Tag Archives: Bank of England

“Ill Founded and Misconceived” versus 47 Years In jail. #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 five months ago.

I was fairly optimistic throughout March and April that the Bank were going to do the right thing 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 make you lie to others.

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 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.

11th 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.

When justice is delayed too long the Devil is dancing.

It’s very hard to write a rational, unemotional blog about the state of our financial system when I’ve just been to see a friend, who is a victim of bank fraud, who has been waiting for justice for over 10 years, and who is now dying of terminal cancer. But I’m going to try because too many people now are dying without ever seeing justice done. Perhaps just as bad, those they leave behind see little benefit to justice in the future because no amount of money or even bankers being jailed, can never bring back someone you love. There are some things money can’t buy.

I should add straight away that I’m not saying a bank caused my friend’s cancer – it didn’t. But years of stress, anguish, eviction hearings and trying to make ends meet will not have helped the situation. I’m not a doctor but it seems logical to me that the energy and willpower you need to try and fight of an evil disease like cancer and which should be your primary concern, is not aided when you have bailiffs at the door and a banks top lawyers trying to grind your chances of justice into the ground with legal technicalities and the ever promoted ‘costs’ threat.

That is a reality. When victims of bank misconduct are put with their backs against the wall, no one in authority says “hang on a minute, there’s a reason they can’t pay their Council tax or their bills”, they just go for the throat – which is why we have obscene programmes like ‘Can’t Pay We’ll Take It Away.” Bankers on the other hand, faced with serious allegations that may see them facing fines or, God forbid, criminal charges, can rely on their fail safe – money. Shareholders money (in some cases tax payers money) to bail them out of difficult situations.

It’s only a month since the wife of one of the SME Alliance members died of a heart attack – and in that case I suspect the conduct of a bank was the root cause. When that happened it reminded me of an article I found years ago which was written as a result of research by Cambridge University academics, entitled “Can a Bank Crisis Break Your Heart?”: http://www.cam.ac.uk/news/can-a-bank-crisis-break-your-heart

Obviously a bank crisis and I would add bank policy, can break your heart but business, economic climate and political policy doesn’t seem very interested in the human cost of unethical or even criminal bankers conduct. I say bankers because, as always, I would remind everyone that despite legal terminology, a ‘bank’ is the sum of the people who run it. So I’m feeling pretty heart broken even although I’m not the person dying. Neither am I going to be the person most affected by living without my friend. Her husband and children are and even her parents (who can bear the thought of burying their child?).

Anyway, all this has just hammered me. I’ve found it hard to function in the last few days thinking my friend has a couple of weeks to live and there is no way I can do anything about it or even guarantee justice will be served when she’s gone.

I know it’s very non PC of me to talk about human tragedy and banking in the same breath – but tough. It’s about time we stopped pussy footing around what is happening. Above all else, I believe that as a society we should not let the interests of economics or globalisation over take our ability or even our wish to be decent human beings. Sadly, some people, whether because they are genuinely socio-paths or whether their terms of employment push them into that position, are losing site of their responsibilities as human beings.

Maybe they just don’t realise the consequences of their actions? Certainly many bankers and regulators seem willing to turn a blind eye to the reality of bad banking conduct – and this cavalier attitude to individuals is, ironically, doing good banking a huge disservice. Whereas it seemed totally unreasonable up until 2008 to suggest bankers were anything other than professional people and an essential part of society, in general the opposite applies now and the collective name for bankers is often derogatory regardless of whether they are perfectly good people or one of the acknowledged egomaniacs who have hit the headlines in recent years. No one bats an eye to “yet another banking scandal.” We have even become immune to them – right up to the moment they affect us personally. Right up to the moment a bank deliberately targets our business or repossesses our house. Right up to the moment we realise there is no defence against this immoral conduct.

I have been fighting for justice since 2007. I thought it would be easy and that, having identified a massive bank fraud, I could write to senior management of the bank concerned and they would be keen to investigate the matter and make sure any victims of the fraud were compensated and the villains persecuted. I couldn’t have been more wrong. Since then successive senior managements have gone out of their way to bury the fraud I identified and even persecute the victims – presumably in the belief attack is the best defence. But why would you attack your own clients for things your own staff did? I don’t know why but I do know at Board level that has been the banks’ preferred choice.

