Merchant Bankers


What's the difference between The Banks and The Mafia.
The Mafia has a code of practice.

January 2009

Surcharging State Pensioners

It has now become common practice for utility company and Council Tax bills to include a hidden surcharge for their pension fund.
The fact that these pension funds have expanded at a criminal rate is due to the fact that they are unchecked and uncontrolled.
Just as MP's awarded themselves extortionate pension & wage rises, so do the local councils and utility companies.
The immorality of this fact is often confused by the fact that this government has overtaxed and destroyed many private pensions funds while increasing public service pensions.
What is often overlooked is that in our current contracting economy the pension apartheid is more wide spread.
And that it is the struggling pensioners, on state pension, who are being forced to pay for these inflated pensions.
It seems to me that it is indefensible to have state pensioners funding other peoples pensions.

In the future an unsustainable situation is likely to arise where the council tax or utility company will be confiscating pensioners houses who cannot pay the bill for their own extortionate pension scheme.

The relative cost of utility and council tax bills to the state pension is unsustainable.
The maths just does not add up.

25% Off Council Tax

In the current financial climate shouldn't the local councils cut the council tax.
How do they they expect the population to survive this economic downturn when they continue to waste all our money on frivolities and their own extortionate wages and pensions.
If everyone else has to cut back, then so should they.

Loan Guarantee Scheme

My personal opinion is that you can't save all of the banks.
Its just too costly.
Its also a waste of money if your trying to pass on investment to businesses.
because there will be a percentage (100% at the moment) loss as they refinance their own debts,
take out management costs & pay their own wages/bonuses/pensions/redundancies.
I know we'd all like to be able to go back to the old banking system but you can't.

The Cameron National Loan guarantee scheme is a brilliant idea but who will guarantee that the banks don't skim the funds as they have with every other financial service they provide.
Drastic action is required now, not next month.
Either use the Post Office to administrate the funds with the Inland Revenue.
Or nationalise one small high street bank.

You cannot 'save the world'
You cannot save the banks,
the stock exchange,
the public sector and the UK business economy.

You can save one and hope that will stimulate the others.
But it has to be the right one.
Get the loans freed up now.

December 2008


The Gambler

Prudence gambles his future and that of the of the country on a turn of the cards.
The "Financial Rescue Package" is his answer to 12 years of exponential spending.
Not to be confused with the last "Financial Rescue Package" (re-finance the banks ) or the previous "Financial Rescue Package" (Northern Rock)
or the current "Financial Rescue Package" (reflate the economy) or the next one (reflate the motor industry)
Give it six months and he'll be begging the IMF for help.
Gamblers never admit to their addiction.

October 2008 - Financial Meltdown


The National Debt

National Debt is 512 billion and is forecast to rise to 44% of GDP.
In 2008/09 the UK government will have to borrow 42 billion.
The real problem is that the government are concealing the true level of national debt.
The Institute of Fiscal Studies suggest that the true level of national debt is actually much higher.
This is because the government is currently excluding;
1. Public Sector Pension provision (unfunded 21Billion)
2. Private Finance Initiatives.
3. Guarantees for Northern Rock.
4. The State Pension Scheme.(unfunded)


Tax Rises

Growing public sector debt means that future taxpayers will end up picking up the bill.
Taxpayers will have to pay the interest on the debt and repay the outstanding balance.
This is a problem because the reduction in the ratio of taxpayers to pensioners will mean that government finances will be placed under increased pressure.
Even without Browns new bank bailouts & capital expenditure plans which will knock the countries finances into fairy land.


US Bailout

As the US tries to pass a bill authorising the $700 billion refinacing of its banks the American population are livid about having to bail out the rich bankers.
Normally no one would take any notice of this but there is an electction next month.
The politicians in the UK don't give a toss what the electorate think in between elections and continue to tax, spend and top up their own pensions.


EU fails to have its accounts signed off for the 14th consecutive year


The End of Western Capitalism

A historic turning point has been reached.
The west is ditching its faith in free markets and private enterprise.
(Times Anatole Kaletsky 12/09/08)


New Political System

September 2008

Now that the financiers have brought the world economy to its knees we need a new international political system to bring these errant economists under democratic control.
New international laws will have to be passed to regulate; financial services, the banks, insurance companies and the stock exchanges to stop multinational companies exploiting off shore accounts to avoid paying taxes and making fraudulent excessive profits..
Not to mention all those dodgy practices like surreptitiously moving customers money about, fraudulent management fees, and 'loosing' profits by buying and subletting their own office blocks to themselves. etc
Too long have these people been given the freedom to rampage the economies of the world for their own benefit.
Too long have the rich and the powerful abused & manipulated the laws that the general population have to respect.
They should have nowhere to hide, no safe havens for their excessive profits, no part should they play in the world economy if they steal, fraudulently manipulate, recklessly profiteer.
Every pound profit they make is a pound stolen from the electorate, every pound they steal is a pound stolen from Africa.
Every pound stolen is a pound wasted on over production and ecological destruction.
We cannot let these people cause havoc, then expect us to pay the cost, blackmailing us with the threat to take their companies elsewhere.
There is only one world, pretending you can continually exploit it for vast profit is the road to destruction and eventual extinction.

