argyrotsipi/train-dataset huggingface dataset:
Banking Misconduct and the FCA — House of Commons, 2018-05-10
Topic: Domestic Commerce
Alister William Jack (Conservative, Centre-right): I thank the Backbench Business Committee for granting this very important debate and I thank the all-party group on fair business banking for securing it. There are literally thousands of victims of this banking scandal. They are victims not of banks, but of bankers and their advisers who colluded with them—make no mistake about it This has not been a golden era for British banking and neither has the FCA covered itself in glory. It has presided over ad hoc redress schemes that are simply not fit for purpose. It has allowed banks to be judge, jury and executioner. It could learn from the best British regulator, the Takeover Panel. If one goes to the Takeover Panel for a decision on a Thursday, one receives it on a Friday. The FCA has allowed the banks to set up their own redress schemes, which have gone on too slowly for too long and have been too small in terms of financial retribution Victims have been fighting this situation for years. Their lives have been destroyed: it is not just livelihoods, some have lost or taken their lives. Families have been torn apart and businesses have been lost. Frankly, they have been the victim of banking piracy. I said that in the Treasury Committee yesterday and I say it again today. If the other banks have a pile six inches high, RBS-GRG has a mountain. It set up a scheme of £400 million. Some £100 million of that has been allocated to costs, leaving only £300 million to pay people back. It has paid out £150 million so far, but that does not even scratch the surface. GRG was a profit centre. In 2011, it made £1.2 billion in profit. Considering the profits it has made by knocking on people’s doors and taking their businesses away from them, £300 million is just scratching the surface. It is paltry and pathetic The fact that these crimes were committed is not something I am imagining. Excellent reports are available from Tomlinson and Promontory, as has been discussed. We knew crimes had been committed, but what the victims have not seen is any form of justice. I do not just mean financial justice. I mean prosecutions. For banking to clean up its act and for this not to happen again in the future there need to be more prosecutions In the first debate secured by the all-party group on fair business banking, I spoke of my own experience. I know at first hand how GRG behaved. I was not a victim. It came twice to try to take a very good asset away from us. The business was making a profit in each of the months when it came and it has made a profit in every month since. That did not, however, stop it trying to come up with artificial breach covenants and other trumped up reasons to try to create fees. I understand that people were under pressure. If they were not in a robust position after the financial downturn, they were, I am afraid, taken to the cleaners I will conclude by saying that the worst offender was RBS GRG. The perception is still there that it cannot be trusted to do the right thing. Proper redress for the victims would be a very good place to start.
Banking Misconduct and the FCA — House of Commons, 2018-05-10
Topic: Domestic Commerce
Giles Francis Watling (Conservative, Centre-right): It is an honour to follow the hon. Member for Cardiff West (Kevin Brennan). Let me thank the hon. Member for East Lothian (Martin Whitfield) and my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), along with the all-party parliamentary group on fair business banking and finance, for securing the debate. This is an incredibly significant issue. As we have heard this afternoon, it has affected many of our constituents, and one of my own, Julia Barrington-Fuller, has informed me that she has been caught up in this terrible episode I am here to support a motion that will ensure that if it all goes wrong, such victims of banking malpractice, who, by definition, tend to have limited financial resources, can have sufficient access to justice. I am also here to support a motion that will help us to learn the necessary lessons from this painful episode, while beefing up and altering the powers of the Financial Conduct Authority, which is not up to scratch. Above all, I am here to support a motion that will increase confidence in our financial system, in which small and medium-sized enterprises currently seem to have little faith, as they are reluctant to borrow from financial institutions. That, in turn, has a negative impact on productivity and growth, and anything that has a detrimental impact on the Great British economy is simply unacceptable It is clear to me that passing the motion would go a long way to deliver change by creating an environment in which some of our financial institutions are no longer able to abuse hard-working business owners. That is, unfortunately, what we saw in Ms Barrington-Fuller’s case. There have been clear examples of mis-selling during her dealings with the Royal Bank of Scotland. For example, she asked RBS for a fixed-rate loan in 2008, but was instead given an agreement that included swap protection for 10 years. That meant that her business was now fully exposed to interest-rate variance, leaving it with crippling monthly swap payments of £7,000 per quarter, on top of her loan repayments. Moreover, the continuation of the loan agreement was dependent on an RBS renewal after five years, which was then refused. As a result the swap agreement was broken, and the penalties for breaking that agreement were levied—penalties that Ms Barrington-Fuller was told did not exist when she took out her loan Those penalties and charges forced Julia Barrington-Fuller and her brothers to close their family business, while RBS is continuing to seek a repayment of £250,000, along with any moneys outstanding on the loan and six years’ interest. In her words, "these people are deceiving small businesses and ruining lives for their own personal gain."
