Category Archives: GRG

The Beneficial Lies – Who Did They Really Benefit? #banks #bankers #HBOS #Lloyds

I should be used to offensive or thoughtless language from bankers and bonkers behaviour by their PR teams but I was genuinely shocked this morning at various articles in the press today.

Top of the list are the two articles in the Times where the CEO of Lloyds Banking Group, Antonio Horta-Osorio (AH-O) gives chapter and verse on an incredibly stressful period of his life as Lloyds boss. Knowing a lot about stress and how debilitating it is, I fully understand that it doesn’t matter who you are or what your personal circumstances are – inside your own bubble, you are still having a crisis.

However, the subject of people getting stressed because of banks is such a sensitive one, given how many thousands of bank clients are stressed to the point of being suicidal, I wonder why on earth the PR department of Lloyds Banking Group would make the Banks CEO such an easy and obvious target for outrage?

I imagine being the CEO of a major Bank is a very stressful job – which is why they are paid mega bucks. But there are huge differences between being stressed because of a well-paid job which, if you really can’t cope, you can resign from and being stressed because a Bank has destroyed your life, your business, your future, your reputation and, in some cases, your sanity – and you can’t resign from this situation – or check in to the Priory – or retire and live on a pension which, unfortunately for you, you no longer have because and unlike Mr AH-O, you’ve been asset stripped of everything.

There is no comparison between the stress Mr AH-O has suffered and the stress so many SME owners (and their family, staff and shareholders) have suffered. Therefore, while I would never suggest the stress Mr AH-O suffered was of no consequence or that mental illness isn’t a very serious issue that should be given a better platform, his two articles are unbelievably insensitive and offensive to the many who are still in a very dark place through no fault of their own and, in some cases, because of Lloyds Banking Group.

In the same way I have always been very grateful to many journalists who have helped expose the Reading fraud (Ian Fraser, Tom Harper, Andy Verity, James Hurley, Siobhan Kennedy and many others), I am also very grateful to Jonathan Ford, City Editor of the FT for his excellent article about HBOS Reading which has coincided with the Mr AH-O articles in the Times. The online article came out on Thursday and the six-page hard copy article came out in the FT today (7th). Comparing the two articles, there’s a very stark example of the inequality the Country is suffering. Suffering for Mr AH-O meant he was put off his tennis game, he didn’t enjoy his family holiday in Indonesia and he suffered a bad bought of insomnia. Speaking as a victim of HBOS Reading, I can confirm my own version of stress was years of insomnia, no holidays and 22 horrendously stressful eviction hearings. I did consider suicide but only in a wishful thinking sort of way as I had two teenage daughters to think of and a very strong husband who has pulled us all through these terrible years.

I realise none of what I (or many others) went through alters how Mr AH-O was feeling back in 2011 and I genuinely hope he is fully recovered. All the same, if I was him I would sack his PR team because they made him a sitting duck and will, I think, cause him more stress.

I would imagine one of the most stressful things about Mr AH-O’s job is knowing the truth about the Bank and managing that truth. The other disturbing articles I’ve read today – or indeed in the last few days – are about how much truth has been buried for the benefit of the public. An article in The Times yesterday reported how the Bank of England was economical with the truth during the financial crisis. Andy Haldane, the BoE chief economist at the time said:

“It is not always and everywhere the case that greater openness and transparency is a good thing. And that’s certainly true in my world.

“Had we been fully open and fully transparent about what was going on during the financial crisis, it would, let me tell you, have been a lot, lot worse. That would have been [like] shouting ‘fire’ in the theatre.

Mr Haldane is right about one thing, the crisis in 2008 was considerably worse than the public was allowed to know. I’m sure everyone at the BoE was trying to juggle so many flaming swords, they all wished they could book into the Priory. Trouble is, years later and as the real truth comes out, many people are wondering if the lies told (and that’s what they were) were for the benefit of the Country or told in order to cover up the fact the whole Country had been collectively mugged by the Banks? The fire in Mr Haldane’s theatre could and probably was full of bankers and what the BoE did was bring in the Fire Brigade – but was it for the public benefit? If it was, how comes the whole Country has been crippled by austerity so the NHS is on its knees, the police can’t even afford to investigate the epidemic of financial crime our banks still persist in using as every day conduct, young people can’t afford University fees or housing and hundreds of families are relying on food banks? Is that how we benefited?

In the same way Lloyds Banking Group has been economical with the truth of what it knew about HBOS Reading, Ross McEwan has been economical with the truth about RBS GRG division, the BoE, FSA, FCA, FRC, PRA have been economical with the truth about  almost everything to do with the Banks and their auditors – I fail to see how this has been beneficial to the Country? Maybe it would have been had the BoE and the regulator used the financial crash as a lesson learned and made sure banks really did clean up their acts? But they didn’t so we can expect a new financial melt down any time from now.