Bank Robbers & Robber Banks


September 2008

So what is it that makes robbing banks illegal & robber banks legal.
The law as administered by the FSA is failing but more than that, the fact that the banks are not governed by the criminal law system which governs everyone else makes the whole legal process fatally flawed.
How shop lifters land in jail for petty offences or pensioners are jailed for council tax default while bank fraudsters get paid bonuses is beyond comprehension.
This ancient anomaly goes back hundreds of years to the feudal Lords using the courts to rule the peasants.
But it is more than a change in law that is required. The structure of the selfish profiteering grab what you can attitude has to be changed for a community based ethos.
In any profit based economy there are losers. Is mankind to proceed as carnivores rampaging through the planet stripping all the food and mineral wealth from weeker nations subjecting them to our harsh brutalities.
Leaving countries to starve as we ponder the 50 varieties of yoghurt on the supermarket shelf. While an African familyhave to live on a kilogram of rice a week.
We cannot expect to solve all of the worlds problems but failing to think about the problem is leading us into a morally corrupt affluence that has no humility or humanity.
A small village that cares for its own & others is a template for others to follow.
A small town that cares for its own & others is a template for others to follow.
A small city, and then a small country, can all help in small ways leading to universal change.
But as long as the banks & the international companies hold the economy of this country to ransom
we will never be able to have a free democratic society or be able to even discuss helping the poor, the old and the starving.

Spanish Practices

Rumours are circulating that the Spanish owned Abbey's customers have had tens of thousands of pounds stolen from their credit cards without recompense.
The customer services department being 'unavailable' and the defrauded customers being charged interest on the stolen funds.
Abbey customers have also found their children's accounts shrunk by massive management fees and of course stock market losses.
So they have sunk to stealing childrens pocket money now
Obviously they didn't make enough from the with-profits guaranteed bond fraud.


The reason that GB has been unable to sort out the old age pension crisis is because the country is likely to be bankrupted by public sector pensions shortly so... whats the point?


ABBEY NATIONAL - Scottish Mutual Fraud 31/01/2005


With Profit Bonds (low risk)


The Promises

With profit investment plan
Low risk, no mention of loosing your capital
Guaranteed bonuses
Monthly payout of interest
Investment growth projected
Projected profit on capital of 4%, 6% 8% no mention of losses
Death Benefit
Average returns of over 10%
We don't apply MVA's if you die
You will be able to surrender the bond after 5 years without charge.

The Reality

20% loss on capital
MVA enforced to stop capital withdrawal (lose 20,000)
No monthly payout of interest (lose 10,000)
The company will continue to deduct management charges even though they have failed miserably.
Company blames losses on stock exchange when these bonds should have been in secure investments and not exposed to a full FTSE loss.
Recent FTSE rises of 12% pa have not been transferred to the MVA calculation.
You will not be able to surrender the bond without an MVA even if you die.

FSA. The Financial Services Agency

The FSA provides investment companies with protection from the law, none of these investment companies are covered by the laws of fraud & theft. They are protected by the FSA.
The FSA are supposed to be protecting investors but have no control over the daily operation of accounts. The service they provide appears to be designed to delay any action against the companies, to confuse customers and eventually, wear them down.
The FSA does Not work to protect investors from fraud, theft or bad management. It works on a very slender remit which is to supervise financial companies and push on disgruntled investors to the Financial Ombudsman.
The Financial Ombudsmen has an even slimmer remit. They only investigate complaints about mis-selling. So theft, fraud and juggling a few figures irresponsibly doesn't appear to be in anybodies remit.

There appear to be no restraints on these companies,

they just invoke the 9/11 stock market crash in 2001 and this lets them do anything they like.
There is something strange going on when the financial managers who earn over 100,000 annually, who have protected themselves with golden handshakes and gilded pensions, who boast of annual turnovers of 120 billion are actually nothing better than crooks.
They look down on their investors as sad losers who can't face up to reality.
They talk to them through highly integrated Customer Services departments that are specifically designed to keep their customers at arms length and solve none of their problems. They are completely obstructive & will not give positive advice to help their investors.
Just as long as the assets of the company are protected and the profits keep rolling in.

