Archives For HSBC

By Ranjan Kumaran @FinancialEyes

HSBC are being grilled by Margaret Hodge today at the Public Accounts Select Committee on tax and tax avoidance.

HSBC offshoot HICL, based “offshore” in Guernsey are significant owners of UK hospitals via PFI, with 43 projects under ownership based on 2013 Treasury data.

Margaret Hodge has stated that PFI has been a rip off for the taxpayer.

HICL are still based in Guernsey. Their business model is based on overcharging hospitals and avoiding tax.

The 2011 Treasury Select Committee found that: “Treasury could not tell us if PFI companies had paid tax in the UK on profits and on equity gains, or whether corporation taxes had been collected from PFI” [Richard Brooks – The Great Tax Robbery pg 222].

Two Hospitals, Central Middlesex and Chase Farm have since closed their A&E wards (end of 2013) as a result of unsustainable PFI debts.

In 2011 HICL was sold to its directors in a Management Buy Out.

Ex-HSBC directors continue to profit tax-free from UK Hospitals which have closed their A&E wards due to overcharging and lack of funding resulting from rip off HSBC PFI deals.

Click on the image below to see a list of HICL Hospitals.

 

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See attached 2010 HSBC – HICL prospectus by clicking here and offshore corporate structure diagram

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1) HSBC offers full page apology only for the least of their crimes

“They don’t mention all the tens of thousands of beheaded people in Mexico and Columbia. They don’t mention all those ripped off by all the Libor rigging, or all the clients they ripped off in the Forex scandal.”

Stacey Herbert

Max Keiser hits the nail on the head in this video, putting some perspective on the actions, treatment and non-punishment for years of mass criminal behaviour and financial terrorism at one of our largest banks, including the fact HSBC funded terrorist groups. The media has worked hard to shape the debate and limit our understanding of the gross injustice inflicted on the world by banks like HSBC. In the video, co-host Stacey Herbert highlights that the Department of Justice in the UK failed to prosecute and punish HSBC because of ‘collateral consequences’ suggesting they are too big to punish. However, Iceland has punished, sentenced and regulated their financial industries and guess what? Their economy has not collapsed, and their public are much safer.

2) Peter Oborne publicly resigns from The Telegraph over ‘fraudulent’ coverage

Political Commentator, Peter Oborne publicly resigned from The telegraph with this letter posted on Open Democracy where he accuses the Telegraph of having committed a fraud on its readers over coverage of HSBC.

 

Image: The Commentator

Image: The Commentator

From the letter:

“With the collapse in standards has come a most sinister development. It has long been axiomatic in quality British journalism that the advertising department and editorial should be kept rigorously apart. There is a great deal of evidence that, at the Telegraph, this distinction has collapsed.

“Late last year I set to work on a story about the international banking giant HSBC. Well-known British Muslims had received letters out of the blue from HSBC informing them that their accounts had been closed. No reason was given, and it was made plain that there was no possibility of appeal. “It’s like having your water cut off,” one victim told me.”

“When I submitted it for publication on the Telegraph website, I was at first told there would be no problem. When it was not published I made enquiries. I was fobbed off with excuses, then told there was a legal problem. When I asked the legal department, the lawyers were unaware of any difficulty. When I pushed the point, an executive took me aside and said that “there is a bit of an issue” with HSBC. Eventually I gave up in despair and offered the article toopenDemocracy. It can be read here.

“I researched the newspaper’s coverage of HSBC. I learnt that Harry Wilson, the admirable banking correspondent of the Telegraph, had published an online story about HSBC based on a report from a Hong Kong analyst who had claimed there was a ‘black hole’ in the HSBC accounts. This story was swiftly removed from the Telegraph website, even though there were no legal problems. When I asked HSBC whether the bank had complained about Wilson’s article, or played any role in the decision to remove it, the bank declined to comment. Mr Wilson’s contemporaneous tweets referring to the story can be found here. The story itself, however, is no longer available on the website, as anybody trying to follow through the link can discover. Mr Wilson rather bravely raised this issue publicly at the ‘town hall meeting’ when Jason Seiken introduced himself to staff. He has since left the paper.

“Then, on 4 November 2014, a number of papers reported a blow to HSBC profits as the bank set aside more than £1 billion for customer compensation and an investigation into the rigging of currency markets. This story was the city splash in the Times, Guardian and Mail, making a page lead in theIndependent. I inspected the Telegraph coverage. It generated five paragraphs in total on page 5 of the business section.

