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In 2018, Vedanta Hedging worked with Mayor Rokhsana Fiaz prior to the Council issuing a legal claim against Barclays for LIBOR manipulation of complex LOBO loans.
These relate to £238m of LOBO loans sold by Barclays in 2007/08 before the financial crisis.
Although it has been a long and bumpy legal ride, just last week, a multi-million pound settlement was finally achieved against Barclays Bank.
This allows a substantial reduction in interest costs for the Council, which can then directly channel funds to the residents of Newham.
To read the Newham press release on this legal settlement, please click here
Vedanta’s assistance is in addition to the £143m saving negotiated on behalf of Newham in 2019 with RBS for the LOBOs sold by RBS to Newham. See here for more info.
While this legal settlement is interesting given the 2021 high court ruling, it does not automatically follow that this can be applied to all LOBOs, or former LOBO contracts. However, the desire for banks to reach an agreement on restructuring / premature repayments, either with or without a legal challenge, is part of a continuing trend which have also seen across other types of borrowers.
