The Guardian did another first rate article on securitisation yesterday.

As they showed, at least £234 billion of mortgage assets are held by twelve UK banks in securitisation special purpose vehicles notionally owned by charitable trusts.

And without exception those institutions agreed that those charities would not benefit from these arrangements unless there was a 'nominal surplus' left over when the securitisation arrangement was unwound at the end of its life. This is an abuse, as the Guardian noted in its leader.

But there is more to it than that. I've already written about the corrosive nature of the obvious duplicity built into the governance of these arrangements. But we now know for certain that these banks are also completely indifferent to these structures supposed charitable purpose.

The rotten core of the City of London becomes ever more apparent every day.