Why am I even surprised, oh wait I’m not, I’m just disgusted-
Britain’s high street banks have raised billions of pounds in funds through complex financial deals that use supposedly charitable trusts which are not donating a penny to good causes, the Guardian has learned.
Last week it emerged that Northern Rock had raised £71bn through a Jersey-registered trust called Granite, which issued a prospectus that told potential investors: “Any profits … will be paid for the benefit of the Down’s Syndrome North East Association (UK) and for other charitable purposes.”
Down’s Syndrome North East, a small charity run by volunteers from a semi-detached house on the outskirts of Newcastle, was told nothing about this and did not receive any money. During the period that Northern Rock was using its name to raise billions of pounds, volunteers were raising a few hundred pounds through sponsored slimming and cycling tours, and primary school children donating similarly small sums.
There was confusion at the NSPCC when the Guardian told the charity that for the last five years it had been the named beneficiary of a £47.9bn trust, with officials saying they could find no record of ever being informed of this by the Halifax.
Abbey said it had donated £30,000 from earlier wound-up trusts. Abbey currently raises funds on the back of home loans worth £40bn.
Oh Abbey you generous bastards, bet they ate a lot of cake with that. And here we are bailing out Northern Rock, note bailing out, not actually getting ownership for all the money. Frankly if we are dumb enough to buy The Church of the Free Market scam we really shouldn’t whine at the disaster they are walking us into. Still at least ties make a handy ad hoc noose.