While the Eurozone still remains in crisis and Cyprus has recently been added to the chaos in 2013. Under the British peoples nose, has been the Greatest British Bank Robbery in History.
All my life, I have battled with banks, but none more so than these last few years, where I have expressed continuous concerns to the Government, over Bank lending, to Small and Medium businesses. For the past three years, we have witnessed the Great British Bank Robbery of all time and in the history for the United Kingdom. But not only in monetary terms, but for employment and for a future as a Nation.
To put these real issues into perspective. In the great depression, the United States of America's GDP debt ration was 250%. When Japan collapsed and sunk into economic crisis, due to inflation and lack of growth in the 1990's, their GDP debt ratio was 400%. Today, in 2013 the United Kingdom GDP debt ration is over 900%.
The United Kingdom has the greatest debt crisis in all of Western society and since the collapse of 2008, where the Country bailed out the banks, especially Lloyd's TSB and RBS. The Bank of England has been robbed of a further 350 billion pounds and with more planned lending in the coming months.
It is without doubt, this is the Greatest British Bank Robbery in all history. Where the American Federal Reserve backed and lent to businesses and we now see the United States, emerging from recession and with continued employment. The American furnaces, are fired up again and manufacturing is roaring.
In the United Kingdom these past 5 years, the main banks have robbed the Bank of England, on a promise to lend, to small and medium businesses in Blighty. Instead of lending to small and medium businesses, lending has in fact declined. For the past 30 years, on average, banks have lent around 2% of their lending capacity. Now they are lending less than -2%.
So the Banks and Bankers have raided and robbed the bank of England to the tune of around 500 billion pounds. So what have we got for that. Well, the loss of over two thirds of all households names in our High Streets, that we have all come to know over decades. Over a Million youth unemployed, businesses closing on a daily basis in the 100's. Large plant manufacturing, or processing closing, such as refineries and steel works. More folk than ever in history taking part-time work, with a cut in hours and wages to keep their jobs. Where they cannot even afford to pay their basic bills, rent, heating, mortgages and using food banks, to eat.
In nearly 5 years, the banking sector has had further bailouts unofficially, by laying off over 200,000 jobs in the UK and putting these folk on the dole, at a further cost to the tax payer. Figures again, that run into hundreds of millions. All the while, the banking industry has reduced in size itself, manufacturing has not increased and retail as we all know, is just about finished in the UK High Streets.
So why have small and medium businesses not seen any of the money? There has been many claims by all the main High Street banks, that no businesses are requesting overdrafts and lending. But that is a complete and outright lie. The money has been used by the banks to modernize, pay hugh salaries, bonuses and continually fund branches and a flawed business model.
Small and medium businesses are desperate to do their bit for the UK economy, where they wish to expand and create jobs. Every day and week across the media, you hear of these stories where banks will not lend. The classic one of all must be where a small businessman, wrote to the Governor of the Bank of England, explaining his plight, and the Governor recommended a Scandinavian bank.
From our investigations, we have found that there is currently no regulation (Policing) or oversight for business funding and finance, in relation to the performance for commercial lending and overdrafts. All the main banks are constantly making every excuse why not to lend to small and medium business. If that fails they are expecting businesses and owners, to jump through hoops, with a series of onerous credit reference criteria's in the underwriting department. The Banks are also claiming that they are adhering to "Lending Policies".
We have investigated these lending policies, by speaking to the Financial Ombudsman, The Financial Services Authority and the Office of Fair Trading. We have been able to establish, that neither the FSA, or the OFT, regulate, or have any oversight, regarding Commercial Overdraft and Lending Policies. In fact, the lending policy that supposedly exists, when you make a complaint and receive a letter claiming it is policy. The written decision not to lend, accompanied with a brochure, from the Financial Ombudsman Services, is a complete fraud, as the polices are being made up by the banks as they go. At this time, there is no recourse, or accountability across any of our regulators for this area of banking.
Last week we wrote to the Secretary of State for Business Dr Cable MP, after speaking to the FSA and OFT. We also spoke to the Department for Business Innovation and Skills and HM Treasury, as we believe this to be both a criminal deception and a misappropriation of State funds!
Related Book: My England A Broken Nation by Alastair R Agutter
Written by Alastair