In October 2008, at the very height of the global financial sector insolvency crisis, HSBC made a very strange decision: They made a massive £214.2 million loan to a company called IPGL.
To get an idea of what was more normal practice for banks during the insolvency crisis and the post-crisis recession, consider the behaviour of the (majority taxpayer-owned) bank RBS which deliberately withdrew loans or hiked repayment terms in order to drive thousands of British companies into financial difficulties, and then used their Global Restructuring Group to close down the businesses and asset strip them for their own profits.
The RBS Global Restructuring Group destroyed 12,000 businesses in this way in what executives referred to in leaked emails as “the dash for cash“. After the scandal was exposed by the hard work of people like Neil Mitchell they’ve now had to set aside a £400…
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