Banking Misconduct and the FCA — House of Commons, 2018-05-10
Topic: Domestic Commerce
Jeremy John Elton Lefroy (Conservative, Centre-right): Does my hon. Friend agree that poor lending practices and the selling of interest-rate swaps, combined with no examination whatsoever—absolutely no redress apart from, perhaps, repayment of the cost of the swaps—has forced some of our constituents, such as my constituent Mr Steve Gray, to close their businesses?
Banking Misconduct and the FCA — House of Commons, 2018-05-10
Topic: Domestic Commerce
Giles Francis Watling (Conservative, Centre-right): I do agree, and that is why I am supporting the motion today. Julia Barrington-Fuller requested an agreement, but that was not the agreement that she finally received. We must have an inquiry into this misconduct; we must ensure that there is sufficient compensation for victims; and we must ensure that the Financial Conduct Authority is truly fit for purpose. We can only rebuild trust in our financial services by ensuring that institutions are held responsible in situations like the one I have described We hear too often about how our banks have been caught up in yet another scandal, the victims of which are not the bankers themselves but the hard-working people who rely on them to support their aspirations. People like Julia Barrington-Fuller and her brothers, who ran a successful business, are now struggling in circumstances not of their making. It is so disappointing that we are constantly revisiting this situation, especially in the case of RBS. This is a bank that the taxpayers paid £45 billion to bail out, and which now appears to be seeking to exploit those very taxpayers. It seems that the banks have learned nothing from the 2008 crash, an episode that Simon Jack of the BBC described this morning as "the biggest banking debacle in UK corporate history." Indeed it was. It would appear that, if anything, all that the banks have done is move from a period of selling risky products to a period of mis-selling. Banks cannot be allowed to conduct their business in that way What is, perhaps, more ironic is that the loan that Julia Barrington-Fuller and her brothers took out was taken out as a matter of convenience rather than necessity. I understand that they did not need it as such. However, because of RBS misconduct, it was not long before they were in serious financial trouble, which led to their being put into RBS’s Global Restructuring Group. GRG, as we all know, was supposedly there to deal with firms that were in financial trouble, but there was no attempt to rescue the firms once they were put there. Instead, it is alleged, its focus was on liquidating companies rather than supporting them through further prudent lending. That is not good for business, and not good for the country as a whole.
Banking Misconduct and the FCA — House of Commons, 2018-05-10
Topic: Domestic Commerce
Robert Alexander Stewart (Conservative, Centre-right): To be honest, I am surprised, if not shocked, that we are having to debate British banking misconduct in 2018. I suppose I must have been naive to believe for so much of my life that all banks, which I have always assumed to be pillars of the establishment, would deal properly, fairly and ethically with their customers. I assumed that one of their primary purposes was to help their customers to succeed in their businesses. It seems I was wrong in so many cases Equally, my eyes have been opened with regard to the Financial Conduct Authority. That body operates independently of the Government and its purpose is clear from its title: it is the financial regulatory body for banks in the United Kingdom and is supposed to ensure that they operate fairly as well as legally. But it clearly is not doing its job in the way it regulates how so many banks deal with small and medium-sized enterprises. The body is paid for by charging fees to members of the financial services industry. I am afraid that I must wonder whether that could sometimes influence the way it acts, or perhaps does not act, at least in some cases The reason I am speaking today in this debate is that the D’Eye family, all of whom are constituents of mine, have been hit for six by the Royal Bank of Scotland’s Global Restructuring Group and Dunbar Bank, owned by Zurich. From the story I have been told, Dean D’Eye and his family, and also his friends, have been terrorised by insolvency professionals working for GRG and Dunbar Bank. That is disgraceful. In my view, banks such as Dunbar and RBS, which have taken part in what I consider to be unethical piracy, must be brought to book. The FCA must play a much bigger part in doing this, rather than standing idly by We in Parliament have a duty to insist that loans and funding for our small businesses are regulated fairly, ethically and with sympathy for people trying to make a living and to boost our economy. We also need a mechanism to ensure that past wrongs are put right. To get all this, it looks like we may need a public inquiry. If that is the case, I fully support one being set up as soon as possible.
Banking Misconduct and the FCA — House of Commons, 2018-05-10
Topic: Other
Eleanor Fulton Laing (Conservative, Centre-right): Order. I am afraid that we must now reduce the time limit to four minutes. I am sorry for not giving the next speaker, the hon. Member for Mitcham and Morden (Siobhain McDonagh), any notice of that.