All we have years later is a lot of stressed people – bankers, bank customers, bank victims – and a struggling economy. So who has benefited from all these beneficial lies? And how much longer will the lies or spin of the truth continue? Clearly it’s in full flow today and my guess is Antonio Horta-Osorio is still stressed and, needless to say, so am I as too are so many victims of HBOS Reading, RBS/GRG, Lloyds BSU and other banks BSUs. In fact, it wouldn’t surprise me if stress levels in this country are at an all time high.

 

 

 

 

 

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“Ill Founded and Misconceived” versus 47 Years In jail. Updated #HBOS Reading

I am adding this update to the blog I wrote last February and just after Lynden Scourfield and five others were sent to jail. That was over six months ago.

I was fairly optimistic throughout March and April that the Bank were going to do the right thing and swiftly even although I should have realised at our meeting with the Bank in March, the quest for justice and compensation from the Bank was going to be a long haul.  At that meeting the Bank’s representative expected us (Paul and I) to accept the statement “it is a fact that prior to the trial the Bank had no evidence of criminality.” He said this (and repeated it several times) to the people who have been sending evidence of criminality to the senior management of LBG and their lawyers since the merger with HBOS happened. So the statement was clearly a blatant example of “false truth” or whatever the latest fashionable definition is for “a lie” and it was never going to wash with us. You can’t rewrite history just the same as you can’t lie to yourself even if your bosses can insist you lie to others.

The latest hiccups include: the Bank are not (contrary to their reports to the media) prepared to pay the ‘reasonable’ costs for the victims lawyers/advisers unless they give the Bank chapter and verse on what they are doing for their clients. As if??? As if the advisers will tell the Bank the private and confidential details of the work they’re doing with the victims. Then, if the Bank’s faceless panel make an unacceptable offer of compensation and the victim has to litigate, the bank already have all their information supplied by the advisers. Do the Banks lawyers really think we are all that stupid? And of course the more obvious point – if the bank won’t pay the lawyers/advisers for the victims and the victims can’t pay them, the victims could end up with no legal advice vs the Banks magic circle lawyers.

Another hiccup: some victims who didn’t have dealings directly with Scourfield of Dobson but were in any event destroyed by their lieutenants,  acting on Scourfield /Dobson’s orders, have been told by the Bank they are not considered as victims. The criteria is you have to have dealt directly with Scourfield, Dobson or Quayside. But believe me, some of those working for Scourfield really enjoyed their jobs and were every bit as ruthless and criminal as he was – but they didn’t get arrested. Maybe they will one day but in the mean time I hope the Bank stop the absurd pretence that victims of Scourfield/Dobson teams did not suffer.

Some might say optimism is an ill advised trait in this day and age.  Nevertheless I still think Lloyds will ultimately do the right thing – the question is when? They didn’t meet their target of 30th June to compensate the victims and I wonder if we or the media should have asked Mr Horta Osorio whether he actually meant the deadline of 30th June was June 2017 or 2018? But they will have to do the right thing sooner or later because the alternative would cast serious doubt on whether the Bank’s Chairman and CEO are ‘fit and proper people’ to be running a Bank.

At the end of the day, the Bank’s lawyers can plot all they like to delay or decrease the compensation thus increasing their own remuneration. But the blame for prolonging the misery of people who have already suffered unnecessarily for so many years (it was unnecessary because both HBOS and LBG were fully aware of the criminality years ago) will not be laid at the door of the lawyers –  the blame will go to Lord Blackwell and Antonio Horta-Osorio.  I hope their lawyers are not trying to persuade them that won’t happen because that would be another false truth and potentially a very costly one.

24th July 2017

 

What a week!

As many people reading this will know, on Thursday 2nd February the Judge in the HBOS Reading trial sentenced the five delusional Defendants who pleaded not guilty and the one Defendant who did plead guilty, to a total of 47 years in jail. I was in Court for some of the proceedings and I know many people who couldn’t attend will want to know how it went.

Paul and I didn’t get to Court until about 11.45. Partly because we had the BBC at our house by 6.30am to do Breakfast TV, which was quite an odd experience because we generally get interviewed by people who know a lot about the HBOS Reading fraud. So I kind of felt we and Steff McGovern were talking about different stories and I hope we have a chance to go back and explain it to Steff in more detail so we’re on the same page!

By the time we got to Court it was packed. So packed all you could do was stand by the door at the back of the Court. A lot of press were there as well as a lot of the victims and they were doing the mitigation pleas when we arrived. I went in and listened for 20 minutes and then had to leave. I had to leave because one Defendant’s QC was talking about the hardship it would cause his Client’s family should he be incarcerated! Another pointed out his client was over 60 and in ill health!!!

