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Like Savile homo druggie Flowers was protected by freemasons
Coop bank chief Paul Flowers and his rent boy
The latest revelations about homosexual drug dealing rent boy using reverend Paul Flowers is reminiscent of
the protection given to freemason paedo and BBC presenter Jimmy Savile. The masonic run Bradford council,
masonic run Charity Commission, masonic run church, masonic/zionist run Labour party and masonic run Cooperative bank all
protected this bastards crooked arse while he was getting away with murder.
The same thing was happening in Glasgow
city council with homosexual Labour leaders one caught using cocaine the other caught having homosexual sex in
a public place while covering Glasgow streets in homosexual
advertising especially gay adoption promotion. So why do Labour have so many queers within their ranks promoting
the homosexual agenda at every opportunity?
Easy to blackmail and in Flowers case provide the funding for their
election campaigns OR ELSE they get exposed for their dirty filthy deeds?
Expenses shame of Co-op chief: Flowers quit charity over '£150,000 false claims' yet was still put in charge of bank that loans millions to Labour
The scandal surrounding former Co-op Bank chief Paul Flowers deepened last night after it was revealed he quit a drugs charity over allegations of up to £150,000 in false expenses claims.
The Methodist minister – under police investigation for buying crystal meth and crack cocaine – was suspended by the Lifeline Project after allegedly lodging ‘significant’ false claims between 1992 and 2004.
The Manchester-based charity conducted a full investigation, but former Co-op chairman Flowers, who was its chairman of trustees, resigned before its conclusion.
Last night, charity chief executive Ian Wardle confirmed the Charity Commission was informed of the findings but it is not thought any action was taken.
Mr Wardle described the money as a ‘significant sum’ which required a ‘lengthy and thorough investigation’.
The revelations will only reinforce concerns that City regulators, the Co-op board and Labour failed to adequately investigate the past of the drug-taking minister who was once invited to Ed Miliband’s office for private talks.
As Labour insisted the affair was a ‘desperate political distraction’, it was revealed:
Labour had received more than £18million in ‘soft loans’ from the Co-op Bank – some at interest rates far lower than the deals the bank offers its own customers.
Two £1.2million loans were made to Labour by the Co-op and Unity Trust banks just weeks after the meeting in Miliband’s office.
Government sources said the bank will be the subject of an independent inquiry within days.
Flowers was made chairman of governors of a primary school after he resigned as a councillor when pornographic images were found on his council laptop.
Bradford City Council was under pressure after it emerged no one told Labour Party headquarters about the X-rated adult images.
West Yorkshire Police have searched the disgraced minister’s home in connection to the drugs allegations.
Flowers was last night still in hiding – three days after it was revealed he paid £300 for Class A drugs during a deal captured on film.
He lodged the expense claims during his voluntary tenure at the Lifeline Project – a charity providing services for those with drug and alcohol addictions.
A charity insider said Flowers claimed an astonishing £150,000 between 1992 and 2004.
Mr Wardle would not confirm the exact figure but said that Flowers had been suspended immediately when concerns were raised.
He said: ‘Trustees at Lifeline are disappointed to hear the news regarding Rev Paul Flowers this week.
'Paul Flowers and Lifeline parted company in 2004. When concerns were identified regarding Rev Flowers’s expenses, I took immediate steps with the assistance of Lifeline’s solicitor to suspend Rev Flowers.’
Mr Wardle added: ‘The Charity Commission was also fully informed of the findings of the investigation and the outcome. Rev Flowers resigned from his (voluntary and unpaid) position as chairman of trustees before our own internal proceedings could be concluded.’
The charity’s income is generated via public sector grants and local contracts and a variety of small local and specialist scheme funds.
In another development, it emerged that Flowers was made chairman of governors of a Yorkshire primary school after pornography was found on his council laptop.
He was given the prestigious role at Lidget Green School, Bradford, after he had resigned over the laptop incident in 2011.
The school said last night it had not been told by the council about the incident and had ‘no reason to believe’ he had resigned for reasons other than those he had officially stated.
This was that he had ‘increasing and competing demands’ on his time.
Flowers, who has been ‘suspended indefinitely’ from the Methodist Church, led the Co-op Bank for three years.
Earlier this week it was revealed that he used his Co-op email account to hire a rent boy for sex.
