Is a bank defrauding its customers if it sells them a financial product based on a rigged index without explicitly telling them it is honest?
This question was at the heart of a David-and-Goliath battle that ended quietly last week, when the London Borough of Newham announced a settlement with banking giant Barclays over £238 million of restructured lender option borrower option (LOBO) loans. It was a victory for the council’s mayor, Rokhsana Fiaz, who campaigned for office on a platform of removing the burden of these and other toxic deals negotiated by her predecessor’s administration.
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[…] In the UK at least, that world has disappeared forever. The financial crisis happened, and sterling bond yields began their long march downwards to one per cent, a level reached at the end of 2021. For a decade, the embedded option was irrelevant, and councils seemed locked into unending loans at a high rate. Some authorities sued the banks, but their claims were either dismissed or settled before trial. […]
[…] In the UK at least, that world has disappeared forever. The financial crisis happened, and sterling bond yields began their long march downwards to one per cent, a level reached at the end of 2021. For a decade, the embedded option was irrelevant, and councils seemed locked into unending loans at a high rate. Some authorities sued the banks, but their claims were either dismissed or settled before trial. […]
[…] In the UK at least, that world has disappeared forever. The financial crisis happened, and sterling bond yields began their long march downwards to one per cent, a level reached at the end of 2021. For a decade, the embedded option was irrelevant, and councils seemed locked into unending loans at a high rate. Some authorities sued the banks, but their claims were either dismissed or settled before trial. […]
[…] In the UK at least, that world has disappeared forever. The financial crisis happened, and sterling bond yields began their long march downwards to one per cent, a level reached at the end of 2021. For a decade, the embedded option was irrelevant, and councils seemed locked into unending loans at a high rate. Some authorities sued the banks, but their claims were either dismissed or settled before trial. […]