Nine years on I am still waiting for justice – and so is my friend. Except now justice will come too late. When she dies and she knows she will very soon, she will be the sixth victim to have died without seeing justice for this particular bank fraud.

Last summer one of my colleagues at SME Alliance and I went to a meeting with Head Counsel and Head of Litigation for a major bank. When our conversation turned to Private Criminal Prosecutions, the Head of Litigation became quite outraged and he said that we should realise that when we make criminal allegations we are ruining people’s lives. Even now I remain confused by this comment – does he seriously not realise how many lives his bank is ruining? Not just ruining lives but taking lives? Clearly the man was capable of having empathy towards others because he seemed genuinely concerned we would consider criminal proceedings against bankers. So how comes this same bank is notorious for its lack of empathy to its customers? Are they considered as a different species? Is this why the good old personal bank manager had to go – because he did empathise with his clients? Maybe he even liked them so the idea of selling them  ‘products of mass destruction’ would have have been distasteful to him?

In terms of banking reform I believe we are walking backwards. No one is properly regulating banks and no one is stopping the merry-go-round of greed and corruption which remains rife in our financial sector. On the other side of the fence, public anger is not dissipating and when one person dies one hundred people dig their heels in harder and want to see justice done. In the same way you can only beat a dog so many times before it will bite you, you can only break so many hearts before the consequences become equally dire.

I wish the senior management of banks would wake up to this fact. Justice has a way of being done despite all attempts to stop it and that includes the apparently well known judicial phrase “might over right.”

It is fortunate my friend is deeply religious and she has no doubt she will be going to a better place – neither do I doubt it, she is a good and kind person. The one sure thing we know about life is we we all leave it one day and the departure lounge for that journey doesn’t have a first class section or private jets – just a completely level playing field or “right over might.”

Justice delayed is justice denied #HBOS

I wrote this blog on Tuesday 6th October 2015 but I didn’t post it because I didn’t want to tempt fate. Unfortunately fate is doing it’s own thing right now and my premonition was no more than logic. Dressed up in different clothes but all the same, on 9th October 2015 the HBOS Reading trials were put back to September 2016.

There is nothing in this blog that breaches sub judice. This isn’t about the merits of the case it is only about the conduct of the case and I make no mention of the content of the allegations. I would however point out that 9th October was a very very sad and even catastrophic day for a lot of people – but, as always, that seems fairly immaterial to the situation and, as far as I know, no one considered the victims when the case was moved.

Justice delayed is justice denied (written 6th October 2015).

Six years ago today Paul and I finished writing a report for the FSA on the subject of HBOS Reading. At that point we had already been investigating events originating at HBOS Reading (that’s the PC description) for over two years. Also at that time we were living on the bread line, our business had been trashed, HBOS/Lloyds had already tried to evict us about 17 times (22 times in total) and no one was really interested in our allegations of fraud.

In 2010 Thames Valley Police finally started an investigation and 12 people have been arrested. It took until January 2013 for anyone to be charged and the criminal trials were due to start in January 2015. But in October last year, the victims of HBOS Reading were suddenly told the trials had been delayed for a year. They are now due to start in January 2016 – or are they?

Call me a cynic but the articles in the press yesterday about the Chancellor, George Osborne’s intentions to off load £2BN worth of Lloyds shares with various discounts and incentive schemes thrown into the pot, rang some alarm bells. This bargain basement sale is due to have completed by Spring 2016 and I can’t help but wonder if a major criminal trial about events in Lloyds unruly pup HBOS is really going to persuade the public they want to get involved with Lloyds?

Of course Lloyds don’t need to rely on the antics at HBOS to tarnish their reputation. At SME Alliance we see examples of outrageous and potentially criminal bank conduct every day and while it would seem Lloyds can’t actually hold a candle to RBS, they don’t do so well in the popularity stakes. Lloyds have huge issues to address and plenty of group litigations to look forward to. Do they care? According to Rowan Bosworth-Davies, giving a powerful speech at an SME Alliance meeting yesterday, top bankers consider themselves to be a protected species. I have no doubt he’s right and that’s exactly what they believe.