Ciaron Dodd said they met for depraved sessions in plush hotels – in rooms paid for by the struggling Co-op.
It has also emerged that Flowers was convicted of gross indecency in a public toilet with a man in 1981, but he was forgiven by the Methodist Church.
He admitted the offence at Fareham Magistrates’ Court in Hampshire, and was fined £75 with £35 legal costs.
WHY DID COUNCIL BOSSES HIDE IS GAY PORN SHAME?
Bradford Council was under fire last night after apparently failing to inform Labour Party headquarters of the gay porn found on Paul Flowers’ work laptop.
The former banking boss was allowed to continue with his high-profile role with the party even after resigning from the council in disgrace.
Flowers, 63, was confronted by council officials in 2011 after IT workers found the images while mending his computer.
He resigned immediately – but the official reason given was that he was leaving for family reasons and because of his high-pressured job at Co-op Bank.
Last night, it emerged that senior executives at the council were aware of the incident, as was the then Labour leader of the council.
But no one thought it was appropriate to make public the real reasons behind his departure.
Flowers was even appointed as chairman of the governors at Lidget Green Primary School, in Bradford, after he had resigned as councillor.
Last night, there was anger among councillors who said the public had a right to know what Flowers had done.
Councillor Paul Cromie said: ‘This looks like a cover-up. When Flowers resigned, there was a press release issued which said his workload was too heavy.
‘If the council leader knew the real reason at the time, then he should have told Labour HQ. It would have been his duty.
'I also think the electorate had a right to know – after all, they are the ones that elected him.’
The leader of the council when Flowers resigned was Ian Greenwood, who lost his seat to a Respect Party candidate in May 2012.
Before Flowers left, he said: ‘Paul is a tremendously gifted and committed individual who has made a significant and lasting contribution to the community in Great Horton, to the council and to the Labour group.
‘I will be sad to see him go but I fully understand the reasoning behind Paul’s decision.’
But despite his public praise, it now appears he knew about the porn – and chose not to make it widely known.
Councillor David Green, current leader of Bradford Council, said he did not know whether his predecessor had taken action.
He said: ‘I don’t know what happened at the time and I don’t know who was given information. If the Labour Party are saying that they weren’t informed then I have no reason to disbelieve them.’
A council spokesman said it was not considered necessary to alert Labour headquarters or the public because Flowers had not broken the law – just council rules.
The spokesman said: ‘It must be emphasised that this material was not illegal. In the light of the resignation no further investigations into how the material came to be on the computer were required.
‘It was a potential breach of the council’s internal policy.’
A Labour spokesman yesterday insisted Ed Miliband and other senior figures were not told why Flowers had been forced to resign from Bradford council, but did not deny that some MPs and shadow ministers may have known.
The spokesman said: ‘The leader of the Labour Party did not know, the shadow cabinet did not know. No one who could reasonably be described as being in a position of leadership knew about this.’
Mr Greenwood was not able to be contacted yesterday.
£80-A-HEAD DINNERS AND AN AUDIENCE WITH MILIBAND
Ed Miliband hosted dinners for disgraced bank chief Paul Flowers at one of London’s plushest restaurants, it emerged yesterday.
Labour sources confirmed that Flowers, then chairman of the Co-op Bank, attended two dinners at the Cinnamon Club as a member of the Labour leader’s elite Business and Industry Advisory Board.
The shamed Methodist minister was recruited by Mr Miliband in 2011 to advise him on banking reform, although it has since emerged he had no banking qualifications.
The dinners, in July and November of 2011, were both attended by about 20 Labour-friendly business people, allowing them extraordinary access to the Labour leader.
They are likely to have cost thousands of pounds.
The Cinnamon Club in Westminster specialises in modern Indian cuisine and is one of the most expensive restaurants of its kind.
A typical meal there could easily cost upwards of £80 per head.
Specials on last night’s menu included ‘spice crusted fillet steak of Wagyu beef with stir-fried baby morels and saffron sauce’, priced at £95.
The wine list includes a number of vintage bottles, such as a Chateau Latour 1959, which costs £3,130.
Glasgow city council homosexual Labour leaders Gordon Matheson and Steven Purcell
Glasgow City Council leader Gordon Matheson, 46, was apprehended by officers after they witnessed him carrying out a sex act in a car on the city's south side.
