Category Archives: Lord Blackwell

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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HBOS Reading – slow progress

We spent 4 years being defrauded by HBOS employees and associates and a further 10 years trying to expose what the Bank did to our and others’ businesses. For the first three of the ten years it was pretty much the case no one wanted to know and many people, including HBOS executives, were keen to portray my husband Paul and I either as nut cases (what do you mean bankers have committed fraud?) or as whinging business owners who didn’t want to repay their loans. Of course they also repeatedly put us through eviction hearings in their attempts to silence us but that didn’t work out either.

Which is why we have spent years gathering indisputable evidence of the fraud. As a consequence of a collective refusal by bankers and the authorities to believe what we were saying, even when we produced the evidence to support our allegations including in the many Court hearings, we are very aware who knew what and who was complicit in a massive cover up to hide the fraud, a cover up that goes all the way to the top of the Bank.

Nevertheless we did eventually, with the help of many other victims and with the hard work of Thames Valley Police, see bankers and their chums arrested, prosecuted and jailed. That process took over six years from the start of the police investigation. It wouldn’t have taken that long had the Bank been as co-operative as they like to say they were.

Despite the best efforts of many for it not to happen, Lynden Scourfield and Mark Dobson, both senior HBOS bankers, and David Mills, owner of Quayside Corporate Services and his team (including his wife), have gone to jail for a total of 47 years between them. So it is fair to say we and others have been vindicated and finally, albeit kicking and screaming, Lloyds Banking Group did agree to compensate all those defrauded.

It’s now five months since the criminal trial finished and eleven months since Lynden Scourfield (and therefore the Bank) pleaded guilty to various fraudulent scenarios. Despite statements, press releases and comments from the CEO of Lloyds Banking Group and despite a letter to Paul and I from Lord Blackwell saying he hoped that how the Bank would deal with this would restore trust in the Bank, only one person (according to the Bank) has been compensated and a further six (according to the Bank) have received offers.

I have no idea who these people are? No one I have spoken to – I’ve been speaking to victims of HBOS Reading since mid-2007 and the list of names is quite comprehensive – none of them have been compensated.

A representative of the Bank has been quoted in various newspapers saying the Bank are disappointed the compensation process is taking so long because they had a deadline of 30th June 2017. The Bank say the cause of the delay is because victims want more time to present their information. Or to put it another way, the problem is the victims!!!

Victims I have spoken to are also disappointed. They are disappointed the Bank’s chosen method of resolution is via a ‘review’ scheme that seems to be remarkably similar to the failed IRHP scheme or RBS GRG failed compensation scheme. The person running the Lloyds Banking Group ‘independent’ review is Professor Griggs, who I don’t doubt is an intelligent and honourable man. However, he is also someone who has done consultancy work for Lloyds Banking Group and he has been a director of a company where one of the main shareholders was connected to David Mills of Quayside Corporate Services, who was sent to jail for 15 years for his role in the fraud and corruption.

Then there is the way the review is being run. A member of SME Alliance who has met with Professor Griggs, has told us (and we are grateful for the information):

  • Neither the Bank nor Professor Griggs will volunteer any information about the methodology behind the review. Representatives of the Bank have said they cannot comment because Professor Griggs devised the methodology. Professor Griggs has said he cannot give any comment or information because the Bank devised the methodology.
  • A victim who chooses to enter the review process can either fill in the questionnaire Professor Griggs has prepared or they can send their information in an alternative format. Once the information has been received, it will be assessed by a panel and they will make a non-negotiable offer in approximately four weeks. Victims will not know who is on the panel and if they don’t find the offer satisfactory, they can of course choose to litigate (as if the majority of the victims can afford to litigate!).
  • The Bank will pay reasonable legal costs as part of the review but that is limited to a payment for fees totalling 20 hours. I can’t speak for other victims but having met many of them and researched the circumstances behind their cases, I’m not sure it’s fair or reasonable to suggest any victim can condense 10, 12, 14 years of their lives into a 20 hour explanation that will allow their advisers or their legal representatives to present a fully comprehensive presentation of their case.

I’m not sure if the Bank consider they should make additional payments for forensic accountants. I do think they should cover this cost because, let’s face it, some people may find it difficult to calculate losses going back more than 10 years. Additionally, I wonder how many hours the Bank’s lawyers have spent on each victim’s case? I’m guessing it’s far more than 20 hours per case, which hardly seems equitable. For example, Paul and I are not in the review but Professor Griggs does seem to know a lot about our case and it would take far more than 20 hours to go through the copious correspondence between us and HBOS/LBG/ Dentons/Walker Morris and others over the last 10 years. And I wonder what the hourly rate is for the Bank’s lawyers? I know how much one day of fees for Denton Wilde Sapte (now Dentons) costs because I apparently paid a fortune for a senior solicitor representing the Bank’s Board, to attend 6 of our 22 eviction hearings. Will the Bank pay such exorbitant fees to the victim’s advisers? I think not and I am now aware the Bank are challenging the adviser’s fees.