However, what worries me more than the conduct of bankers is the conduct of politicians and the judiciary.

To be honest, if I was George Osborne I would be absolutely desperate to get rid of all and any shares in RBS or Lloyds – and he clearly is. Apparently RBS are now going to buy back their own shares to help the Government out: http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/11900014/RBS-could-buy-back-its-own-shares-to-aid-Government-sell-off.html

Meanwhile Lloyds are now going to become the best thing since SID. Fine, and I really wouldn’t care (because I can see why George is doing it, although the ethics of letting RBS buy their own shares with the money they borrowed from the State, does seem something that would have Mr Micawber turning in his grave) except that, in the case of Lloyds, I have a horrible feeling that all those skeletons Mr Horta Osorio wanted dragged out of the cupboard when he took over as boss, are about to be put back in and even bricked up.

HBOS is a delicate subject in anyone’s book and I suspect the forthcoming book ‘Crash Bank Wallop’ by Paul Moore, the HBOS Whistleblower and a good friend, will be considered by some as being as delicate as the trigger on a hand grenade! There’s nothing the authorities can do about that and I dare say Mr Horta Osorio will react in a similar way to David Cameron when Lord Ashcroft’s book about him came out. In the name of dignity he will just try and ignore it. But it will rankle and it will beg the question “why the hell did Lloyds get involved with a basket case bank?”

Then there’s the HBOS report which apparently some MPs are getting a bit tetchy about. As I blogged the other day, we have been warned about the likely redactions. But in my opinion, redactions won’t be enough. I think it’s likely to be delayed again and, if not, the redactions and re-write’s to protect the great and the good (not Hornby, Cummings, Stevenson or Crosby – I don’t think they are a protected species any more) will mean the report has limited value. We may get something in October as we’ve been promised but I’m guessing the full report, when all the Maxwellisation and Re-Maxwellisation has been completed and enough lawyers have made sufficient money to sail off to the Cayman Islands in a beautiful pea green boat, will appear late Spring and after the Lloyds shares have been sold. And on whose orders?

A lot of people will be eager to read Paul’s book and the HBOS report (believe me, the book will be the better read). However, the victims of HBOS Reading are not waiting to read a book. Not even my book which is about HBOS Reading. We are waiting to get our lives back and we’ve waited a very long time. Given the trials are about events that happened between 2002 and 2007, some of us will have been waiting 14 years by the time the trials are over. And the idea (and it is only a suspicion) that the trials will be moved again to fit in with the Lloyds share sale or for any other reason, makes me feel physically sick. Not only because I am tired, I’ve had enough and I want out of the nightmare this has become – but because I am literally terrified at the idea politicians can manipulate the criminal justice system to suit their ends and those of the 1%!

Surprisingly I have a lot of friends who are lawyers, barristers, QCs and even the odd Judge. They are good people and I know many of them care passionately about justice. They are also common sense people and I know many of them have campaigned against the cut in legal aid and the rise in court costs for people who can ill afford to take on gigantic corporate organisations.

SME Alliance relies on the good advice we get from good people in the legal world – some of our members haven’t always had good advice but we are gradually getting together a very good team. When I explain to my friends how often the Reading trials have hit delays and for how long, they are shocked. I’m not sure our new friend Rowan Bosworth-Davies will be shocked if, for what ever reason the HBOS Reading trials are moved to late Spring. I don’t think my good friend Brian Basham will be shocked nor will Paul Moore be shocked.

I won’t be shocked but I will be devastated. If it happens and I genuinely pray we won’t have another delay, it will cause untold pain, misery and unhappiness for a group of people who are already at the end of their wits. And personally, whatever reason is given for another delay, I will find it hard not to think it is to accommodate George Osborne’s sale of the Lloyds shares. And, were that to be the case (although of course that would never be the reason given) that would be a bad day for democracy and for truth and justice because, whatever politicians do and what ever power they have, they should never have the power to interfere with justice.

