Structured Finance, or a simple scam?
International banks organised a £191million bond for the Greek Government
when the rest of the country found out there was outcry. These revelations have
taken on a life of their own into a full blown financial scandal as the bonds
were bought by the state pension funds on the most unfovorable terms. Basically
giving the pensioners cash to the banks.
The novel excuse offered by one London banker was the pensioners should focus
their attention on the flaws in the system that allow a profit to be mae in this
way. This is sort of saying "you should have stronger bars at the windows or
expect to get burgeled" its still wrong whatever the shortcomings in the
system.
Due dilligence is required of the banks not only to ensure the product is
good for the recieving fund, but that the deal is understood in detail.