NCFP Opinion | UK Business & Banking Culture Without Moral Compass

NCFP Opinion – UK Business and Banking Culture Without Moral Compass

We watched Panorama last night about the latest banking scandal. And then this morning there was a big piece in the paper about Boots UK Ltd avoiding tax. It struck me – who has bought into so many businesses? The banks!!

The latest scandal, Panorama reported, is so called “interest rates swaps”. Businesses that had loans, and more so, those who wanted to increase their loans, were forced by banks, or else persuaded by a hard sell, to go into a different form of loan under the guise of business restructuring, which was claimed to help them reduce their debts and help them to get on a sound footing. It did the exact opposite.

Under this scheme, when interest rates fell, the loan payments increased; and on top of that, bank charges dramatically increased. Then the banks advised the now desperate borrowers to stop paying their tax due to HMRC. The result was that the banks made a killing, and the businesses involved were killed off – many by HMRC suing them for the tax owed; you can’t not pay your tax for long, can you? It turns out that it has cost the UK many thousands of jobs.

The new Financial Conduct Authority – apparently run by ex-bankers – has done a deal with the banks to compensate their victims – but only those victims employing less than so many people, or with turnover less than £6.5m/yr, or total value less than £10m. So the biggest victims will not be compensated. Also, those with less than so many employees, so much worth, will ALSO not be compensated. The banks screwed BILLIONS from these unfortunates. And the compensation is taking years to get anywhere near fruition: it seems there were 30,000 firms hit like this, and so far, after several years, just 32 have been compensated. The banks should, we are told, pay some £10billion compensation to the victims of their mis-selling; so far just £0.5million has been paid out.

And then there is Boots. It was bought by “private equity capitalists” – i.e. the banking community. They took out loans of £9billion, so as to reduce their tax bill by 95% (saving £1.1billion) on profits of £5.6billion, moved the business headquarters from Nottingham to Switzerland and actual ownership by a company registered in Gibraltar…and now they are selling it. So they will make a killing, and the taxpayer here gets ripped off. On top of which a lot of Boots’ employees are on zero-hours contracts.

And on top of this, the Royal Mail sell-off. Who advised the government of its worth? Lazard Brothers – another b—y bank!! Undervalued by some 20-odd percent, so straight away the hedge fund managers and banks make immediate massive profits, and the taxpayer is short-changed. And what does this s***ing government do? NOTHING. ZILCH. NOWT. SWEET FA.

Am I mistaken, or is this country the most crooked, corrupt haven for the rich in the Western World? Some assert that TRNC is corrupt – but who do you think taught them how to do it?

If this government had any integrity it would charge these b—-y bankers with treason. For that is surely what they are doing. But while they pour money into Tory Party coffers, all they get is a licence to do more of the same. Makes my blood boil!

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