MP condemns London bankers at Goldman Sachs and Nomura over Portugal deal and calls for curbs on interest charged to taxpayers
John Mann called the selling of swaps 'immoral'
A senior MP on the Treasury select committee has condemned the behaviour of some City bankers after The Independent revealed they had made tens of millions of euros of profit selling extremely complicated financial products known as swaps to public organisations in Portugal.
John Mann called for curbs to be placed on how much banks can charge taxpayer-funded entities for financial products.
He added: “These deals may not be illegal, but they are immoral.”
The Independent's investigation found that Goldman Sachs and Nomura had made huge profits selling the state-owned Metro do Porto bets known as “swaps” which the Portuguese civil servants had hoped would reduce the interest charges on a €126m loan. The swaps went so badly for the Portuguese that the Metro soon ended up owing more on the swap than the total loan itself.
Both banks declined to comment.
Mr Mann said: “The Financial Conduct Authority has placed limits on the total amount of interest and charges that consumers can be liable to owe payday lenders. It is time to look at similar regulations for the City - especially where taxpayers' money is concerned.”
Santander is in the middle of a High Court case in London over swaps it sold Metro do Porto that also ended up costing the state-owned transport group dearly. Santander is demanding to be paid what it is owed. Other banks agreed to a combined settlement last year with the Portuguese government for derivatives contracts including the one highlighted by The Independent. The government paid out approximately €1.5bn in the deal.
It also reached a legal settlement with JPMorgan over contracts it had with state companies.
- 1 The political parties aren't all the same – which means 2015 will be a 'big-choice' election
- 2 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 3 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
- 4 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
UK weather: Warning for more snow and ice as freezing temperatures and gales hit Britain
New York police shooting: thousands turn out for the funeral of Rafael Ramos
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Immigrants make UK racist, says Ukip councillor Trevor Shonk
Millions of Britons struggling to feed themselves and facing malnourishment
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...