Barclays removes its “lenders option” to increase interest rates on some LOBO loans. This is not “cancellation” and should not be viewed a victory for councils and housing associations. Debt Resistance UK would like to correct misleading reports in the media and the local government press regarding Barclays “cancelling” its LOBO loans, and this being interpreted as an unequivocally good thing for public sector borrowers. It is not. Commenting for Debt Resistance UK, Joel Benjamin said: “The idea Barclays has removed its “lenders […]
We are in a crucial moment for the campaign against #LOBOloans . For a short period of time during the summer, local residents have the right to object to their Councils’ accounts. This is an incredible opportunity for us to challenge the rent seeking corporations within the financial sector who are extracting wealth from our public institutions. During this period of the year called “period for the exercise of public rights” local residents can do the following: Inspect the Council’s […]
As reported in the Newham Recorder, a full council meeting at the town hall in East Ham on Monday saw the leadership reject further calls by councillors to reconsider the Council’s position on LOBO loans, backed by a public petition demanding legal action. But while the headline is factually accurate, what the Recorder failed to convey was a potential softening in the Council’s official stance on building a case against the banks that stitched them up.
It’s the time of year when the board members of large corporations brace themselves for a brief grilling from their shareholders during the annual general meeting. Debt Resistance UK has visited two of these carefully stage-managed events in the last few weeks. We borrowed shares, donned smart clothes and took the opportunity to pose questions to the two largest lenders of LOBO loans to UK local authorities: Barclays and RBS.
PwC, Barclays auditor since 1896 will be replaced by KPMG in 2017, pre-empting EU rules designed to foster competition in the accounting market, forcing companies to switch auditor every 20 years. At the London Borough of Newham, PwC is currently acting as independent ‘arbiter’ or adjudicator of the public interest, in the case of £563 million of Lender Option, Borrower Option (LOBO) loans, mis-sold by banks to Newham council. The leading lender with £250m of LOBOs is Barclays. Next door […]