 

 

 

Dear Sirs, this is hardly flattering. Please redact. #HBOS

IMG_3454I’m confused – for years now the FSA followed by the FCA have been looking into the conduct of HBOS. Whether or not he is considered good guy or bad guy, I know Hector Sants (who admittedly took some persuading) was eventually keen to get to the bottom of what had been going on in HBOS and he wasn’t in the mood for ‘cover up’ when he released the BoS Censure Report in March 2012. Not long after that he mysteriously went from being the golden boy tipped to take a top job at the Bank of England, to relative anonymity. Since then nothing has been heard about the Section 168 Report commenced in June 2010 specifically into HBOS Reading (probably because of the ever pending criminal trials due to start in January 2016) and the overall report into HBOS and its top management has been continually delayed.

Articles in the press yesterday seem to confirm that report will be out next month (October 2015). However, even now, after the endless delays and God knows how much spent in legal fees by the Bank (I imagine Lloyds has picked up the bill for Stevenson, Hornby, Cummings and Crosby – if he’s actually included) and the regulator, we have now been warned to expect redactions.

How does that work? The regulator does an in depth investigation into the catastrophic demise of HBOS and the people who were running the Bank don’t like the conclusions the FCA have reached – so they are able to have certain parts redacted. I’m not saying the report found anything criminal (although in my personal view I fail to see how it couldn’t have found some very shady conduct) but even in a civil court, could someone ask a Judge to redact the bits of evidence they don’t like? Imagine, “your honour, I don’t think the evidence before you puts me in a favourable light so I’d like that bit crossed out.” I would love to have any current photo taken of me photo shopped so I look thirty years younger but the truth is, I’m not. These possible redactions are similarly trying to change history – and it can’t be done. Neither should anyone countenance attempts to do so.

I have been told (repeatedly) that the FCA has quite extraordinary powers, should it care to use them. I know the powers of the FSA were split between the FCA and the PRA but all the same, how can top bankers or their legal teams, oblige the regulator to redact the findings of its own report? It makes no sense. Neither does the sharp ‘Harp’ exit of Mr Wheatley make sense. I find the whole thing very concerning. Rumour (or the media) has it, Mr Wheatley was too ‘consumer friendly’ and this did not fit in with Mr Osborne’s plans to make sure the City Of London retains pride of place in the financial world. Which is a bit odd because lately, even the BBC has been portraying the Square Mile as something akin to the Guild of Thieves from the Disk World.

Therefore, what worries me is this: if Mr Wheatley had to go because he wasn’t banker friendly enough, how can we expect Mr Osborne to allow a full, frank portrayal of what went on at HBOS?

Although various MPs and, I think, the TSC have demanded to see any redacted passages, how can other people, who have first hand experience of what was going on at HBOS, ever challenge what they will never see? I do know what some of the information and evidence the PRA received to contribute to this report was, as I sent some, as did Paul Moore. We didn’t send it randomly in the hope someone would read it, we were in direct contact with the PRA and the Bank of England via the Governor and we know they all received and read our evidence. Consequently we have our own views on what the FCA Report should include. It’s not a pretty picture and I have often wondered how the bankers concerned would refute this evidence? Well obviously, if the contentious or nasty bits of the report are redacted, they won’t have to!

Redaction has been a big issue with SME Alliance recently. Members sending Direct Access Requests (DSAR) to get their information from their own central files in banks (mostly RBS) have received such varied replies, we’ve asked both RBS and the Information Commissioners Office (ICO) to clarify exactly what members should expect to get. The answers so far have been as clear as mud but it is pretty clear no one should be getting entire pages redacted. Neither should anyone be getting information that has been manipulated or tampered with (that’s another story coming soon). We are struggling to get to the bottom of Section 7 of the Data Protection Act 1998 and a definitive interpretation. But I’m not sure Section 7 of the DPA was ever intended as a barrier to regulators publishing reports on banks or bankers! Neither was Maxwellisation and the remarkable Re-Maxwellisation meant to be used as a means of delay or ‘cover up.’ These are clearly new techniques invented by the very clever (and well paid) lawyers of La La Land – but that doesn’t mean we or the regulators should blithely accept them.