I always think anger is a dish served silently and after reflection but I wasn’t sure how much longer I could stay silent or reflective in light of these comments. The families of scores of people including mine, have been devastated for years because of these people. Many of the victims have been serving a prison sentence for years and so have their children. We’ve had businesses trashed, no livelihood, no way forward because this has taken so long to reach a criminal conviction and we’ve been living on the breadline. On top of that our reputations, our credit ratings and our dignity has been smashed (yes Nigel, I pinched that from your excellent piece on BBC News at 10!).

Meanwhile, some of the people in the dock have been living like kings and indulging in every possible luxury (not always the luxuries that are to everyone’s taste) on the back of what they stole from SMEs. I say ‘some people’ because there were various degrees of ability or desire to indulge and these have been reflected in the Judge’s excellent summing up and sentencing.

On the subject of not being sent down because someone is 60 and in ill health – I am now 61, my husband is now 65 and we would consider our health to have been destroyed except for the fact other victims have fared far worse – at least five victims are dead!

I decided not to listen any more and I joined Paul in the corridor. I’ve done my best to keep Paul out of the Court room since September 2016. As many of the SME Alliance members will know, he has a photographic memory and I believe he would have been severely agitated to hear some of the evidence from both sides of the case.

We weren’t sure if the sentences would actually happen in the afternoon but fortunately they did. Again I could only squeeze into the back of the room because it was overcrowded. It was also incredibly hot and I began to wonder if people might start to feint from the heat and stuffiness – and the tension.

All through this trial it has been incredibly difficult to hear what is being said and Thursday last week was no different. People coughing, blowing their noses, turning pages of note pads (I was horribly guilty of that), people shuffling in their chairs and the Judge talking very quietly because of appalling acoustics – it’s been a nightmare. But everyone was doing their best to be quiet and hear what the Judge was saying. I don’t have to repeat what he said because it is documented, has been repeatedly reported on and is on the SME Alliance Public Interest page. But you had to be there or maybe you had to attend the entire trial, to get the impact of the Judge’s speech.

More than the sentences the Defendants’ got, I was grateful for that speech. He really got it – he really knew who these people were. The greedy ones, the stupid ones and the evil ones. Judge Beddoe knew exactly who was who in this trial and what their role was or what their importance was. This was so important. A Judge, any Judge, has to remain impartial throughout a trial and although all the way through the trial Judge Beddoe repeatedly picked up on things others in the Court missed, he was always impartial. But clearly he knew who he was dealing with and his speech before sentencing made that very clear. I and others have noted throughout the trial, Judge Beddoe is an exceptionally intelligent man and we were lucky he took this case. I am pretty sure he, like Paul, has a photographic memory – thank God.

Even in the middle of the chaos all around and with people cheering in the Court at the result, I genuinely felt for the first time that all the hard work Paul and I have put into this for 10 years, has been worth it. Not because these Defendants who, let’s face it, are either damaged, delusional or sad people, have been sent down for so long – in lots of ways I think losing their assets, their reputations and their livelihoods (like their victims) would have been almost as damaging as prison – but because I can now start to believe after all this time, perhaps our justice system can work.

I know all the victims of HBOS Reading will be grateful to the Judge, the Jury (they were brilliant), Brian O’Neil QC (Brilliant) with his team and Thames Valley Police (especially Mick Murphy) and, as you can imagine, it was a fairly emotional moment when the Judge read out 15 years for Mills, 11 years 3 months for Scourfield, 10 years for Bancroft, 4 years 6 months for Dobson and 3 years 6 months for Mrs Mills and Cartwright. I imagine it was even more emotional for them.

It would be wrong to focus on the downside after such a result but sadly there is one. We, the victims, won a battle last Thursday, definitely the biggest one we’ve fought so far – keeping that trial on track and getting the result (Paul and I have had to win 22 court battles over the last ten years to keep our house). But we haven’t won the war. HBOS have known about this fraud since 2006. Lloyds TSB have known about it since at least 2007 while Lloyds Banking Group (LBG) have known about it and certainly at a very high level, after the merger with HBOS in 2009. Peter Cummings, Andy Hornby, Lord Stevenson, Sir Victor Blank, Eric Daniels, Sir Win Bischoff and Antonio Horta Osorio. They have persecuted us and other victims for years in the knowledge every allegation we have made was correct. Why? How? How could this have happened? And even now when six people have been sent to jail for over 47 years, LBG are still putting out bland obfuscation as soundbites instead of doing the right thing. What will the latest Chairman of Lloyds Banking Group, Lord Blackwell, do now?

What will Andrew Bailey, the CEO of the FCA, do now?

HBOS could have resolved this years ago – so could LBG. It would have cost peanuts compared to what it will cost after the criminal trial. There must be a reason the Banks didn’t do the right thing? Is all this denial just hubris? Or is this because the management feel obliged to continue with their denials in order to stop an even bigger scandal coming out?