“The reporting of HSBC is part of a wider problem. On 10 May last year theTelegraph ran a long feature on Cunard’s Queen Mary II liner on the news review page. This episode looked to many like a plug for an advertiser on a page normally dedicated to serious news analysis. I again checked and certainly Telegraph competitors did not view Cunard’s liner as a major news story. Cunard is an important Telegraph advertiser.”

In this short video, Oborne explains how news judgements were made based on advertising partners which severely distorts journalism. This is why we need Real Media.

3)  Cameron takes aim at working poor and ‘unhealthy’

While David Cameron claims to be on the side of the ‘hardworking’ he quietly slipped through plans for a pilot scheme beginning in April targeting and punishing those in low paid or part time work.

It is important to bear in mind that Cameron has garnered an environment of low pay and insecure employment with record numbers of people in in-work poverty. The Prime Minister has taken steps to remove power and rights from employees, and give more to employers. This allows large employers to exploit desperate workforces, keeping them on poverty wages, while company profits are subsidised by the state when topping up low pay. And for this, Cameron now plans to make the lives of employees even harder with the kind of bureaucratic delays, sanctions, punishment and hardship which halt people’s ability to function or get on in society.

“One change in particular threatens to scupper Cameron’s claim to be on the side of Britain’s hard working people. In an alteration to legislation that went largely unnoticed at the end of last month, the government introduced a pilot for 15,000 low-paid working universal credit claimants. Those participating in the mandatory scheme may find that their benefits are reduced if they do not actively seek to work more hours or increase their salary.

“The change is important because this policy goes beyond targeting jobseekers, the sick and disabled. If penalises those who are hard at work, maintaining part-time, low-salaried jobs

“Labour peer Baroness Sherlock said in the House of Lords before the secondary legislation was introduced: ‘If you have been on benefits and you get a job, you do not expect the department to ring you up at work saying, “Come and talk to me because you’re not working enough”.

‘I think that people who feel that they have escaped the tender ministrations of the jobcentre are going to be a little taken aback when they find that it starts following them to work.’

“Sanctions can apply of claimants working less than 35 hours a week on minimum wage (typically £12,000 a year) who do not comply with the scheme. Failure may include failing to attend ‘job focused interviews’ or failing to apply for a job that might bring in extra hours. Welfare reform minister Lord David Freud says “tougher” conversations will be had with claimants after two months.

“For claimants, one of the most worrying aspects of the programme – called work related requirements – is that it can apply to housing benefit (technically the housing cost element of universal credit). That’s potentially a chunk of your rent lost to the DWP if you do not take active steps to get a better-paid job.”

Cameron also announced that benefits would be cut for obese people and addicts who refused ‘help’, pretending he was a moral crusader by condemning more poor people as moral failures who need to be punished.  Meanwhile, Tory Minister Lord Green is protected and rewarded by Cameron and his party, despite his chairmanship of HSBC during heinous criminal activity remarked on above. He cares so much.

Read more about this story here.

4) Universal Credit Fact Sheet

HuffPost shared this fact sheet on the bewildering Universal Credit system, just in case there was any lingering confusion on the flagship scheme which is now being rolled out nationally.

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(Fact sheet created for HuffPost UK Comedy by David Schneider and David Beresford)

Daniel Pacey, who was featured in the government’s own film about Universal Credit, has since spoken out about the ‘nightmare’ system which left him with no money for six weeks before his first payment, and ongoing problems and delays to his claim. Pacey warned that Universal Credit is likely to push people into hardship.

5) Firefighters strike this Wednesday

Firefighters confirmed plans for a 24 hour walkout taking place this Wednesday, over continued fights for pensions and disputes on retirement age.

The strike comes after fire authorities backed down on promises to not reduce pensions for those failing fitness tests over the age of 55.

The strike begins at 7am on Wednesday with many staff joining a Fire Brigades Union demonstration in Westminster.

Read more about this story here.

