Mark Davis, from Brooks Macdonald Asset Management, warned pensioners back in 2004 of what he thought was an extremely dangerous scenario:
The situation in Spain however when dealing through unregulated advisers is much like the funds themselves; not subject to any form of regulation or approval and investors are not protected by any statutory compensation arrangements in the event of miss-selling.
The 2004 article did not have the benefit of hindsight nor can now be dismissed as the typical “I knew-it-all-along” rubbish: it was happening there and then but almost no one saw it happening! In fact, we can say that it was all just starting…and still he publicly warned of this very uncomfortable yet dangerous scenario.
Good for you Mark but shame not many people read your piece.
Perhaps that judge in Barcelona read it. You remember the one that recently indicted the CEO of a Spanish bank for fraud. As he said in his summing up, the writing was already on the wall when they sold the investment scheme and they should have been aware of it. I wonder how many of the banks sold similar schemes to the one stated in this article. One thing is for certain, Mark Davis of Brooks Macdonald Asset Management realised the danger and forewarned everyone of the risks. Now, I wonder why non of the banks Wealth/Asset managers never picked up this potential blip in the financial markets, OR did they but chose to ignore the fact. I suspect the latter. As Mark explained between May 2001 and December 2003 the fund grew by 26% or around 13% per year. What a great sales pitch this would have made with figures to back it up. We have to bear in mind that most of these fraudulent contracts were sold between 2005 and 2007, so the banks must have known that the crash was imminent, yet carried on with their rape of the ex pat pensioners. Strangely enough these equity release schemes with financial products have not been sold in Spain since 2008. Now that does make one think.
Is it any wonder why the banks are clamouring after Spanish Jurisdiction. They evidently feel, due to the lack of regulatory control by the Spanish authorities that they can get away with murder. Is it not time therefor for the Spanish to get a grip of the situation and start putting controls into place as they have in the USA & UK. Of course unlike the English courts, which monitor and set time limits in cases of litigation, the Spanish system is easily manipulated.
http://www.pbs.org/wgbh/pages/frontline/business-economy-financial-crisis/untouchables/were-bankers-jailed-in-past-financial-crises/
Another interesting article on the way the US Regulators have progressed in fining and jailing bankers responsible for fraud since the last financial meltdown in the US. At least the US has met the problems head on. We can only hope that the Spanish Regulators pick up the mantle and do the same. It is time that these Nordic Banks responsible for the mayhem created in Spain receieved the same treatment. The same of course can be said for the Luxembourg regime for harbouring the criminal element in the banks under their jurisdiction. Landsbanki being just one of these.