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Valentine St Aubyn

 London Financial Capital of Fraud

By pedro g.

Contributing guest blogger

                                                                 !Global Insurrection Against Banker Occupation.

                        Why London is the Capital of Fraud - A partial catalogue of wrong-doings.

"In a state where corruption abounds laws must be very numerous" - Tacitus

We begin with a reflection on Atlas Shrugged:

Author Ayn Rand may have been enamoured with the US moving to the United States in 1926. having been born and educated in Russia. The 1917 October Revolution and the rule of the Bolsheviks under Vladimir Lenin disrupted the comfortable life the family had previously enjoyed and her father’s business was confiscated and the family displaced. Naturally, this experience may have affected her, to later go on to shape her views of Objectivism”.

Ayn Rand  in her books and essays proposes many things, some quite benign fitting quite well in a context of learnt knowledge and self development, self awareness. However, a much darker topic looms. Ayn Rand has and continues to this day to be viewed as an intellectual reference pointing in favour of Capitalism and the Free Market by people in business and politics. This Elite or wealth creators have taken her philosophical constructs and tried to adapt these to suit their own views of Capitalism whilst feeling validated that their quest is vindicated by a highest intellect. The issue is that  many readers of Mrs Rands are politicians who already have a need for self indulgence. Most are not captains of industry and those politicians who are partners in industry are often the same caught in the trappings of the revolving doors between government and big business.    

When applied to finance - the self proclaimed “wealth creators” make reference to her books and recent films to ride on her coat tail of “theories“ to validate how the Free Market should be left alone to sort itself out naturally by market forces. Ayn Rand clearly specifies that under her laissez-faire Capitalism the private sector should be rid of Government intervention and in her words - “Rockefeller is hardly an example of Capitalism”. What we observe is the opposite, not only has government intervention saved failing corporations and Banks but the Free Market itself is guilty of high frequency trading, inside information and market manipulation in a casino style frenzy.

Clearly, what we do see is corporate interests taking over politics, writing law and getting to big to fail. It picks and chooses what ideas and agendas to push whilst excusing themselves from responsibilities at the same time. Another topic Ayn Rand advocates is independence and the ability for private multinationals to self-regulate - with a consciousness. Well, that is an utopia as corporations single motif of operation is profit over any other principle, of fairness and level playing fields. Corporations without regulation will certainly be violent and impose great gaps in social and economic benefits between the ones at the top and those below. Ayn Rands condemned the initiation of force as immoral but corporations have grown smart at hiding externalities. So, this Ethical-Egoism as a principle defined by Ayn Rand is often assimilated by multinationals without the Ethical prefix. Yes, Ayn Rand disregarded God but also today’s many atheist scientists, which is a shame, as so much of which cannot be explain resides in the real of metaphysics.

Ayn Rand favours Reason, acknowledging that wealth creators need to be recognised as a force for good while rejecting altruism and Collectivism. She is critical of most philosophical traditions, except for some Aristotelians and classical liberals. Although, she has used the word Ethical, she is also known for inferring pejorative references to those said of “inferior intellect” leading us to deduce that Ayn Rand theories may have  overtones from Eugenics.

Self-regulation does not work if the rules to keep it regulated are systematically removed, such as the Glass-Steagall Act and the Bank Holding Company Act 1956, which separated banking, securities and insurance. We also see market interests lobbying on other regulations deemed to be trade irritants. It is then bluntly obvious to anticipate that when banks and multinationals are left to their own devices in an unregulated free market, someone else ends up paying for the losses while white collar brigands run away with the loot. The philosophy of Collectivism rejected by Ayn Rand, stresses the importance of cohesion within social groups and often puts the focus on community, society, nation or country. On the other hand, Individualism, promoted by Capitalism sold on the merit of its self-creative attributes, such as "the right of the individual to freedom and self-realization" accepts no controls on free enterprise advocating that interests of the individual should achieve precedence over the state or a social group, while opposing external interference upon its own interests by society or institutions such as the government. In my view it´s exactly this limitless blank cheque that has made possible for disproportionate corporate pay and in many cases elevating the “Wealth creator” to a state of “god like magician”, transforming paper into gold, betting against the very same clients it sells his products to, at the expense of any social cohesion with society and country.

We can only imagine what laissez-faire Capitalism may have looked like, so on balance, with the current Cleptocratic Capitalism even when The People win (the People as the tax payer as the stake holder), there will always be an "overseer" of some kind that is always ready to steal their gains. As Robert Anton Wilson once said - "Evil is always better organised than Freedom." and added “Taxation is robbery based on monopoly of weapons” - financial weapons of mass destruction.

A partial catalogue of wrong-doings.

1992 - Conspiracy to mislead the markets against four City advisers who stood trial over the result       of the 1987 pounds 837 million Blue Arrow rights issue. launched to finance the company's         takeover of the larger American employment agency Manpower by secretly buying shares            themselves to raise the take-up level announced to other investors.

2008 - Gordon Brown puts £37 billion loyds RBS, Lloyds TSB and HBOS.  

2008 - Barclays SCM and investment management for the middle east taking money from the            ruling families of Abu Dhabi and Qatar´s sovereign wealth fund which later lead to Augustus           Funding LLC and US bank Wachovia, Structure Capital Markets goes on to claim the same            £94 million in tax twice.

