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UK regulators will be able to rip up bankers’ contracts

November 17th, 2009

Before You Invest

The UK government is set to bring in legislation that will allow the Financial Services Authority to rip up the contracts of bankers deemed to be enjoying excessive pay packets as a reward for risk-taking.

Although the new Financial Services Bill will not apply to current banking contracts and therefore will not affect 2009 bonuses, it is set to come into place from January next year.

The measures are to be outlined on Wednesday in the Queen’s Speech.

In comments reported by the Guardian, City spokesman Lord Myners told Sky News: “What we are saying to the shareholders and boards of directors is: get real, recognize that the previous levels of bonuses are socially unacceptable.”

Other proposals that will be put forward by Gordon Brown’s government include one that will allow British customers to take part in US-style class action suits against financial institutions they feel have treated them badly.

Last week, Mr Brown sent officials to meet with the IMF to lobby for the implementation of a Tobin tax – a levy on transactions carried out between financial institutions.

Posted in Finance Fraud

Tags: Boards Of Directors, British Customers, City Spokesman, Class Action Suits, Contracts, Financial Institutions, Financial Services Authority, Financial Services Bill, Gordon Brown, Imf, Levy, Mr Brown, Myners, Proposals, Shareholders, Sky News, Style Class, Tobin Tax, Uk Government, Uk Regulators

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EU proposes new bank ’super regulator’

September 25th, 2009

Before You Invest

The European Union (EU) is continuing with its plans to create a new ’super regulator’ for banks and other financial institutions operating in Europe.

President of the EU Commission Jose Manuel Barroso announced the proposals – which include the formation of a new European Systemic Risk Board – yesterday (September 23rd).

The move came ahead of this week’s meeting of G20 leaders in Pittsburgh and the EU said in a statement: “The European system can also inspire a global one and we will argue for that in Pittsburgh.”

Employees from the European Central Bank would be used to staff the risk board and the EU has also suggested forming three new regulatory bodies to oversee exchanges, the insurance industry and banks.

Mr Barroso remarked that the aim is to ensure the “dark days of autumn 2008″ do not happen again.

Last week, it emerged that the EU may force Lloyds Banking Group to sell its Halifax arm as compensation for the funding it was given by the UK government during the credit crunch.

Posted in Finance Fraud

Tags: Aim, Autumn, Banking Group, Banks, Credit Crunch, Dark Days, Eu Commission, European Union, Financial Institutions, Global One, Insurance Industry, Jose Manuel Barroso, Lloyds, Pittsburgh Employees, Proposals, Regulatory Bodies, Risk Board, September 23rd, Systemic Risk, Uk Government

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Dennis Hunter,captured now faces extradition back to the UK, where he is due to face charges.

February 6th, 2009

Before You Invest

Dennis Hunter, 58, hunted in connection with a major VAT fraud, which is thought to have cost the Treasury around £250m.The suspect, who featured in a top ten list of British police’s most wanted fugitives, now faces extradition back to the UK, where he is due to face charges.He is accused of being behind a massive ‘carousel fraud’ operation, which is said to have taken place between May 2001 and August 2003.
The crime – also known as Missing Trader Fraud – is costing European Union states billions of pounds a year.It occurs because cross-border transactions within the EU are zero-rated for VAT, allowing crime syndicates to exploit this and pocket millions.They buy goods from one member state, then add on VAT, and sell it on in another European country.The seller then disappears without handing over the VAT to the taxman.A House of Lords EU committee report recently warned that the crime had “risen considerably” in recent years because of the proliferation of high-value, low-weight goods like mobile phones.The UK Government estimates it was swindled out of £4.75bn in 2006 alone.It is not known where in Hungary Budapest-born Hunter was detained.Police had earlier thought he was hiding in the Costa Blanca area around Alicante.Crimestoppers and the Serious Organised Crime Agency issued a description of Hunter last year along with nine other fugitives they thought were in Spain.