My other concern is that while this report may actually be more candid than others before it (I’m remembering the 1 page press release fiasco from Lord Turner about RBS http://www.publications.parliament.uk/pa/cm201213/cmselect/cmtreasy/640/640.pdf ), it will be written in such a way as to minimise any potential legal actions against Lloyds Banking Group who merged with HBOS. Contagion is a huge issue for the banks and I’m sure the emphasis of this report will be on “this is what HBOS did but Lloyds were totally unaware of any of this.” Which begs the question (again) – why would Lloyds go ahead with such a critical merger without knowing chapter and verse of what they were getting involved with? Money laundering rules being what they are these days (or profess to be), banks need so much information to open an account, I’m waiting for “what colour knickers are you wearing” to be added to the list of KYC questions. So it is inconceivable Lloyds had inadequate detail about their new partner. And, in my opinion, Lloyds didn’t just merge with HBOS, they’ve done a pretty good job at morphing into the same sort of unethical and unattractive organisation.

Last thing – I know many victims of HBOS have waited years now for some sort of closure. The criminal trials regarding HBOS Reading have taken years to happen (if they ever do) and the various reports on HBOS have been endlessly delayed and now (probably) redacted. While I don’t suppose the ex management of HBOS have been quite as cavalier about the FCA report as they were about running the bank, I very much doubt if any of them have suffered anything like the hardship the banks’ victims have. Some of us have had our businesses ruined and our lives on hold for many years. Not to mention the many people who lost their savings and their retirement plans via the disastrous way HBOS was run. So I really hope, regardless of the HMT’s desire to hang on to its golden goose (that many of us feel is actually a dead duck), that when the HBOS Report does finally come out, it is as honest as harsh and as damning as it should be. Hector left us with the BoS Censure Report – before Mr Wheatley left, let’s hope he finished the job and, for once, let the blame fall where it’s due.

Maxwellisation? Enough already.

So first we had the so called ‘credit crunch’. Bankers all over the world, all paid telephone number fees, ran banks into the ground and brought various economies to their knees. Then we had the bailouts – Governments all over the world and not least the UK, decided the best way out of the ‘credit crunch’ was to give the banks billions of pounds, dollars, Euro’s, you name it, they gave it, to the banks to replace what they lost in their bizarre spending frenzy. And that resulted in mass austerity across the UK, Europe and the US – probably elsewhere as well but I’m not an expert.

Then came the clean up – or the apparent clean up. What happened to cause the credit crunch and how regulators and Governments could ensure we wouldn’t get a repeat performance anywhere in the near future? And how was this clean up done? Well that’s the latest page in the most bizarre story of the 21st century history book – we clean up by burying as much truth as possible and where we can’t – because the public are demanding explanations – we introduce Maxwellisation.

I’ve read various explanations of Maxwellisation and they make as much or even less sense to me as the fateful and long drawn out love affair on the Maxwell House advert. I don’t know what happened in the agonising and tragic story of a love affair that was almost but never quite fulfilled. I certainly don’t know what it had to do with coffee! And similarly I don’t understand how the exploits of Robert Maxwell – who apparently ripped off not just his own company but also pension funds – could be introduced as a legitimate way to stop the rightful exposure of wrong doing?

I may be mad but surely we’ve got it the wrong way around? If our regulators and their third party experts do in depth investigations into situations and come up with explanations, in the form of reports, which finally expose the truth, how can it be right that the people named and blamed in those explanations, can challenge the reports before they are released? Are we saying our ‘experts’ and our regulators may have got things completely wrong? Is it in the nature of ‘experts’ who spend years doing these reports at vast expense to the public, to get it completely wrong? Is that an equation our regulators start with? I don’t think so.

This is like an appeal in the justice system happening before the trial. So the crooks, let’s say for the sake of argument bank robbers, receive the prosecution case and, before a Judge or a jury gets to hear it, half of it is removed because the accused don’t like it or they don’t agree with it. Better still, the accused’s lawyers may be able to come up with legal technicalities as to why the allegations can’t even be made in the first place. So what the Judge or the jury finally get to hear is an edited version of events as permitted by the defendants. Wow, I can see that going down very well with the criminal fraternity. Not a luxury extended to Tom Hayes but surely one the magic circle lawyers will be insisting on for more senior bank management in the future.