I wonder what will happen if the Bank, having dragged this whole sorry affair out for so long, decide they won’t pay the costs for the victim’s advisers? In theory either the victims themselves will have to pay (so goodbye to the recent ex-gratia payments) or the advisers will just have to stop working.

Conclusion (of the review). Professor Griggs, who may be a very nice man, is not the obvious choice as an ‘independent reviewer” as he has worked for the Bank and had a connection with David Mills through a Company of which he was an Officer. And let’s not forget any money Mills invested in shares or any shares he received as remuneration, came from tainted money or proceeds of crime.

There is absolutely no transparency regarding the review’s methodology – you cannot know how the Professor or anyone else plans to assess your life. If you do enter the review you will not know who the faceless panel are who assess your compensation but you do know their word is final – there is no appeal, debate or discussion. Take it – or leave it and find mega bucks to take the Bank to Court.

Paul and I are not part of the review but I don’t think we are the two people mentioned in the press last week because those people are going down the litigation route. As I know victims who are going down that route and as we are also not in the review, I think someone in the Bank’s press office was slightly confused when they said only two people weren’t participating in the review. Not least because I know of others who, like us, have agreed with the Bank we do not have to take part in it.

Then there’s the number of victims. I’ve been looking at the details of our investigation, which was by no means comprehensive but I don’t understand where the figure of 67 comes from? I can only assume the list doesn’t include shareholders or creditors. I would have thought HMRC would have complained bitterly about that as they are a multiple creditor – not to mention many local Councils.

The biggest disappointment for me (other than the long drawn out time scales, the lack of transparency and the bizarre pretence victims would find the review process acceptable) is the fact this whole situation has been premised on a lie.

I’m not going to go into detail on why I know this is a fact and a huge problem. However, I would just point out to Lloyds Banking Group that, had they done what Lord Blackwell told Paul and I the Bank would do and if they had swiftly, appropriately and generously compensated the victims (Lord B didn’t use the word generously but I’m throwing it into the mix because I believe that’s what he meant), there would have been no delay in compensation and there would not have been endless media articles about Lloyds Banking Group’s extremely disappointing conduct and lack of integrity.

Sorting out this shameful episode was/is not rocket science. All the victims have advisers or legal representation or can get it (there’s no shortage of lawyers offering to help victims). If the Bank had put forward 11 of their best advisers and given them 6 cases each and if the Bank’s advisers had liaised directly with the victim’s representatives, I’m guessing the whole process would have been over and done within a matter of 6 to 10 weeks. I fail to understand why that option wasn’t considered? Why does it have to be so tortuous?

To be clear Lord Blackwell, Mr Horta-Osorio and Mr Colombas, what the victims want is their lives back or as much as we can get back. That won’t happen until they have compensation and closure. I’m guessing the way things are going, the Bank’s major shareholders would also like to see some closure on HBOS Reading before more damaging information about Lloyds is exposed in the press.

It is possible much of what is happening now is designed to wear victims down so that if and when offers of compensation come, the victims will accept anything because they are just tired of fighting. That and the fact many victims are no longer spring chickens and don’t have the time for another prolonged battle. Worse still – some have cancer or other serious conditions.

Of course I can’t prove that theory (it’s not as easy as proving the fraud) but 10 years of dealing with the senior management of Lloyds Banking Group including Sir Win Bischoff, Eric Daniels, Harry Baines, Philip Grant, Antonio Horta-Osorio, Juan Colombas and, more recently, Lord Blackwell, has not instilled any confidence and even if I would like to believe what Lord Blackwell wrote in his letter, I am now struggling.

Where are we now? I have no idea. I’m not actually sure the Bank’s senior management knows but they probably do and this is all by design. Hopefully we will all know a bit more soon but and in the meantime, 30th June 2017 has come and gone and I can confirm the victims are far more disappointed than the Bank or its representatives.

Personally I am disappointed Lord Blackwell has either been insincere in his letter to Paul and I or, less likely, those in the Bank dealing with this matter are not inclined to listen to the Chairman.

 

Nikki Turner                                                                                                                10th July 2017