Banking Misconduct and the FCA — House of Commons, 2018-05-10
Topic: Domestic Commerce
Kevin Paul Hollinrake (Conservative, Centre-right): I thank the hon. Member for East Lothian (Martin Whitfield) for bringing forward this important debate. Like me, he is an officer of the all-party group on fair business banking and finance, which I co-chair. I also speak today on behalf of Jon and Kerry Welsby and others in my constituency who have suffered as a consequence of the apparent bank-induced failure of business services company Mouchel As the motion states, the problems in the banking sector are not restricted to RBS—I will offer evidence to the House later that will widen this debate—but I will deal first with RBS. It is clear that the senior management are directly responsible for what happened, but there are also serious questions that the regulator, the FCA, needs to answer, particularly about how it intends to hold these individuals to account through phase 2 of its inquiry and about the reasons for the fundamental difference in tone and substance between the conclusions of the full report and those of its summary. Its summary sets out its key conclusions, and although it identifies isolated examples of poor practice, it lists eight separate areas where RBS was cleared of blame before later highlighting areas in which widespread inappropriate treatment had occurred The full report, released eventually by the Treasury Committee some 15 months later, stated: "Our central conclusions are that there was widespread inappropriate treatment of customers by GRG", that "in a significant proportion of cases...we assessed" these businesses "as being potentially viable" and that "the treatment appears likely to have caused material financial distress…for the most part" as "a direct result...of the priorities GRG pursued."
Banking Misconduct and the FCA — House of Commons, 2018-05-10
Topic: Mixed Topics
Kevin Paul Hollinrake (Conservative, Centre-right): The hon. Gentleman makes a strong point. We should thank the Treasury Committee and its Chair for their work As I said, these issues are not restricted to RBS. Many will also be familiar with the HBOS Reading scandal, where former bankers and their advisers were jailed for a total of 47 years in 2017 for activities that took place over a decade earlier, prior to the takeover by Lloyds in 2008 I have recently been sent by one of those convicted, Mr Michael Bancroft—this was kindly facilitated by my hon. Friend the Member for Stratford-on-Avon (Nadhim Zahawi)—hitherto unreleased documents, including the Project Lord Turnbull report, authored by Lloyds senior manager Sally Masterton, which alleges that senior managers within the bank were aware of the fraud prior to the takeover and the £14 billion Lloyds and HBOS rights issues, yet they took clear, deliberate and documented action to conceal it. Let us be clear: if this is true, it could potentially make the rights issues and the takeover fraudulent. Those named as culpable for non-disclosure in the report include chief executive Andy Hornby, chairman Sir Dennis Stevenson, former CEO James Crosby, corporate CEO Peter Cummings, and the auditors and reporting accountants, KPMG. The all-party parliamentary group will have a full copy of the report and Members will be given access to it. Status, seniority and background cannot be a barrier to justice or to holding to account those who are ultimately responsible for the devastation caused to so many lives and to the wider economy.
Banking Misconduct and the FCA — House of Commons, 2018-05-10
Topic: Domestic Commerce
Kevin Paul Hollinrake (Conservative, Centre-right): They should certainly be included in the wider investigation, which is what I will call for shortly The Project Lord Turnbull report raises significant questions. Was there deliberate concealment of the scale of the fraud within HBOS and Lloyds? Who was party to the concealment? Crucially, did the concealment result in significant loss to bank shareholders and to subscribers to the rights issue? We see conflicts of interest in the report and in many other places. They include the auditors, KPMG, giving HBOS a clean bill of health in February 2008, only a few months before its collapse; the audit watchdog, the Financial Reporting Council, seeing no reason to investigate this audit; and the fact that four of the 10 members of the FRC board are partners at KPMG and that it is chaired by former Lloyds chairman Sir Win Bischoff, who oversaw the £14 billion rights issue Our all-party group sets out clearly what steps we now need to take. We need an investigation into the serious concerns raised against Lloyds and HBOS. The FCA must build a reputation as a regulator that acts without fear or favour. We need a new primary dispute resolution mechanism, potentially in the form of a financial services tribunal, which also sets aside the statute of limitations. We need a review of the structure of our financial crime agencies in the light of the evidence now before us to ensure that our system of justice is fit for purpose. Finally, the only way in which we can resolve the deep-seated cultural problems in our banking sector and remove the conflicts of interests that are so prevalent is by way of a full public inquiry.
Banking Misconduct and the FCA — House of Commons, 2018-05-10
Topic: Domestic Commerce
Kevin John Foster (Conservative, Centre-right): It is always a pleasure to follow the hon. Member for Strangford (Jim Shannon), although we usually do this in Westminster Hall, rather than here in the main Chamber. It is also a pleasure to be called in this debate and to congratulate the hon. Member for East Lothian (Martin Whitfield) on securing it, as it gives many of us an opportunity to speak up for businesses that were so badly treated by their banks. At a time when these businesses needed support and a relationship that looked to the future, they instead found short-term attitudes being taken by their lender, offering them little, other than something they did not want or the opportunity to go bankrupt. It was pretty obvious what the outcome of those choices would be My involvement in this has been prompted by the case of Rew Hotels Ltd, which has a number of hotels in my constituency. The business is family owned, and they have been developing and running their service for many years.