As someone who has spent years of my life investigating bank fraud albeit from the perspective of someone who is actually in the rock & roll business, the one thing I know is ‘the written word doesn’t lie.’ Even if people have been deliberately writing lies, the culmination of a proper investigation will just highlight those lies and you will be grateful someone bothered to put the lies in writing as an example of fraud or corruption or, at the very least misconduct or negligence. For example – how could any bank relying on untold amounts of emergency funding from the Bank of England and then needing several billion pounds from the public purse, possibly pretend to investors that it’s a safe bet to plough money into a Rights Issue? But read this absolute twaddle from Andy Hornby back in 2008 http://www.thisismoney.co.uk/money/news/article-1631967/HBOS-chief-Hornby-defends-rights-issue.html and you’ll see that’s exactly what some of them did! Now what part of Maxwellisation can alter those facts?

Better still, let’s remind ourselves of exactly how the great and the good from HBOS and RBS were still trying to pull the wool over everyone’s eyes even after they’d been so instrumental in bringing the Country to the edge of the abyss: http://www.publications.parliament.uk/pa/cm200809/cmselect/cmtreasy/uc144_vii/uc14402.htm

That’s a cracking read by the way.

I don’t know how anyone would do a comprehensive investigation into why we went into the Iraq war although logic would say the absence of the weapons of mass destruction, which were the reason for so many tragic deaths, raises some terrifying questions. But in the case or RBS or HBOS, it’s just not that complicated. If two music publishers can expose a massive fraud in HBOS and if certain members of SME Alliance are supplying the Times with evidence of massive issues in RBS, how can the FCA and their ‘experts’ be so endlessly challenged on their findings? The whole thing smacks of the dreaded ‘D’ word – deals. Deals to hide what really happened in our banking sector. Deals to protect the so called great and the good. Deals which, rather than give the public some sort of closure on what happened and show who was responsible, will just ensure the same or worse happens in the future.

There is no point in Maxwellisation – it’s apparently not a legal requirement and all it is doing is staving off the inevitable. If either of these banking reports ends up as another whitewash, there’s a whole army of people out there who will challenge them. Journalists, whistle blowers, small organisations like SME Alliance, Move Your Money and Bully Banks – not to mention various forthcoming trials (criminal & civil) which will shed more light on the reality. Clearly, if the FCA keep delaying their reports or if they allow the truth to be watered down, others will happily set the record straight.

I would say, from a public perception, Maxwellisation should really be called Orwellisation. We are continually walking backwards to Orwell’s views of 1984. The important difference is, there was no social media in Orwell’s world. No twitter or Facebook or Linked In. And unless the powers that be can wipe out the world wide web, Maxwellisation is actually and ultimately just like the coffee advert – long, drawn out and a fantasy. We’ve had enough fantasy when it comes to real people’s lives. Just like the cream always goes to the top of the coffee,  the truth, as Hillsborough has shown us, also has an amazing way of coming out on top and Maxwellisation won’t change it.

Surely the public have been on the receiving end of too much abuse from bankers without this latest trickery? Let’s just get on with it please, let’s publish these reports and stop all this nonsense. As a very good friend of mine would say – enough already!

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 http://www.ianfraser.org/dear-mr-cameron-if-bankers-are-above-the-law-we-need-an-urgent-explanation/

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.”

Bad Saturday – Twenty people with teacups can’t stop the flames of the next credit crunch.

Not a good start to a Saturday. First the post arrived and it was one letter with a barely legible hand written envelope to Mr P Turner – well done to our postman for deciphering the address. All the same we could see immediately who it came from because of the Royal Courts of Justice stamp on it. We were surprised because we don’t have a pending case in the Courts. What we do have is an indefinitely stayed case regarding our never ending eviction hearings. It’s stayed pending the outcome of the HBOS Reading trials which were due to start in January 2015, were moved to September 2015 and, a couple of weeks ago, were moved again to 2016.

