Saturday, February 27, 2010

Why Aren't The Bank of Scotland Frauds ...

as documented by Ian Fraser, being picked up and run with by bloggers of left and right ? Fraser has loads of stuff - absolutely top grade journalism.

In the light of the many dodgy dealings of BoS staff, the unsolved murder of business manager Alistair Wilson raises unpleasant possibilities. Maybe the police need forensic accountants rather than DNA samples.

Here's the One Voice group for the victims of one set of frauds - Vavasseur.

The almost unbelieveable - but true - story of BoS executive Lynden Scourfield and BoS Reading is here. The basic modus operandi seems to be

a) a company (in all innocence) approaches BoS Reading branch for help

b) BoS recommend firms use 'turnaround consultants' Quayside Corporate Services, or else appoint Quayside personnel onto their boards as directors. Threats to withdraw lending if firms are reluctant to accept this advice.

c) once the nominees are in place, BoS hand over large loans.

d) nominees extract as much cash as possible while driving the businesses into bankruptcy, often picking up the distressed assets themselves at firesale prices. Small business owners lose everything.

You couldn't make this up. The FSA stinks to high heaven for its failure to nail the perpetrators.

Apparently the Reading branch of the Bank of Scotland is "with you all the way". But they never said where to.


Anonymous said...

I'm amazed also at the po faced repeating by various bankers that those getting their enormous bonuses have earned it and that they need to retain these vital staff.

How many regular people believe the bankers have earned this, that these super competant people have done anything other than feather their own nests?

If they were that clever they might ponder on what their likely fate and that of their beloved banks might be in the future. Giving up their bonuses and trimming profit would seem a very wise down payment at this stage.

As for the fraud element, havent banks been pulling stunts like this for years.

You own a business, which owns a factory/business valued at £1million.

The bank loans you £50,000, money lets remember (fractional reserve banking) that never existed in the first place.

One day they call in the loan, I'm good for it you cry, just give me a bit of time, No! We want it now, or hand over the business.

You hand over the business.

Not a bad deal, they risked a non-existant 50k, now they have 1000K.


Or have I missed something?

Anonymous said...

I see there are no comments on the Ben Elton post.

I'd like to use some very nasty words to desribe that little weasel.

Although he has left these shores (good) I saw him in an interview say he would be popping back regularly (not good). Given his oft professed commitment to green issues I trust we wont find him using aircraft to make these trips. Walking perhaps, sailing ships? No double standards Elton old boy, thanks.

Btw I found out the other day that Ben Elton's great grandfather was friends with the future Kaiser Wilhelm II (when at school at Friedrichsgymnasium). Its probably not significant - but it is fascinating.

Anonymous said...
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Sgt Troy said...

That's first class Laban

The hypocrisy knows no bounds

"The public outcry that followed the two major crises of the past year was driven by moral outrage. The anger was not primarily provoked by breaches of the law; instead it was in response to the violation of an unwritten ethical code that should guide us in our daily lives. The demand now is that both the global financial system and the domestic political system should be brought into closer "

We will put people first, not bankers

Anonymous said...

I know a farmer who ended up nearly going bankrupt due to the BoS Reading branch corruption. He's just keeping his head above water at the moment, but he had to sell some land to keep them from foreclosing on his farm.

Like you I can't understand why this scandal is not being more publicised in the media.

Sgt Troy said...

"Like you I can't understand why this scandal is not being more publicised in the media."

Supremely powerful vested interests

Richard Murphy who runs the Tax Rearch blog described the City as "rotten to the core" when the NR scam blew up.

The Labour Party with whom it has been locked in a horrid embrace since the early nineties is positively evil - especially its Scottish elements as we now see.

The Tories have always been pretty dodgy.

The media is controlled by the rich and powerful.

Making a stand can have unfortunate personal consequences

Anonymous said...

"That's first class Laban"

licky licky