1) Thousands with degenerative conditions marked as fit to work in future by DWP

More than a third of people suffering from degenerative diseases such as Parkinson’s and Multiple Sclerosis, are being denied full Employment Support Allowance by the DWP. Instead, they are put into the Work Related Activity Group for those deemed likely to be able to work in the future.  People in this group also face threat of sanction for not attending sessions and may have these benefits removed after one year as an additional ‘incentive’ to find work. Steve Ford, Chief Executive of Parkinson’s UK said:

“These latest figures are an utter disgrace and serve to underline just how little the Government cares for those with progressive conditions like Parkinson’s. To set up a system which tells people who’ve had to give up work because of a debilitating, progressive condition that they’ll recover, is humiliating and nothing short of a farce. “These nonsensical decisions are a prime example of how benefits assessors lack even the most basic levels of understanding of the conditions they are looking at.”

This follows news that the UN is looking to investigate the UK for crimes against disability rights, in the first enquiry of it’s kind. Read more about this story here.

2) Britain’s Big Four Banks to announce £9bn profit for just three months


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In direct, stark and disturbing contrast to the previous story, where the treatment of the vulnerable is hardened under the banner of austerity, those who caused the crash and spurred on the government cutbacks are enjoying huge profits.

Britain’s big four banks, Lloyds, HSBC, Royal Bank of Scotland and Barclays, are set to announce a £9bn profit haul in three months.

While most made between £1.7 – £2bn over the summer, HSBC took the greatest leap with profits estimated at £3.7bn. Meanwhile, wages have dropped for the public for 71 of the last 74 months.

Read more about this story here.

3) People arrested for feeding protestors on Parliament Square

Two people have been arrested for giving water and food to a protestor at the Occupy Democracy camp in Parliament square.

A video emerged of a police officer confirming that anyone aiding a protestor who was sitting on a plinth at the statue of Winston Churchill, would be arrested.

http://c.brightcove.com/services/viewer/federated_f9?isVid=1

The Occupy Democracy camp which was set to take place over ten days has seen heavy police force, handling and also severe tactics of harassment in the shape of sleep deprivation both through the removal of sleeping equipment and through constant disturbances by police in a bid to wear protestors out.

Police have a duty to facilitate peaceful protest, as was always the aim of the camp. The treatment of protestors here in a relatively small group shows us the kind of democracy we have, or don’t have.

“I attended the TUC (Trades Union Congress) march on Saturday and I took part in UK Uncut’s ‘tax-dodgers bingo’. And I saw how at every Starbucks, Nero’s and Tesco on the march route there were police lining the shop-front. Who were they guarding? Whose freedoms were they protecting?

I saw how some of the protesters had been getting creative, transforming a tarpaulin into a banner that said ‘WE DIDN’T VOTE FOR FRACKING’. And I remembered again the truth: that we didn’t vote for Prime Minister David Cameron’s ever-desperate dash to drag remaining fossil fuels out of the ground in direct contradiction to our emissions reduction targets. That we also didn’t vote for changes to trespass law, or for the criminalization of ‘Occupy-style’ protests. We certainly didn’t vote for TTIP (the Transatlantic Trade and Investment Partnership set to curtail the rights of individual governments to stand up to transnational corporations). We didn’t vote for student fees, austerity and the cuts either. So, whose rights exactly is this government representing?

Considering all this, occupying a square opposite the seat of power feels entirely appropriate and necessary in response to such an ‘undemocracy’.”

Hannah Martin, New Internationalist

Read the full piece here.

Read more about this story here.

4) George Osbourne didn’t tell Cameron about £1.7bn EU bill

Cameron has been making a show of how shocked and disgusted he is to have been handed a £1.7bn EU bill to pay on December 1st. It made him really very angry.

Interestingly, Cameron found out about this bill on the way to a meeting with EU representatives on Thursday, despite Chancellor George Osbourne knowing about the bill since the beginning of the week.

Despite the PM being unable to contain his anger, he said he didn’t want to focus on the ‘Who Knew What Whens’ – which luckily for the Chancellor means he is entirely off the hook.

Strange, that the PM is so disgusted by a bill which all EU parties had agreed to, and which the Dutch had put money aside for. Stranger still that our PM is disgusted more by this bill than the continued borrowing and failure of the Chancellor to meet any targets in terms of cutting the deficit.

Read more about this story here.

5) Support for staying in the EU surges 

An Ipsos Mori report revealed public support for EU membership has surged to a 23 year high despite the rise in UKIP support.