Banking Misconduct and the FCA — House of Commons, 2018-05-10
Topic: Mixed Topics
Kirstene Janette Hair (Conservative, Centre-right): Does my hon. Friend agree that the recent section 166 report into the Royal Bank of Scotland’s misconduct was limited to only those cases from 2008 to 2013, which means that victims such as my constituent Mr Nigel Henderson, who was going through this from as early as the 1990s, does not have a voice?
Banking Misconduct and the FCA — House of Commons, 2018-05-10
Topic: Domestic Commerce
Stephen Charles Kerr (Conservative, Centre-right): My hon. Friend makes her point, which I will repeat: surely these business people deserve better. It has never been more important for the British economy to support small businesses; they are the engine for growth. We need to draw a line in the sand, provide redress for those still suffering as a result of bank misconduct and put safeguards in place so that this cannot happen again. If we are to learn anything from the scandals that have plagued the commercial finance sector, it is that we must look at the way that we treat our businesses. That is why I support the motion today, and why I reiterate my support for a full public inquiry.
Banking Misconduct and the FCA — House of Commons, 2018-05-10
Topic: Domestic Commerce
Kevin Paul Hollinrake (Conservative, Centre-right): The hon. Gentleman mentioned executives from RBS who are still earning large amounts of money within the financial services sector. Is he aware that Nathan Bostock, a senior director within GRG, currently earns £1.6 million as chief executive of Santander and £1.8 million a year from RBS as part of his payoff?
Banking Misconduct and the FCA — House of Commons, 2018-05-10
Topic: Domestic Commerce
John Philip Glen (Conservative, Centre-right): I am grateful for that intervention. I am happy to clarify that the letter has been copied to the chair of the APPG and the Chair of the Select Committee, and I will make it more widely available There are already a number of avenues for SMEs seeking a resolution when dealing with their bank. Our smallest businesses have the Financial Ombudsman Service. I am of course aware of the "Dispatches" programme, and I have met the chief executive. The FOS is reviewing its operations and addressing the matters raised Where there are widespread issues, the FCA can ensure, and has ensured, redress through industry-wide or firm-specific redress schemes. Of course, there is also the usual legal process open to business, although I know this can be a time-consuming and costly process Since the last debate, the FCA has published a consultation paper on expanding the remit of the Financial Ombudsman Service, which would widen eligibility to include a greater range of SMEs.
Banking Misconduct and the FCA — House of Commons, 2018-05-10
Topic: Domestic Commerce
John Philip Glen (Conservative, Centre-right): I acknowledge the outstanding concerns of many people across the United Kingdom, and that is why I welcome the FCA’s consultation. It is my belief that widening SME access to the FOS is the right thing to do.
Banking Misconduct and the FCA — House of Commons, 2018-05-10
Topic: Domestic Commerce
John Philip Glen (Conservative, Centre-right): I listened very carefully to the case the hon. Gentleman outlined, and I recognise the challenges that the FOS has to face up to. That is why I welcome the FCA’s investigations and the FOS’s own investigation following the "Dispatches" programme It is important that the landscape for dispute resolution for SMEs does not discourage or inhibit the ability of banks and small businesses to resolve disputes between themselves in a satisfactory way, where possible. I therefore welcome the reviews being undertaken in this area by the APPG on fair business banking and finance—ably led by my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) and the hon. Member for East Lothian—and by UK Finance, as well as the Treasury Committee’s ongoing interest in this area. When the findings of these reviews are published, we will consider them carefully, along with the outcome of the FCA’s current consultation. In the interests of time, I will briefly conclude by summarising the Government’s position. It is right that we wait for the conclusion on GRG of the FCA’s investigation of the matters arising from its skilled persons report before determining what further actions need to be taken, and I reserve judgment on what they could be On dispute resolution more widely, we must acknowledge the existing avenues, including the work that is going on in terms of reviewing and enhancing the Financial Ombudsman Service’s provision. The FCA is progressing its work looking at the relationship between SMEs and financial services providers, and the APPG and UK Finance are undertaking their reviews as well. In the light of all the work going on, and the imminent conclusion of it, it is important that I consider that before we take alternative routes Once again, I thank all Members on both sides of the House who have raised very important issues on behalf of their constituents. I remain engaged to find a solution—a solution that works for all of them.
Libyan-sponsored IRA Terrorism — House of Commons, 2018-05-10
Topic: Mixed Topics
James Roger Cartlidge (Conservative, Centre-right): I congratulate my hon. Friend on securing the debate. Does he agree that it is very timely given the Attorney General’s statement earlier, which revealed—and it may be entirely justified—that a Libyan citizen who was wronged by this Government has received £500,000 in compensation?