Following on from Vedanta Hedging’s appearance on Channel 4’s ‘Dispatches‘ programme, looking into how the Banks had mis-sold derivative LOBO loans to Councils, we have recently been hearing more news on this issue, as reported by RT-UK.
In the video below, RT-UK discusses figures gathered by Debt Resistance UK looking at the percentage rates of council tax being used by councils to pay back these mis-sold LOBO loans; in most cases around 50% of all council tax expenditure all the way up to 80% for Newham Council.
Despite the recent news regarding Barclays Bank being the first bank to cease creation of LOBO (Lender Option Borrower Option) loans by effectively removing £8 billion worth through turning them into fixed-rate loans at a cost of £182 million, we still await news from other institutions such as RBS and others regarding their future stance on LOBO loans.
LOBO loans are long-term loans which contain complex structured derivatives. Vedanta Hedging has long rallied against these LOBO loans and in the past has even given live oral evidence to a Select Committee of MPs in Westminster regarding these mis-sold loans.
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