I’ve called this blog “Ill-founded and Misconceived” because that’s what the Deputy Chairman of Denton Wilde Sapte said about our irrefutable evidence back in 2008. He wrote this in a letter to us on behalf of the Board of HBOS and after HBOS had done various investigations establishing the facts as documented in the criminal proceedings. I think the ex Board members may well regret leaving the letter writing to Mr McAlpine.

One last thing – much as I think he was always fighting a losing battle and he lost, I was very impressed by Mills’ Barrister Kieran Vaughn QC. So that’s two names for the record – Brian O’Neill QC and Kieran Vaughn QC – just saying.

#RBS Redress Scheme- Offensive and Ridiculous

I never like to rush letters. They need to be well thought out, written, considered, edited, considered, edited again and then sent. News is so fast these days you could write a letter today and by tomorrow everything could change and your letter could be out of date and pointless. So I’m glad SME Alliance didn’t send the letter we wrote to Ross McEwan at RBS a few days ago because it would have been absolutely pointless.

The basis of our letter was in these two paragraphs:

As we understand it, the majority of businesses entitled to redress are already in administration or liquidation. As such, the business owners who have been mistreated or suffered loss will have no locus to request redress or compensation and only the administrators or liquidators can make any claim on behalf of the insolvent businesses. Therefore any repayment or award will end up paying the fees of the Insolvency practitioners or with the creditors of those businesses – of which your Bank is likely to be the major creditor.

If the above scenario is the reality of your proposed scheme it would be a highly cynical house keeping exercise and of little or no assistance to the business owners who have been so poorly treated. Aside from the fact £400M seems a totally inadequate figure for the serious damage caused to thousands of small businesses, we are concerned that, as in the case of the IRHP redress scheme, this scheme will fail to acknowledge or address the real issues – that in many instances your employees, presumably as a matter of policy, have behaved dishonestly to your customers and that is the prime reason for so many insolvencies.

Apparently that scenario is exactly what will happen with the scheme. The thousands of SMEs who have been placed in an insolvent position because of RBS GRG will have absolutely no right to claim redress.

It seemed illogical to me and others in SME Alliance that anyone would be quite that blatantly offensive to society. After all, SMEs represent over 90% of private business and employ millions of people. So when you take out 16,000 SMEs, you cause literally thousands of people to lose their jobs. And when people lose their jobs, it follows they can’t pay their mortgage so they lose their homes.

Just hold that thought for a moment. Just imagine you have done nothing wrong, a Bank has destabilised your business and taken your assets and to finish you off and so that you are so traumatised you can’t fight back, they take your family home. You and your children must pack up and go……. where? And why?

I keep playing this video clip because I keep hoping someone senior in RBS will watch this video of Nigel Henderson’s “Who Amongst You” speech at the Cambridge International Symposium On Economic Crime last September  and say “Oh my God, why on earth did we do this to this man and his family?” No such luck: http://www.smealliance.org/blog/who-among-you-extract-from-nigel-hendersons-powerful-speech

The conduct of RBS GRG has no doubt had a huge effect on society – the same society that bailed it out for billions of pounds.

I’m sure many SMEs read the announcement that RBS would be giving firms redress and thought their nightmare was over because the whole RBS GRG scam was exposed. But it seems that is not the case. The Bank appointed insolvency practitioners will do very well out of this deal and the Bank, as a major creditor to the companies it pulled down will be paying much of the £400M allotted back to themselves as a major creditor. Even if every penny of the proposed £400M really went to the people who most deserved it, that would work out at a maximum of £33,000 – that’s a couple of days wages to some senior bankers.

The fact remains – RBS was run so disastrously it ended up with billions of pounds of debt and had the public, via the Government, not bailed it out it would have gone to the wall. This is the Bank that felt it could run thousands of SMEs better than their owners. It was always obvious that couldn’t happen and I think some would suggest the GRG department of RBS could only run its own business and any business it was involved with straight into a wall – a brick wall. All the same we bailed it out and continued to pay it’s bosses millions of pounds to fail with vigour.

The Bank’s way of thanking its major shareholder since 2008 is to carry on with business as usual, destroying thousands of SMEs and, when it was finally exposed as an unethical and immoral organisation, it’s answer has been to come up with this cynical plan which will leave most of its victims in the same position.

While RBS are not the only Bank to take such a cynical approach to the people that saved it, it is perhaps the most disappointing. Certainly SME Alliance is disappointed any Bank would be quite so cavalier in its destruction of people’s lives but we are also very disappointed the so called ‘regulator’ of the banking sector would allow this to happen and condone this plan which is no more than a diabolical bit of house keeping by RBS.

If you own an SME that was destroyed by RBS GRG I would suggest you think carefully before joining any scheme proposed by RBS. Not every cloud has a silver lining and not every person has a moral streak. It seems this scheme is offensive and ridiculous.