How does it affect you? Well, American banks were forced to pay consumers back $25 billion in 2012. Our banks use the same dirty tricks as their counterparts and they just got caught out for the first time…well…on record, that is.
South Africa’s money system is a ticking time bomb that prints more money in economic downturns (which is why the interest rates have remained at a false low) and has consequently allowed the banks to flood us with digital loans backed by nothing. This isn’t the X-Files. Spend just a day of study and a scary light-bulb may switch on in your head. South Africa, like the world, is in deep trouble. There’s only so long you can abuse the financial system and rape the consumer before she fights back. The millions of uneducated, unemployed venting their rage is the worst nightmare i can imagine for me and you.
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Investec Bank may have just made a monumental legal blunder. Criminal action could be coming not just to their bank, but to all South African banks.
Senior Counsel for Investec, Dianne Fisher SC, specified in her heads of argument against NewERA that the Special Purpose Vehicles (SPV’s) used in the securitization process are “subsidiaries” of the bank. This point was argued in the High Court and, by divine right timing and divine right order, presiding Judge Baqwa confirmed this in his judgment.
Justice Selby Baqwa served on the Board of Directors of both Nedcor and Peoples Bank and he serves on the South African Reserve Bank’s Standing Committee for the Revision of the Banks Act. He knows banking inside out.
It is therefore confirmed, in the banks own words and by a High Court Judge, that banks own more than 51% of their SPV’s. They are supposed to be remote entities totally separate from the bank! Serious laws and compliance regulations have undoubtedly been broken, not least being the misrepresentation of the bank’s financial statements.
Hundreds of thousands of people are financially destitute because of monumental banking greed. When will the people stand up to them?
The full article is well worth reading: http://news.acts.co.za/blog/2013/05/judgement-opens-a-world-of-trouble-for-sa-banks.