“New polling from Ipsos MORI shows the majority of Britons would vote to stay in the European Union in a referendum, indicating the highest support for British membership since 1991, before the signing of the Maastricht Treaty which officially renamed the ‘European Community’ the ‘European Union’. Some 56% would vote to stay in the European Union, compared with 36% who would vote to get out; eight percent answer that they do not know how they would vote. This translates to 61% support for Britain’s EU membership and 39% opposing after excluding ‘don’t knows’. This is the highest support since December 1991, when 60% said they would vote to stay in the European Community and 29% wanted to get out.”

Image: Ipsos Mori

Image: Ipsos Mori

Read the full report here.

 

1) Sickness and Disability Benefit appeal costs reach £66 million

The cost of appeals against the ESA (Employment Support Allowance) has reached £66 million – 30% more than in 2009/10.

The figures came to light when shadow Work and Pensions Secretary, Liam Byrne asked the question in parliament.

The number of appeals have increased by 66% since 2009. Liam Byrne blames the increase in appeals and overturned decisions on the private firm used to carry out the Work Capability Assessment, ATOS. He said:

“Atos is now spinning out of control and it is costing the taxpayers millions to clean up the mess.

“The hard truth is that more decisions are wrong than ever before, and the result is more and more appeals and a price tag that has soared by 30 per cent in just the last year.”

ATOS are paid £150 million a year to carry out the fit-to-work tests

ATOS are paid £150 million a year to carry out the fit-to-work tests

Despite these statistics and the strong campaigning taking place across the country against ATOS, the DWP defends the firm and the decision process. They said:

“It is completely unsurprising that the number and cost of appeals has risen, because the number of work capability assessments carried out has increased substantially since we started reassessing 1.5 million incapacity benefit claimants in 2010.”

Adding that they had already made improvements to the assessment and that most decisions are upheld.

Read more about this story here.

2) GPs in South Wales told not to help patients appeal against fit-to-work decisions

GPs have been told to stop writing letters to help patients appeal against sanctions and benefit payment cuts, calling it an ‘abuse of resources’ and adding that ‘GPs were not contracted or resourced to provide this kind of service.’

Bro Taf, the local medical committee representing GPs says it stops doctors from seeing ill patients.

Some patients require evidence from their doctors to prove they are not fit to work. Without this evidence these patients may be unfairly sanctioned or be declared fit to work when they are not. Disability Wales called the decision “almost callous.”

Read more about this story here.

3) Iain Duncan Smith caught lying once again over homeless firgures

In an attempt to defend against criticisms of the benefit cap, IDS resorted to his old trick of fabrication by claiming that homeless figures had ‘hardly moved’ under the Con-Dem coalition.

The benefit cap which is limited at £500 a week for families and £350 for single persons, has been criticised for it’s ‘one size fits all’ approach.

A leaked letter from Eric Pickles’ office warned that over 40,000 people would be made homeless due to the benefit cap and the bedroom tax.

However, IDS told BBC News:

“The great talk about thousands being made homeless has not come true – the homeless figures hardly moved at all.”

Read more about this story here.

4) UK Uncut Protest takes over 13 HSBCs across the country

UK Uncut Protest 20/07/2013

UK Uncut Protest 20/07/2013

13 branches of HSBC were turned into food banks as part of a protest against the bank’s tax avoidance and use of tax havens, as thousands more Britons go hungry and rely on food banks in light of ‘unneccessary’ cuts.

“In Nottingham, activists set up a food bank blocking the entrance to HSBC with supplies of cereals, tins of food, and toilet paper. In London’s Regent Street, 100 activists brought bags of food to the store distributed the supplies, forcing the branch to close down. Meanwhile in Brixton a large crowd gathered and created a food bank inside the HSBC branch.”

Robert McGarr, from Northampton, said: “While families go hungry, this government of millionaires lets its friends in the banks and big business avoid billions of pounds of tax. HSBC uses more tax havens than any  other UK bank, but the government is only interested in punishing the poorest rather than going after the real cause of the problem.

“The government need to know that people want real change to stop tax dodging, not cosmetic tinkering, that’s why we’re taking action against the government’s failure to stop HSBC’s abuse of tax havens.”

After UK Uncut’s plans were announced the bank offered to meet to discuss activists’ concerns. However the bank rejected repeated offers from UK Uncut to hold a public discussion on 20 July.”

UK Uncut Press Release

See pictures of the protest and find out more here.

UK Uncut Protest 20/07/2013

UK Uncut Protest 20/07/2013

by Kam Sandhu @KamBass