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Posts Tagged ‘UK Banks’

The World of Roger Jenkins – Banking Crisis – What Banking crisis?

March 22, 2009 1 comment

Roger Jenkins has done quite well in banking with Barclays, this article in the New York Times November 21, 2008 illustrates just how well he has performed his duties and been richly rewarded despite what is believed to be the worst banking crisis on record. He in particular appears to be friendly with some very wealthy reactionary Arab rulers.

See link below;

Barclays Benefits From a Friendship – NYTimes.com.

Northern Rock among lenders still offering high salary multiples – Money – The Guardian

March 21, 2009 Leave a comment

I think we may getting to the silly stage in the argument about how much a borrower should have for a mortgage. I see no problem if a borrower needs five time the income, attempts to limit the amount to 3 times income or less is silly.  It is quite probable the crisis we have seen may have been caused by budding property developers who used self certification which means of course that banks and building societies really were gambling; add of course securitization then you have a budding crisis as we did.

As long as someone can afford up to 5 time their annual income I see no problem and clearly many can. I think we are in danger of over reacting.

Link to The Guardian below;

Norther Rock among lenders still offering high salary multiples | Money | The Guardian .

RBS traders hid toxic debt – Telegraph

March 21, 2009 Leave a comment

The causes of this financial crisis are once again exposed and traders working for the Royal Bank of Scotland (RBS) not only got the bank into deep trouble but were as usual for failure in business well rewarded for it in fat bonuses. There is some thing very wrong in British banking and it needs serious inquiry and reorganization.  Fred Goodwin former boss of RBS needs to explain his role. ” He repeatedly put out statements to the City saying that RBS “don’t do sub-prime” even though traders were buying the sub-prime assets. RBS board directors suspect he may have acted negligently…” Telegraph.

I think we would all feel a little happier if Gordon Brown and Alistair Darling announced a Royal Commission to investigate and report on the origins and consequences of this financial crisis. We need a thorough independent investigation.

Telegraph: “Traders received multi-million pound bonuses after acquiring more than £30 billion of sub-prime assets during early 2007. Following these purchases the bank “didn’t stand a chance” of surviving unaided, one board director told this newspaper.

The sub-prime assets are being blamed for causing the bank’s near collapse last year. Last month RBS posted a loss of £28 billion – the largest in British corporate history…”

More see link to The Telegraph below;

via RBS traders hid toxic debt – Telegraph.

BBC – Today: Treasury slated over Rock lending

March 20, 2009 Leave a comment

Radio 4 Today programme highlighted an alarming story from Northern Rock’s adventures in risky mortgages after receiving help from the taxpayers;

BBC Today: “The Treasury has been criticised for allowing Northern Rock to lend £800m in risky mortgages for six months after it was propped up with taxpayers’ cash.

The National Audit Office report on the Treasury’s handling of the crisis found the bank was still giving mortgages of up to 125% in early 2008.

It said the Treasury was aware of ‘potential shortcomings’ in how to deal with failing banks as far back as 2004.

But it concluded nationalising the bank had protected taxpayers’ interests..”

via BBC – Today

See also Peston’s Picks below;

Rock blew whistle on economic flop

Robert Peston: “…A mountain of evidence has been building and has been visible for more than a year that they, and the Bank of England, and the Financial Services Authority (and the US Federal Reserve, and so on) simply didn’t appreciate that – since around 2000 – they were steering the Titanic into the mother-of-all economic icebergs…”

New whistleblower claims over £1bn Barclays tax deals – Business – guardian.co.uk

March 20, 2009 Leave a comment

There are funny goings on at Barclays Bank, which has been involved in preventing The Guardian publishing documents supplied by a whistleblower on the bank’s tax avoidance unit. Barclay Bank it seems now needs to taxpayers money to provide insurance against losses – yeah – they don’t mind taking taxpayers cash whilst doing their best to avoid paying it and not just in this country.  Below are a few paragraphs from The Guardian on this story and the link follows;

The Guardian: “Further detailed allegations about tax avoidance schemes set up by Barclays Bank emerged tonight from whistleblowers who said the bank made close to £1bn profit a year from a series of elaborate deals.

The schemes are similar to those detailed in documents published by the Guardian this week which have been the centre of a three-day hearing at the high court, and are the subject of a gagging order.

The internal Barclays memos were leaked by a mole to the Liberal Democrats. The new allegations reiterate claims that the bank’s main purpose in entering into these schemes was to make profit from tax avoidance through an intricate circuit of offshore Cayman Islands and Luxembourg companies. The profits are said to be enormous and the deals so complex that HM Revenue & Customs (HMRC) struggles to unravel them…”

More see link below;

via New whistleblower claims over £1bn Barclays tax deals | Business | guardian.co.uk .

House to Vote on Taxing AIG Bonus Bonanza – Presidential Politics | Political News – FOXNews.com

March 19, 2009 Leave a comment

BRAVO, at last there are people with the courage to make a stand against the thieving bankers.  As taxpayers save their jobs so these bankers accept their bonuses. The US Congress is now passing legislation to claw back the bonuses ($165million) from AIG who made this crisis in the first place. This is precisely what Gordon Brown’s Labour government should have done to people like Fred Goodwin tax his pension.

I am sick and tired (I’m sure I’m not the only one)  of those few apologists who feel we should let people like Goodwin get away with taking taxpayers cash oh dear contracts – break the contracts; people like Goodwin ruined their banks so they should share the loss, many employees have lost or are losing their jobs so why should people like Goodwin get away with fabulous pensions and bonuses. It’s no good wringing hands Gordon we want to see the bankers squeal, yes, some may well be old friends of yours, you knighted Goodwin for services to banking why has he still got his knighthood? Why on earth are the present generation of Labour MPs so meek? They should be shouting from the rooftops!

Many people have lost their jobs many will do so we should be acting for them and make those who caused this financial crisis suffer!


FOX News: WASHINGTON — “Venting their outrage, lawmakers are preparing to slap heavy taxes on employee bonuses at insurance giant AIG and at other companies that have received large bailout packages from the government.

The House was scheduled to vote Thursday on a bill that would levy a 90 percent tax on bonuses paid to employees with family incomes above $250,000 at companies that have received at least $5 billion in government bailout money.

“We figured that the local and state governments would take care of the other 10 percent,” said Rep. Charles Rangel of New York, chairman of the tax-writing House Ways and Means Committee…” More see link below;

via House to Vote on Taxing AIG Bonus Bonanza – Presidential Politics | Political News – FOXNews.com .

Roger the Dodger – £40m king of tax – Business – The Guardian

March 19, 2009 2 comments

This morning The Guardian publishes an interesting story about Roger Allan Jenkins who has been usefully employed by Barclays Bank to help it avoid tax problems.  He has mastered the tax regimes of various countries and has done quite well out of it.  He was the boss of the Barclays Capital Structured Capital Markets (SCM), the unit responsible for helping Barclays Bank avoid tax payments in many countries.

The  Guardian: “He is thought to earn more than £40m a year, and is responsible for running a division of Barclays Bank that may have saved it – legitimately, if controversially – from paying billions of pounds in tax revenue.

Fiercely clever, but abrasive with it, he is a daunting figure for those around him at work. And at play, he and his wife can count the likes of Cindy Crawford and Mick Jagger as friends.

Yet few people outside the exclusive world in which he lives have ever heard of Roger Allan Jenkins, a man whose nicknames – Roger the Dodger, The King of the Double Dip – say more about him than he ever would….” More see link below;

via Roger the Dodger – £40m king of tax | Business | The Guardian .