Bad investments are a problem for the investor not the company.

They will not help you regain any of your losses. They will not dig into their resources and repay their debt to you. A bad investment is like a bad memory, something to be buried. And that's what they do; they bury your account and your investment. It becomes a dead account & you become a non customer.

Customer Services are obstructive to investors.

Only you can remember how positive, efficient and enthusiastic the company was when they were setting up your account. Now everything has slowed down to a crawl. You want answers? You want your money back? You wait. You wait month after month after month. And still no help in sight.

I can understand that our financial institutions should be protected. As the backbone of our country they have the wealth of the nation in their hands yet their self regulation seems to have warped to the extreme. How can you have an investment that has no accountability?
How can you have a company that promises to pay you monthly interest payments & then looses 20% of the original investment.

Shop lifting is a crime, stealing millions of pounds of investors money is not

If it were indeed proved to be true that this investment had been managed with integrity and that unfortunately the funds had shrunk, it would be one thing. But the truth of the matter is, that the investors will never know, as no financial account is forthcoming.
In the absence of an account we must assume that this company's financial managers have been greedily gambling on the stock market, became overexposed and the investors paid the price.

Financial Corporations are a law unto themselves.

Or are they just outside the law?
Pity the government in twenty years time when all the half demented old age pensioners find that they have lost their money and their respect for law and order.
Especially those who have been caught not just once by endowment fraud or twice by investment fraud but thirdly by pension fraud.

These companies should bow their heads in shame.

They have failed their investors and locked up their capital.
As financial managers they have turned out a worse performance than any average person could manage. They have not only lost capital to the value of 20,000 they have lost interest to the value of 10,000 They have turned an investment of 80,000 into a 30% loss. Any building society or bank savings account would have provided 5% annual interest and no loss of capital. And not a sign of an apology or an explanation or what is likely to happen in the future.
In any other industry this would illegal. This would be theft or fraud. But they have the best legal advisors, Queens Council, unlimited funds (yours) and contracts that you have probably never read.
When the stock market fell after 9/11 these bonds should not have been affected. Firstly because as a low risk investment they should never have been at risk. Secondly because the exposure to the fall would not have been 100% and thirdly because the stock exchange has now recovered from that fall.

Footsie Surges to 32-month high

Over the past 12 monthes the index has risen by 13.8%
Over the past 3 years the index is down only 1.9%
Over five years the index fell by 18%


Companies that have failed investors in the past should not be licensed to sell new investments.
They should also not be allowed to advertise new products in the media.

Cornhill Endowments - Serious fraud

Cornhill Insurance are contacting their customers to warn of a shortfall on their endowment policies.
This shortfall is in the range of 43% of the "Assured" sum. Last year Cornhill gave no warning of any large deficits.
They told customers that projections would be sustained as long as the 6% growth continued.
In twelve months everything has changed.
Suddenly not only do the illustrated projections show a shortfall but they now say that policy holders need a 14% growth to attain their "assured" targets. This means that either the previous years projections were concealing massive deficits which the company was trying to make good, or that they have started using endowment funds to prop up the company finances.
They are blaming 9/11 and the stock market crash for the deficits.

PENSIONS - as a percentage of average earnings

Netherlands 100 per cent
Italy 83 per cent
Luxembourg 83 per cent
Greece 80 per cent
Portugal 80 percent
Germany 65 per cent
Belgium 60 per cent
France 50 per cent
Spain 50 per cent
Denmark 40 per cent
Britain 16.75 per cent

The Times 28/09/04

Stop Wasting our Money!


