Is the myth of ethical banking finally being exposed?

Of course there can be no such thing as nice capitalism or an ethical capitalism it just doesn’t appear in the capitalist mindset. So it comes as no surprise to me that the Co-Op bank is finally selling out to the market not that there were against the market before hand just the way it works. It was even reported a few years back the Co-op had funded and invested in arms companies and other such dodge outfits. Ethical I think not.... "American hedge funds have forced the Co-operative Group to relinquish control of its banking arm in a deal that raises concerns about its ethical approach to business for 4.7 million customers. After months of intense talks with two US hedge funds, the UK's largest mutual – and owner of pharmacies, grocers and funeral homes – was forced to cede majority control in the bank as it battles to plug a £1.5bn capital shortfall. The latest twist in the attempts by the Co-op to stave off nationalisation of the bank means that the group, formed by the Rochdale Pioneers in 1844, will be left with a 30% stake when the bank is floated on the stock market rather than the 75% it had originally hoped for when the rescue deal was first announced in June. The Unite union's national officer, Dominic Hook, said the inability of the mutual to keep control of the bank was "a tragic day for the UK". He added: "This is dreadful for the staff, customers and the wider banking industry. This may mean customers will have even less choice on the high street and means we will have yet another finance company seeking shareholder returns over better banking." The loss-making bank was forced to admit it had incurred another £105m of losses caused by mis-selling products including payment protection insurance. Euan Sutherland, the former boss of the retailer B&Q who became chief executive of the Co-op in May, said the renegotiated deal was a good one for the group and its bondholders even though it had forced the group to redraw its original plan. "This is the first bank to be rescued and to survive as a standalone entity without taxpayer money," Sutherland said. But the dramatic change in the ownership of the bank, which is likely to take place later this year, led to concerns about cultural change in the bank, its future approach to its ethical stance and the job prospects of its 10,000 staff. It is also a blow to the government, which had been hoping mutuals would create vast new challenger banks on the high street. Co-op Bank had spent a year negotiating to buy 631 branches from Lloyds Banking Group before abandoning the ambitious scheme in April when its problems began to emerge. Sutherland's predecessor, the Co-op veteran Peter Marks, who led the proposed takeover of the Lloyds branches, will face questions from the Treasury select committee of MPs about when he knew about the losses in the bank. Many disgruntled customers of the bank took to Twitter, one saying: "Closing my account tonight after 23 years run by members for members you have let us down." Another said: "I think I'd rather you'd have taken taxpayers money than to sell out to Corporate Vultures!" The hedge funds that have scuppered the Co-op's original plans are known for their activism at troubled companies. Aurelius Capital Management, best known for forcing Argentina to pay out on its debts, and Silver Point Capital, linked to distressed groups such as Lehman, are thought to have amassed their stakes in the bank's bonds after it was downgraded to junk in May. They had been fighting for a bigger a stake in the bank and in convincing the Co-op to reduce the group's stake to 30% they are also taking bigger losses on their bonds. The bondholders are now expected to put £1bn into the bank – compared with £500m previously – while the Co-op will now inject less than the £1bn it had originally been stumping up to prop up the bank. Led by Mark Brodsky, Aurelius has been involved in debt restructurings as diverse as port owner Dubai World and the US publisher Tribune, owner of the Los Angeles Times. Silver Point Capital is run by two former Goldman Sachs employees, Edward Mulé and Robert O'Shea, and has a wide range of investments covering broadcasting – it bought two US TV stations out of bankruptcy – as well as car-makers and financial services and was involved in the bankruptcy of Hostess, the US food company best known for its Twinkies cakes. The Co-op Group is thought to be ready to make a concession to 15,000 private investors – who were "very elderly and vulnerable", it had been warned. It is expected to swap their bonds for new ones that continue to pay them regular income streams rather than handing those shares. Trading in bonds has been temporarily suspended. The precise details, which are still being hammered out, are likely to be revealed in the coming days. Sutherland said customers should not be concerned about the changing structure of ownership. The Co-op Bank has been a plc for some time but it is fully-owned by the mutual group which is now relinquishing total control." Article in today’s guardian http://www.theguardian.com/business/2013/oct/21/coop-group-bank-us-hedge-funds

The ruling class let their mask slip revealing who really runs the world

in this eye opening video on you tube
http://t.co/iQzsPYzR

a clip from the BBC news channel yesterday they interview a hedge fund invester to talk on teh global economic crisis. He reveals how the ruling class capitalists really see the world and who really has the power. He stated that there is nothing anyone can do about this oncoming crash and its going to be huge. Far bigger than 2008 and we must get prepared for this as people are going to loose a lot of money.

he went on to say when questioned what can governments do to give confidence to the markets. He replies that is a tough question. Fact is now none of the investers have any confidence in any rescue package and are dreaming of a recession as they see it as a way of making money.

The stark honesty of this guy tells us for the first time how the ruling class elite work and how they see a recession. They do not care about people or the destruction it may cause the social impacts only making money.

The guy goes on to say governments do not rule the world, Goldman sachs do. A very telling point i think as i think he is spot on. The governments do the capitalists dirty work making investing and making money easier. They really have no power at all when it comes to the running of their system.

I think as marxists we have known this for a very long time and have been warning people that this is coming long before others in the media caught on. This next crash is going to eclipse the 2008 banking crash. Whether we can recover or be left in a stagment flat economy with little to no growth for a very long time it remaisn to be seen. But it does bring back the point that all cuts need to be opposed limiting the cuts as some on the left seem to strive for will turn out to be fruitless and make no difference at all. We must oppose all cuts to jobs and services and look to push this system down. The working class when strong and organised is f ar more powerful. Class war is really kicking off and we must be ready for the fight of our lives. We simply cannot loose many are saying.

I'd recomend all to watch t hat you tube video though and just think what it really means and who holds the power. It is not government or the tories as you are told. They are just the puppets of a capitalist system ripping this planet and its people apart for what ? for money dirty filthy money and that is all they care for.

We need a different system a system based on peoples needs over greed and profit. A system of socialism where the wealth is not concentrated among a few but the many.

Join the fight today and resist wherever you can. THis is not just about the tories being incompetent thsi is far more than this now.