2008 - Barclays private equity group, Roger Alan jenkins at Structural Capital Markets scandal.

            Roger Alan jenkins developed tax analyses that lead to fraud and tax dodging.

2009 - Taxpayers exposed to £200 bn in losses under the biggest Government bank bailout.

2009 to 2012 - Bank of England (BoE) QE1 £325 billion and QE2 £50 billion money printing.

2009 - RBS £25 billion corporate tax dodging.

2010 - Directors of an aviation business that crash landed owing HBOS £113 million.

2007 were allowed to buy the business back from administrators PriceWaterhouseCoopers for an         initial consideration of just £7. A few months later they paid an additional £49,999 but were       unable to pay the additional €10m they were supposed to pay by February 2008 to secure          ownership of the most profitable subsidiary, a Germany-based aircraft maintenance company.          The administrative receivership enabled the directors of Corporate Jet Services to avoid paying         millions of pounds to unsecured creditors, including airplane lessors and Her Majesty’s Revenue         & Customs. HBOS was surprisingly forgiving, writing off £60m of CJS’s outstanding overdraft          of £81 million in March 2008.

2012 - £13 tn hoard hidden from taxman by global elites.

2012 - Barclays fined £290 million for deliberately fixing the LIBOR rate, under Bob Diamond.

2012 - Provisions made for PPI compensation: RBS £950 million, Barclays £1.3 billion, HSBC £40            million, Lloyds £ 3.6 billion, santander £550 milion.  

2012 - Cornwall terrance, London property tax dodge where £25 billion went offshore.

2012 - George Osborne £100 billion liquidity boost.

2012 - Barclays, HSBC, Lloyds, RBS banned by the FSA from selling interest rates hedging               products/derivatives to SME.  And £10 billion in PPI miss selling.

2012 - $300 million UK-based Standard Chartered bank for violating us sanctions

2012 - HSBC signs a deferred prosecution agreement for breaching the US secrecy Act, the trading            with the enemy Act and assorted money laundering offences. HSBC pays £1.2 billion in            settlement fines for money laundering

2012 - George Osborne £80 billion funding for lending operated by the BoE.

2013 - Lloyds Bank fined £28 million for selling worthless products. Pushing staff to breaking point             to meet sales targets o face losing their jobs. Lloyds has set aside £8 billion for miss selling             loan insurance and £400 million for miss selling interest rates swaps. Lloyds was also fined             £1.9 million and handed a £100 million compensation bill by the FSA for miss-selling             principle bonds". One million products sold to 700,000 customers between 2010 and 2012.

2013 - Barclays £28 million fined for anti-competition practices. Also avoids £500 million in taxes.

2014 - HBOs, "growth at all costs" cost £47 billion to the tax payers under Sir James Crosby, who             later resigned to take a job as deputy chairman of the FSA.

           Risk regulator Paul R. Moore blew the whistle to the treasury select committee in 2013 and            James Crosby stripped of his nighthood resigned yet again.

2014 - Guardian Care Homes (GCH) settled out of court following legal action seeking

           compensation for its products based on Libor subject of manipulation by Barclays.

          Legal action concerned interest rate swap arrangements worth £70 million - after an            agreement to restructure its debt.

2014 - RBS, Global Re-Structuring Group (GRG), account irregularities, company asset stripping,            sell-off to vulture funds and use of off-shore tax structures. Investors defrauded on many            accounts, including systemic and institutionalised financial duress and loss of trust, run from            the top down.

2014 - Mis-selling of CPP's Card Protection and Identity Protection policies between 2005 and 2011.

            The total cost to the industry has been put at up to £1.5bn.

2014 - Gold fix manipulation waiting to surface…

Succeeding governments have been incompetent to the issue surrounding the creation of money - fractional reserve banking. So in trance with privatisation, capital markets and its abyss of growing sovereign debt, securitization, rehypothication, hedge funds and vulture funds. On one hand political leaders hope to appeal to the average person and on the other give Wealth creator’s every excuse. There’s Nick Clegg, a Banker´s son, the third of four children of Nicholas Peter Clegg, CBE, chairman of United Trust Bank. Then we have a Rothschild´s connection via David Cameron, who descends from William IV but the family's banking history goes back even further, to the 1860s, when Sir Ewen Cameron joined the industry. He later helped the Rothschild banking dynasty sell war bonds during the Russo-Japanese war. We must say no to debt-money issued by private Banks.

“The bank has all the benefits of the money it creates out of nothing.” - William Paterson, BoE 1694

“The banks can and do create money and those who create the credit of the nation direct policy of governments and hold in the hollow of theirs hands the destiny of the people.” –  Reginald Mckenna 1915, chancellor of the Exchequer, chairman of the Midland bank.   

Andrew Rawnsley a BBC journalist once asked: "Do you know how much bailout are we in for?"

Vince Cable MP replied - “I wouldn’t say infinite but it´s getting there”.

Former Labour minister Hazel Blears replied - “I don´t know the absolute global figure”.

Boris Johnson criticized ministers for targeting the banking industry with excessive regulation, which would be counter-productive. – independent 23/07/2012  


End of article

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