Stop wasting our money.
We pay taxes to the government, the District Councils, the European Economic Community, VAT, Car Tax, petrol tax, alchohol tax.
Every government employee has a secure job with holiday pay, paid sick pay, a pension, travelling expenses etc. What do they do? Take 17 days a year sick, six weeks holiday & then go on strike.
MP's claim expenses for their offices, they give themselves wage rises, plug the hole in their own pension fund and then increase it.
County Council employees all have highly paid sick allowances with six months full sick pay, six months half pay and then the option of paid redundancy with a cash payoff.
District Councils sell all the local Council houses for 100 million pounds and still put up the Council tax.
Teachers, policemen, firemen, civil servants, all at it with early sick retirement.
European Commissioners wallow in a gravy train of extravagance. The European civil servants get even more of our money.
What about the workers who have no sick pay, no pension, no redundancy, no job security. Do we pay less tax?
What are we, some kind of mugs? It's all our money.
Why is it that when a bureaucrat spends money on our behalf they spend it like water?
Lets have an inquiry - 20 million, Millennium dome, - 300 million, London Olympics - 30 million.
Ordinary working class people struggle to live on low wages and pay their taxes like good honest citizens.
Ordinary businesses have to make a profit, pay wages and account for every pound they make to the tax man.
Why can't government departments & councils be as efficient financially as a private sector business? Why aren't they accountable to us to provide an efficient and financially accountable service?
They are our employees yet they treat us like idiots.
Maxwell & the Mirror pension fraud has nothing on this lot.
What happened to the government pension?
All the money that tens of millions of people have been paying to the government for the last fifty years in the mistaken belief that they were sensibly investing it.
Ha Ha Ha. What a joke. And what does the government do? Nothing. It's not even an issue. Just silence.
Do we have accountants working on our behalf scrutinising how our taxes are spent? No, they're spending all they're time trying to squeeze more tax out of us or covering up some insurance fraud which they inadvertently authorised.

Kev The Builder



A fair amount has been written about what Peter Mandelson will enjoy when he arrives in Brussels: a lavish entertainment allowance, two chauffeurs, an almost tax-free salary and what must be the most generous pension in Europe. But Mandy is simply the most visible example of a system whose chief purpose is to look after its own. In the shadows behind him are tens of thousands of permanent staffers who enjoy similar privileges without any of the inconvenience of being in the public eye.

"Every month, I look at my payslip," an official told me the other day, "and I try to work out how my net salary can be so much larger than my gross salary." It seemed paradoxical, so I did a little digging. The first thing I found was that people who work directly for the EU institutions pay no national taxes. Instead they pay a special levy to Brussels, equivalent to a flat rate of 16 per cent. So whatever costs they load on to the rest of us through their spending programmes or their regulations, they won't be picking up the bill.

At the same time, they receive handsome bonuses. A British Eurocrat who works in Brussels gets an "expatriation allowance" equal to 16 per cent of his salary. One who stays in London while working for the EU is even luckier, with a weighting allowance of 39 per cent.

There is more: medical insurance, a pension of up to 70 per cent of final salary, a subsidy for every dependent child. Whatever the shortcomings of its member nations, no one can accuse the EU of failing to tackle Europe's demographic crisis. As well as offering a straightforward per-child dowry, Brussels pays for a string of "European Schools", open to the offspring of its employees.

There was outrage among staff a couple of months ago when, cowed by accusations of extravagance, the commission tried to withdraw its funding for these schools' ski-trips.
Best of all, it is almost impossible to lose your job. More than five years after the awesome sleaze scandal that brought down Jacques Santer's commission, not one person has been fired in connection with corruption. To be dismissed, you have to do something truly heinous, such as writing a book that criticises the euro.

Eurocrats have tenure, and know how to use it. Three quarters of the MEPs in the current parliament are new. Yet when we met for the first time last month, we found dozens of pieces of legislation waiting for us. These Bills have been drawn up by the parliament's secretariat, which will now steer them through with only minimal interference from Euro-MPs, who are struggling to find their way around, and who are in any case more interested in their electoral fortunes at home than in the detailed proposals before them.

It is often remarked that the EU is undemocratic, in that it is run by commissioners whom no one has elected. What is less widely appreciated is that even within the parliament, notionally the accountable bit, most decisions are taken by a permanent bureaucracy which regards the MEPs as an ephemeral nuisance.
It is Yes, Minister on a gargantuan scale.

Not that we should be surprised. Sir Humphrey realised long ago that Whitehall was a backwater. Brussels is where the civil servant enjoys real power, and a salary to match - and all without having to worry about public opinion. For 300 years, Europeans fought to establish the principle that law-makers should be accountable to the people. Now, without a whimper, they are throwing it away.

Copyright Daniel Hannan (Conservative MEP)

Insurance Fraud (again)


Did you know that when you ring up your friendly insurance company they now ask you for permission to use your information on an insurance database?
This, they say, may be shared with other insurance companies and their affiliated companies. (everybody)
This is their way of getting round the data protection act which is meant to stop people using confidential information for commercial advantage or profit.
If you had the temerity to object to them using your confidential information you would then be refused insurance.
So this is how the insurance companies plan to rig the policies of the future.
They will know everything about you from your estimated year of death, your hereditary illnesses, your criminal record, your credit rating. etc
So after stealing our mortgage endowments, and our pensions, they are now moving unchecked into data fraud.
Anyone like to buy a pension?

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