This is an outrageous scandal:
“Phones4U was bought by the private equity house, BC Partners, in 2011 for £200m. BC then borrowed £205m and, having saddled the company with vast amounts of debt, paid themselves a dividend of £223m. Crippled by debt, the company has now collapsed into administration.
The people who crippled it have walked away with nearly £20m million, while 5,600 people face losing their jobs. The taxman may also be stiffed on £90m in unpaid VAT and PAYE. It’s like a version of 1987’s Wall Street on steroids, the difference being that Gordon Gecko wins at the end and everyone shrugs and says, “Well, it’s not ideal, but really we need guys like him.”
“This sort of utterly amoral screw-everyone capitalism has become much more prevalent in the last 15 years. Our financial elite is now totally out of control. They learned nothing from the crisis, except that the rest of us were stupid enough to give them a second chance.”
Source: Alex Proud Daily Telegraph 22 Sep 2014 http://www.telegraph.co.uk/men/thinking-man/11109845/Why-arent-the-British-middle-classes-staging-a-revolution.html
Sooner or later people will snap. You can only fool some of the people for some of the time. When the current debt fueled pseudo boom goes bust and we find that there is no way that ordinary people can bail out the financial elite yet again, all hell will break lose.
Rate fixing, money laundering, misselling of a wide range of financial products, sub-prime loans, credit default options, huge losses, continuing need to be bailed out by tax payers, illegal business with tyrants, forcing small and medium businesses to go broke, the list is endless. Here is a very small selection of the financial scandals of the last few years (remember virtually no individual has been reprimanded let alone charged for any of the crimes that have been committed – they just take us for fools):
10 Biggest Banking Scandals of 2012:
Barclays fined £38m for putting clients’ assets ‘at risk’: http://www.bbc.co.uk/news/business-29323483
Barclays, HSBC and RBS among 13 banks facing fraud claims in US: http://www.theguardian.com/business/2014/sep/16/barclays-hsbc-rbs-fraud-us-mortgage-virginia
The LIBOR scandal – The rotten heart of finance: http://www.economist.com/node/21558281
Help To Buy – the next big scandal / disaster??: http://www.reasonandreality.org/?p=2769
HMRC boss Dave Hartnett receives a life time achievement award for “Services to Corporate Tax Avoidance”: http://www.reasonandreality.org/?p=1610