It seems that the Bankers are still lining their pockets and this time they have rowed in regulators and law makers from the House of Lords.
Lord Levene, the chairman of the Lloyds insurance market, is to create a new high street bank to be floated on AIM and initially funded by £50m from City institutions including Invesco and F&C. The bank will then issue shares to gain more funds and expand rapidly to acquire other businesses including Northern Rock’s state-owned “good bank”. Not the bad one, mind you, that is to be left for the tax payer.
I heard Lord Levene on the radio a week or so ago who said that he considered that the High Street banking business could do very well but an article in The Independent newspaper quotes Neil Saunders, of the DataMonitor consultancy, as saying “All banks face apathy in terms of switching behaviour….It takes an awful lot to get people to change bank.”
No problem, Lord Levene has thought of that and plans to simply buy up the 600 branches that Lloyds Banking Group had been ordered to sell following its state rescue.
Lord Levin obviously spotted the chance to make some money as did half the regulators and House of Lords.
One has to wonder who it was who decided that Lloyds should be ordered to sell the 600 branches and whether any of those involved in Lord Levine’s new bank had any involvement such as the “non-executive directors” of the new bank Sir David Walker (former official of the Treasury and Bank of England and deputy chairman of Lloyds bank), Lord McFall (chaired the House of Commons’ inquiry into the banking crisis) or Charlie McCreevy (former EU commissioner). Presumably these honourable men merely spotted a chance which came about coincientally following thier decision to force Lloyds to sell its branches. One can imagine them around the board room able: “Buy up the 600 branches? By Jove, never thought of that!”
The article in The Independent says that “executives will be appointed after the flotation”. It seems odd to wait until after the flotation to appoint executives but perhaps the new bank will be such a money spinner that they could employ any old fool to run it. If past performance is any indicator of future results then they probably will though it is not known if Sir Fred is still available.
Lovely Jubbly as del boy would say.













Wonga – greedy and irresponsible lending
Tags: Gordon Brown, financial crisis, transfer money, same day, law of unintended consequence, Wonga.com, wonga, credt crunch, self certified mortgage, targeting young people, booze, 2689% APR, greedy and irresponsible lending, regulators, Balderton Capital, Greylock Partners, Accel Partners, Dawn Capital, quick loan, fast loan, easy money, get money fast, loan, loans, winga review, wonga advert
Wonga
Remember when it used to take five days to transfer money from one account to the other? Remember all the irritated letters to TV and radio consumer programs? In 2009, the banks finally got their act together and it is now possible to transfer money on the same day. A good idea? I’d say so. However the law of unintended consequence has now kicked in with the arrival of Wonga.com.
I heard about Wonga on the radio yesterday and later saw their advert on the London Underground. Wonga are a company who will give you a short term loan and provide the money in around 15 minutes. The application is handled using the Internet via your PC or mobile phone. The customer uses a simple “slider” to select how much money they want to borrow and how long they want it for. Presumably credit checks are performed automatically and, if approved, the money is squirted into the customers bank account within minutes. A good idea? I’d say not.
The world has only just gone through a financial crisis which broke all sorts of records in all sorts of ways. The blame has been placed firmly on cheap and overly available credit. The result has been to put the western world in massive debt to a totalitarian and undemocratic Chinese regime.
While the experts rake over the details the public are disgusted by the greed of the banks and the incompetence of the organisations responsible for monitoring and controlling credit risk. Even Gordon Brown, the British chancellor on whose watch Britain’s economy was flushed down the toilet, claimed that he knew nothing of what was going on. While the world and his wife knew that anyone could get a “self certified” mortgage by lying on their application form Gordon Brown knew nothing. One wonders whether Brown knows about Wonga. Does he know that Wonga are targeting young people? Check them out on facebook and twitter.
British young people have a reputation for liking their booze. Now we have a company which is allowing them to buy credit when they’re drunk. You’re out with your mates, you’ve been in the pub all evening and now everyone is off clubbing but you’ve run out of cash. No problem, pull out your mobile and click, click, click you have £200 dumped in your bank account. What’s not to like?
Well how about a typical APR of 2,689%
Wonga is the epitome of greedy and irresponsible lending and one has to ask: Are our regulators asleep or simply stupid?
Let’s be clear who is behind these greedy, irresponsible people. Wonga list the following Joint Venture partnerships amongst their investors:
Balderton Capital
Greylock Partners
Accel Partners
Dawn Capital
Here are the people behind each partnership. I encourage you to click on the link, view the thumbnail pictures and then Email these greedy and irresponsible people and tell them in, polite but firm terms, what you think about loan sharks. If you know them then disown them.
Balderton Capital
Barry Maloney
Mark Evans
Bernard Liautaud
Tim Bunting
Dharmash Mistry
Jerome Misso
Roberto Bonanzinga
Andrew Nutter
Harry Briggs
Rob Moffat
http://www.balderton.com/our-team/
Greylock Partners
Arvin Babu
Aneel Bhusri
Tom Bogan
Asheem Chandna
Charles Chi
Roger Evans
Isaac Fehrenbach
Donald Fischer
Bill Helman
Reid Hoffman
Bill Kaiser
Ivy Li
James Slavet
David Strohm
David Sze
David Thacker
http://www.greylock.com/team/team/
Accel Partners
Kevin Comolli
Sonali De Rycker
Bruce Golden
Harry Nelis
Jeremiah Daly
Spencer Lazar
http://www.accel.com/people/index.php?group_id=122000
Dawn Capital
Josh Bell
Norman Fiore
Haakon Overli
Chad Raube
Glen Drury
Dr. Arjang Zadeh
http://www.dawncapital.co.uk/welcome/our-team/the-dawn-team.aspx