For those reading this who don’t know anything about Paul and I, we have spent years investigating and exposing a major bank scandal. It took us from mid 2007 to September 2009 to get the regulator involved and then another year to get the police involved even although we reported it in December 2007. For our troubles, HBOS and then Lloyds Banking Group tried to evict us 20 times and on their last attempt a Circuit Judge allowed it and refused us permission to appeal. So our last hearing was the second of 2 in the High Court where we were asking for and then granted permission to appeal. That was in August 2010. However, by this time the police were involved and the first arrests in the case were in September 2010. So in December 2010 the Bank asked us to agree to an indefinite suspension of any eviction hearing on the grounds both we and they were witnesses in criminal proceedings – it wouldn’t do for witnesses to be fighting each other. That’s where we are – on hold until the criminal trials are over and God only knows when that will happen – although thinking about it, God probably doesn’t know either.

Anyway, the letter, or rather the form from the Courts this morning, informed us that our case is now closed and we have 14 days to retrieve our paper work or it will be destroyed.

This could mean one of two things: First, a clerk in the court, tasked with filing, has seen the date on our case and assumed it must be over, or sorted, or in any event not going ahead because it’s dated 2010. I might make that assumption myself in the same way I would have assumed the HBOS Reading trials would have been over 4+ years after people were arrested. And if this is the case, which I hope it is, we simply have to inform the Court our case is not over and is still active.

The second and darker scenario is that this is some form of legal trickery by the Bank to get the case out of the High Court and maybe back to a friendly Circuit Judge. I can’t see why the Bank would do this or how it would be advantageous to them when they could simply carry on waiting for the criminal case to start which could be never? But, while I repeatedly say (these days and as a founder of SME Alliance) that I firmly believe there are good banks and good bankers, sadly I don’t include Lloyds Banking Group or team Horta-Osorio in that bracket. And I am always waiting for their next malicious move.

You don’t hear much about HBOS these days although there was a small flurry of news when it was reported the FCA review into HBOS (like the HBOS Reading trials) has been delayed yet again – until after the election. Well there’s a surprise. But I don’t think this is because anyone in Government or in the FCA/PRA has forgotten about HBOS – we are constantly reminding them it remains unresolved. I think it’s still a priority – or at least burying what happened at HBOS is still a priority.

Which leads me on to the second disturbing thing about this Saturday morning. Included in our e-mails this morning were a couple from our friends at WBUK (whistle blowers) who wanted to share a video on Youtube. The video is of ‘The Spaniard’ interviewing a former employee of the FSA/FCA turned whistle blower. https://www.youtube.com/watch?v=bS5c1FmVL8M

The whistle blower, who almost certainly isn’t called ‘Joanne’, says she worked in the financial sector for 15, 16 years and her last job was to help the FCA write mortgage policy so a financial crisis couldn’t happen again (so she was looking at what happened with sub prime) – I have no reason to doubt what she’s saying. She also says or confirms what a lot of us have felt for a very long time – the regulator is paid for and controlled by the banks.

This is not a revelation and I do remember a senior enforcement officer of the FSA telling Paul and I the FSA BoS Censure Report of March 2012 could have been published two years before it was but for Lloyds stopping it – which was a clear case of the tail wagging the dog.

Ridiculously maybe, even people like me who have battled long and hard with the FSA for 7+ years, still hope there is an element of good intention in the Regulator’s office and that ultimately, it will do what it says on the tin – i.e. regulate, control and, where necessary penalise the banks and bankers to stop them doing more damage to the economy and to society as a whole.

Some would say that is a very naïve view and one I have no excuse for holding but actually, it is essential we hold on to this hope because the alternative is too dark to consider. Which is why I found ‘Joanne’s’ words so depressing this morning. I am a member of WBUK and I know there is no glory to blowing the whistle. Whether you blow the whistle on the MoD, NHS or the financial sector, all you will get for your efforts is aggravation, alienation and sadly, in many cases, persecution leading to serious depression. So I think Joanne would have thought long and hard before she did this interview.

It’s quite hard to hear what she’s saying because it was a telephone interview so I’ve transcribed a couple of extracts:

“….it was all about making sure you work with the banks to protect the banks, not to protect the people. It’s definitely not independent – everything had to go back through the banks, even the wall to wall control by banks – it was absolutely astonishing. I was amazed at the amount of politics that was there and the fact that everything had to be referred back to – did it reflect well on the Government, did it reflect well on the banks – and that was the aim of everything.”

