NewERA take another step towards revealing nature of Securitisation

Judgement opens a world of trouble for SA banks

NewERA say that “Investec Bank may have just made a monumental legal blunder. Criminal action could be coming not just to their bank, but to all South African banks.

Senior Counsel for Investec, Dianne Fisher SC, specified in her heads of argument against NewERA that the Special Purpose Vehicles (SPV’s) used in the securitisation process are “subsidiaries” of the bank. This point was argued in the High Court and, by divine right timing and divine right order, presiding Judge Baqwa confirmed this in his judgment.

Justice Selby Baqwa served on the Board of Directors of both Nedcor and Peoples Bank and he serves on the South African Reserve Bank’s Standing Committee for the Revision of the Banks Act. He knows banking inside out.

It is therefore confirmed, in the banks own words and by a High Court Judge, that banks own more than 51% of their SPV’s. They are supposed to be remote entities totally separate from the bank! Serious laws and compliance regulations have undoubtedly been broken, not least being the misrepresentation of the bank’s financial statements.

Hundreds of thousands of people are financially destitute because of monumental banking greed. When will the people stand up to them?

Links:

1. The main article: http://news.acts.co.za/blog/2013/05/judgement-opens-a-world-of-trouble-for-sa-banks
2. The case documents, evidence and the Judgment: http://downloads.newera.org.za/May%20Hearing/ [Right mouse click on a file, then choose “save target as”]
3. NewERA’s legal advisor, Raymondt Dicks, explains the whole situation in an audio interview here: http://downloads.newera.org.za/May%20Hearing/Episode%207%20-%20Raymondt%20Dicks%20on%20Securitisation.mp3 [This file may also be downloaded from the above directory.]