You couldn't make this up in a month of Sunday's.
Lloyds TSB is using tax payer's money to buy a share in Porterbrook Leasing. Porterbrook still makes most of its money from leasing trains it bought from British Rail for next to nothing to our privatised rail network, which is one reason why fares are so high. Porterbrook has been owned by Abbey National for many years. Abbey is now owned by Santander of Spain, saviour of failed UK banks Alliance & Leicester and Bradford & Bingley. But now Santander looks to be in some trouble too. So a nationalised UK bank is buying back Porterbrook, only not for us, you'll understand. They're using UK taxpayer's money to secure the long term benefit for Lloyds TSB shareholders.
And it's still the same train on the 8.42 from Epsom to Waterloo.
The madness of PFI is apparent to everyone but Gordon Brown.
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That’s a shame. I’d like to see a re-nationalisation of the trains through the nationalisation of the banking system, but you’re right. The only people who’ll benefit from this will be tax payers.
Is there any chance of you mentioning what you have heard about Santander? I have searched the net and only seen praise that they didn’t get involved in buying derivatives.
They bought into Brazilian banking and that is hugely profitable with the public used to paying 70% p.a. for personal loans and 140% for credit cards. I am in Brazil at the moment and lending here has always been short term.
One intersting thing about mortgages here in Brazil is that the start at about 6% for loans of R$70,000 and go UP the more you borrow, to around 15%. Property prices in Minas Gerais are currently at levels of about 4 times annual salary.
I have money invested in Santander, so please, if you know something, let us know.
Many thanks, Sebastian.
SEbastian
Only what is in the linked source
Richard
Some few years ago, I had quite a correspondence with the Chairman of a large International Bank. This Bank was involved in a Rail PFI. with two other Banks. Each had put up a sum of £1Billion to buy rollingstock. This was then leesed to the Rail Companies but paid for by the Treasury, so the poor old Taxpayer again. At that time, it worked out that the return on the the Banks money amounted to £900,000. and a bit more, each year. What it meant for the rail passenger and the Taxpayer was in fact just about Fraud. For every £1. a Rail Passenger pays for a ticket, the Treasury and the Poor old Taxpayer stumps up another £10. Yes, thats right. TEN BLOODY £Pounds.
And on top of that, PFI. contracts sound quite reasonable, until you get to read one. For the NNUH. the estimated cost was £129. Million. The Building cost when complete was, £229. Then in 2006, we had the first Re-Financing of the PFI contract. This added another £116. Million to the cost. Total cost after the first five years, £435 Million. In addition to all this, there is a “Service Charge” paid yearly. And that is now £37.6 Million a year and is adjustable on a yearly basis. So, the term of this contract is from 2001 until 2030. Then another Thirty Years are the second part of the contract until the year, 2061, but remember, the whole thing is re-financed every five years and the yearly service charge will continue. In the end, the whole B****y lot will or could cost the Poor old Taxpayer anything up to four or even five BILLION £Pounds.
Enough for now, Regards, ATFlynn, “Norfolk’s Mutineer”
Copies of the contract available.