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.
Comments are closed.
Understanding bank equity trading books and VaR loss days
JPMorgan's securities financing book surged before the Jane Street loss
The Odyssey, AGI and the bicameral mind
How Japan is changing, in two charts
[…] 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. […]