of us afford civil litigation – and especially now when court fees have gone up to £10,000 while legal aid is all but non existent for SMEs. And, leaving aside court fees, in my view many SMEs are being seen as little more than cash cows by some legal firms who clearly think their remuneration should be on a par with bankers – regardless of whether or not they get results for their clients. And some, having milked the cow, drop the client the moment the udders run dry.

Where banks have committed criminal offences (and there have been many) we wouldn’t be so worried if we could report these crimes to the police and know justice would prevail. Again, in most cases that’s not an option and, on the odd occasion it does happen, you need to be prepared to wait years for any outcome. Generally speaking criminal prosecutions against bankers remain as rare as rocking horse sh*t and we’ve seen over and over again how banks deal with their crimes – they get shareholders to pay whacking great big fines and that’s the end of it.

Unbelievably our justice system and Governments (Labour and then the Coalition) seems to turn a blind eye to the fact so many crimes are going unpunished. Unbelievably, we, the public, have come to accept that status quo. There is now indisputable evidence bankers are not subject to the same laws as ordinary people. Additionally, SMEs know even when they can prove (and even in a Court) that a bank destroyed businesses, it doesn’t necessarily mean anything will be done about it: Seems some banks are as cavalier in their view of a Judges power, as they are in politicians power.

I know I’ve waited 8 years for justice and it’s still not on the horizon. I know many members of SME Alliance are in the same boat. And those bankers who are deliberately perverting the course of justice by denying or burying criminality they are fully cognisant of, are still being given telephone number bonuses to continue this charade. Yes, Dave, Ed, Nick, we know all of that.


But it’s never too late for someone to tell us. Who knows, maybe at the 11th hour one of the political parties will pull the cat out of the bag and show some support for the thousands of SMEs that have been ravaged by banks and who are really struggling to get justice.

And that could be a big vote winner.

BTW Before some annoying troll posts on twitter that neither I nor SME Alliance speak for or represent the views of all SMEs – I totally agree. That’s hardly the issue – this blog is about which politicians will speak out for SMEs – and will they do it before the election?

The Big Pink Elephants in the 2015 Election debate – ‘Law and Order’ – Justice.

smeallianceposterYesterday we had a call from a farmer in Scotland. Like many of the farmers we know, he took out what was supposed to be a bridging loan with UK Acorn Finance and now, with the claimed debt doubling in 4 years, he’s about to be evicted. In this particular instance he is being asked to pay back almost twice what he borrowed and, having made a substantial offer to ameliorate the situation, he and his wife are still being evicted. Sadly in this instance, I’m not sure what my husband Paul can do to help. Over the years and on top of our own 22 repossession hearings, Paul has become a bit of an expert at staving off evictions. But the call we had yesterday was to help stop an eviction due to take place on Tuesday. And to make matters worse, it’s a Bank Holiday in Scotland tomorrow, so there’s no time to do anything.

That was the third call for help we’ve had in five days. And that’s over and above the cases Paul is working on anyway to keep people in their homes or farms and to help them get compensation from various bank related scenarios that have devastated their lives.

Add that to the number of cases the SME Alliance adviser panel, Jon Welsby, Andy Keats, Ray Baker, Mel Loades and Steve Middleton are working on – or the cases Bully Banks are working on as well as the many other support groups and you start to get the picture. Whether because of IRHP, EFG, so called business support units like GRG or HBOS Reading, or out and out asset and land theft by dodgy sub-prime lenders working with the big banks, which is happening all over the Country, the fact is economic crime has reached epidemic proportions.

And the reason for this? A complete break down in law and order.

If it wasn’t so tragic, you’d have to laugh. For example, consider the news last week that an intruder alert from premises in Hatton Garden – diamond and gold centre of London – went off but the police decided to take absolutely no notice of it! I know the police have a severe aversion to economic crime but burglary? Really? They don’t go after burglars now?

According to the blog in the following link, the police HAVE to investigate all crimes and can’t pick and choose but it also confirms they often do their best not to investigate crimes.

In my experience that’s very true and a fraud investigator from my local police force once told me the police couldn’t investigate my allegations of fraud against a major bank because the bank in question assured them there was no fraud. A different police force did investigate this fraud albeit three years later and they have since called it “the biggest bank fraud in British history.” Mind you, whether the people charged ever actually stand trial is a debatable point – not that the law should be debatable. But that’s another story.

The point of this blog is – over and above the bizarre case of police ignoring a robbery in the diamond district of Britain, white collar crime continues to cause mass austerity and destroy thousands of SMEs in this Country, but not one person in the recent #leadersdebate, mentioned ‘Law & Order’, ‘Justice’, ‘White Collar Crime’, ‘Bankers’, ‘Bank Reform’, ‘Access To Justice’ or ‘SMEs’. Except for the Welsh candidate, who did give small businesses in Wales a brief mention.