…. and in my opinion there were rules already in place that could have been used to prosecute banks and could have been used to hold somebody to account for what happened in the massive mortgage mis-selling scandals. But they weren’t because nobody had the will to. Because that’s not what we were there to do – we were there to give the impression that’s what we were doing but you weren’t actually supposed to do it.”

I would have transcribed more but it’s too depressing – maybe I will tomorrow. In short, what Joanne is saying is, all the harsh words from politicians, from the Treasury, from the regulators about how bad our banks are and what is being done to reform them, are no more than lip service put regularly in the public arena to deceive us. In reality the banks have been and are still holding all the cards and pulling all the strings. When you go to the regulator with a serious complaint, you are really sharing information with the banks and they will decide how it is dealt with. If Joanne is right in her allegations then Paul and I have furnished the Bank with 35,000 pieces of evidence about HBOS Reading. Not very clever of us.

Back to this morning’s post and Mr HO. I have no faith or trust that the HBOS Reading trials will ever go ahead – I hope I’m wrong but considering Joanne’s words, it seems unlikely the establishment would allow such a controversial story to come out. Similarly the FCA report into HBOS. If regulation is all about protecting banks and not the people, HBOS is a hot potato that at all costs must be mashed to a pulp and then smothered in a gluttonous gravy that makes it impossible to recognise let alone swallow.

While Ian Fraser’s brilliant book ‘Shredded’ (which I would advise everyone to read) exposed the horrendous goings on at RBS, there has been no major criminal case involving RBS bankers which would put Ian’s research in the spotlight and directly in full view of the Court of Public Opinion. Not so HBOS – we’re waiting for a major criminal trial to proceed and a major FCA review to be published. Additionally, there is at least one book taking a very candid look at HBOS waiting to come out and that is over and above the fact no one can doubt, after his years of blogging and articles, Ian Fraser is a font of knowledge about HBOS as well as RBS. Of course all concerned will abide by the rules of sub judice until the criminal trials are over but none of this will fit the criteria of “ did it reflect well on the Government, did it reflect well on the banks” Clearly not. So will the authorities ever allow HBOS to be fully exposed? Probably not.

And if that is the case, the only other place where much of the truth about the staggering misconduct in HBOS would come out, is in a High Court case when and if the Bank decide to re open our eviction hearings – although actually the stayed appeal is our case and we could also reopen it. Our defence in the eviction hearing is entirely based on what happened at HBOS Reading and the conduct of the management of HBOS and Lloyds after Reading was exposed.

So maybe the logic of the Bank and its high powered lawyers is to get our case out of the High Court where it could be as damaging as the criminal trials themselves? Or maybe our post this morning really was a case of a clerk having a tidy up? Who knows? Either way, Paul and I have learned a lot over the last 8 years and we will not be ignoring the Court letter.

I really, really hope that one day soon, someone, somewhere in authority, will decide enough is enough and bring about even a minor change of policy that starts reflecting the interests of the Country and its people over the interests of the Banks. I don’t think that someone will be David Cameron or George Osborne or Ed Miliband. All of this “first and foremost protect the banks” policy, started under New Labour and has progressed under the Conservatives. Sure, there are some really good cross party MPs or even Conservative or Labour MPs – but one swallow doesn’t make a summer and even a really good MP – my friend Clive May’s MP, David Hanson, is a very good example as is Brian Little’s MP, Jim Shannon – can’t change policy on his own.

Maybe Mark Carney who has said “no one is above the law”is the man for the job? And someone told me a while back that John Griffith-Jones is actually one of the good guys and I should talk to him – I would certainly like to and I would like to ask him for his comments on what Joanne has said. I would be so happy to see concrete evidence that actually the FCA considers “consumer protection” and “the reduction of financial crime” of equal importance to “market confidence.” But Joanne’s words make that hard to believe. Especially her comment when she was asked – if Wembley Stadium going up in flames equalled the credit crunch, how many fire engines would she say the FSA used to put the fire out? Her answer was:

….“there was probably a line of twenty people with teacups.”

That is very scary and we should all be aware the only outcome of this situation continuing is the next fire won’t be contained to a stadium.

Many thanks to both the Spaniard at White Rabbit Education and ‘Joanne’, for bringing this insight (or is it incite?) to our attention.