Research into Factoring, IRHP & EFG fraud reveals a banking sector wholly void of integrity resulting from and or exacerbated by gross regulatory failure. This begets an approach whereby security is perceived, not as the underpin of a transaction but (if realisable), as the source of its maximum potential profit. Such behaviour reflects the total absence of any concept of ethic, of any intention to deal “in good faith”.
Contrary to the Laws of Scotland, English Law does not presume “Ubirremei Fidei” to be the implicit underlying contracting principle. However, regardless of jurisdiction, it is an essential feature of transactions between proper parties conducted in a proper manner. As bankers are subject to “fit and proper” tests it should it not be assumed that banks pay some heed to their fiduciary obligations? How very wrong such an assumption has been proven to be even though it might be difficult to define “fit and proper” absent the intent to deal “in good faith”.
This weeks blog is from guest author Dave Glynn
Dave is the ex CEO of an investment bank and his views on banking standards are very much inline with the members of SME Alliance. He is also the guest speaker at the 6th November meeting in Bristol. It's going to be very interesting.
It is only in such voids that LIBOR rigging, probably the biggest fraud with the widest impact ever perpetrated, can be delivered, nurtured and brought to maturity unnoticed for nearly 25 years. And it is rigged LIBOR that is most certainly the driver of IRHP frauds perpetrated on sophisticated parties as well as on those many SMEs whose assets were identified as vulnerable strategic targets from the outset.
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