So, how could anyone have a serious debate and ignore the big pink elephants in the Country? How can SMEs on the one hand be called the back bone of the Country and on the other hand, just before an election, the Government puts Court costs up so the inequitable situation we already have, has now got even worse? At a time when so many SMEs in the UK are so desperate for a more level playing field to protect themselves against errant banks with deep pockets and huge legal teams, Chris Grayling and his team have decided to dig a bloody great big hole in the field! And in doing so he has confirmed, yet again, in so many cases involving banks or the financial sector, justice is only available to the highest bidder. And will any of the other parties redress this situation? Well who knows. Nothing in the debate gave us any clues?

Yesterday I filled in a survey I had been sent by a university on the subject of the 2015 Election and the leaders’ debate. It asked me, amongst other things, if the debate had helped me make a more informed choice about who to vote for? NO. It absolutely didn’t help me make an informed choice because many of the key issues ruining this Country, were simply ignored. Yes the future of the NHS is hugely important. Yes immigration is very important – although I’m not sure who will do the many low paid but very essential jobs in the NHS if we adopt Nigel Farage’s policies on immigration. But surely Justice and Law and Order, which includes stopping bankers raping the Country, should have been on the agenda?

The fact it wasn’t really does make you wonder who is running the Country? Who decided what questions would be asked in the leaders’ debate? More importantly, who decided what questions would be excluded? Did someone run the list of questions past Ross McEwan, and Antonio Horta Osorio?

And, in a democratic country, how can things like this happen:

“A bankrupt Lanarkshire businessman fears that a seven-year-long legal battle with banking giant RBS will continue despite a landmark court ruling in his favour.

Property developer Derek Carlyle’s dispute with RBS began in 2008 when the bank pulled out of a loan leaving his business – Carlyco Ltd – “in ruins”.
However, last month the legal process took a turn to Mr Carlyle’s advantage when the UK Supreme Court ruled that a judge’s 2010 decision – that the bank had broken their promise to him over the loan – had been the right one.
Mr Carlyle said this week: “The fair thing for the bank to do now would be to fully accept the decision of the UK Supreme Court, admit they were wrong and settle the matter of damages.
“However, that does not appear to be the RBS way in my experience, and I therefore expect to have to take them back to court to force them to pay up.”

Even when the Supreme Court rules a Bank, RBS, is in the wrong, it makes no difference. It’s as if the RBS executives think they’re in an episode of Kevin and Perry. “Yeh, so the Judge said we’re wrong. And? He is so unfair.”

What amazes me as much as anything, is the fact more MPs are not up in arms at the way some banks and bankers literally stick two fingers up to them and therefore to the democratic process. Occasionally some do show frustration and only recently Margaret Hodge on the Audit Committee was very obviously outraged with the answers she was getting from the “yes but my offshore account is all perfectly above board” and the “I can only look at the information I’m given at my £10k a day job” HSBC bosses. Similarly I’ve seen Andrew Tyrie at the TSC look extremely ‘miffed’ when talking to bankers. But what good does it do? Mr Tyrie may make the bankers squirm a bit but their seven figure salaries more than make up for a bit of ritual humiliation. And it’s not as if anyone has the power to stop what they’re doing. Or stop paying them handsomely to do more of the same. It seems whatever these top bankers do, good, bad, unethical or blatantly criminal, they face no penalty. How does that work? And what about party leaders? Have they considered the possibility that public perception is getting to the point where we are wondering if bankers have more power than elected representatives? And that’s across the board because Labour under both Blair and Brown were pretty keen on giving Knighthoods to the very bankers who brought the economy to its knees – and the coalition has shown itself to be equally fond of bankers.

So, going back to the forthcoming election, I’d be really grateful if any of the political parties would make it clear: where they stand on law and order; which party will focus on a more just society for all; which one of them will really cause serious reform in our major banks; which one of them will give the police and the SFO the resources they need to do their job properly; which of them will recognise the minimal access to justice SMEs have when trying to defend themselves against totally out of control rogue banks and; which party will realise how important SMEs are to the economy and give them the support they need? In short – who will lay these big pink elephants to rest?

As my good friend Nick Gould says – just asking.

Sadly I don’t think the answers, should anyone provide them, will do much good to the farmer and his family in Scotland who, it seems almost certain, will be evicted on Tuesday. Unless of course UK Acorn Finance decide they will, for once, do the right thing and accept the incredibly generous offer that’s been made to them? I hope so.

If – and I know it’s a big if – there is anyone reading this who could also help this family, please e-mail so I can pass on the details.