Cllr Matheson has been in a long-term relationship with civil partner Stephen Wallace, who was not the other man involved in this incident
while the previous leader of Glasgow City Council Steven Purcell had been questioned by police over his admission that he had used illegal drugs.
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Homosexual druggie Co-op banking boss quit Bradford Council after ‘adult content’ found on computer
Coop bank chief Paul Flowers and his rent boy
Former chairman of the Co-operative Bank Paul Flowers resigned as a councillor in Bradford two years ago after “inappropriate” content was found on his computer, the council has revealed.
Mr Flowers, a Methodist minister who chaired the Co-operative Bank for three years from 2010, was exposed allegedly buying and using illegal drugs in a newspaper sting at the weekend.
He left the council in September 2011, having served on it for almost a decade, citing personal reasons and increased responsibilities at the Co-operative Banking Group.
But a spokesman for Bradford Council said today: “Inappropriate but not illegal adult content was found on a council computer handed in by Councillor Flowers for servicing.
This was put to him and he resigned immediately.”
The latest revelations about Mr Flowers will heap further embarrassment on the Co-operative Group, whose long-standing chairman Len Wardle announced today he was resigning with immediate effect after he admitted “serious questions” were raised by the drugs scandal.
Mr Wardle, who has held the position since 2007, announced last month that he was due to leave next May but he said it was now right for him to go straight away, having led the board that appointed Mr Flowers.
Mr Flowers served as a member of Bradford Council’s executive from May 2010 to August 2011, when he stepped down from the post, saying he had “increasing and competing demands” on his time.
The following month he resigned as a Labour councillor for the Great Horton ward, having served on the council since 2001.
At the time, he said in a statement: “It has become clear to me that, over the longer term, I will be unable to sustain the workload associated with performing both roles to the best of my ability.”
Following Mr Flowers’s resignation as councillor, the then-council leader Ian Greenwood, who lost his seat to a Respect Party candidate in May 2012, said: “Paul is a tremendously gifted and committed individual who has made a significant and lasting contribution to the community in Great Horton, to the council and to the Labour group.
“I will be sad to see him go but I fully understand the reasoning behind Paul’s decision.”
The supermarkets-to-funerals Co-operative Group has launched a fact-finding investigation into “any inappropriate behaviour” and a “root-and-branch” review of its structure in the wake of the revelations about Mr Flowers.
Critics have questioned how he could have been appointed given his apparent lack of experience, and Andrew Tyrie, chairman of the Treasury Select Committee, said that, even before the weekend’s revelations, it was clear he was “manifestly unsuitable”.
Mr Flowers now faces a police investigation. He has apologised over the scandal and been suspended by the Methodist Church as well as the Labour Party.
The Co-operative Bank is facing a rescue plan which will see majority control turned over to investors including US hedge funds, after it was left with a £1.5 billion gap in its finances following the takeover of the Britannia Building Society in 2009.
Announcing his resignation today, Mr Wardle said: “The recent revelations about the behaviour of Paul Flowers, the former chair of the Co-operative Bank, have raised a number of serious questions for both the bank and the group.
“I led the board that appointed Paul Flowers to lead the bank board and under those circumstances I feel that it is right that I step down now, ahead of my planned retirement in May next year.
“I have already made it clear that I believe the time is right for real change in our operations and our governance and the board recently started a detailed review of our democracy.
“I hope that the group now takes the chance to put in place a new democratic structure so we can modernise in the interests of all our members.”
Mr Wardle’s departure will see him replaced by his deputy, Ursula Lidbetter, chief executive of the Lincolnshire Co-operative.
The Co-operative Group said: “It is intended that Ursula will chair the group through the current governance review, which will include consideration of how the board is constituted and chaired.”
Ms Lidbetter said: “These are very difficult times for the Co-operative Group and the wider movement, but I believe that we can and will come through this period stronger than ever by facing up to our challenges.
“I look forward to working with the new management team, who have already started on the important work of turning around our businesses.
“In addition, I look forward to working with my fellow board members and the wider membership as we change the way we are organised and governed in the interests of all our seven million members.”
The group, which employs 100,000 people, plunged to £559 million losses in the first half of the year, weighed down by its banking arm.
In July, it appointed former Treasury mandarin Sir Christopher Kelly to head an independent investigation into what went wrong at the bank. He will report back at the mutual’s annual meeting next May.
The fate of the bank has been described as a “tragedy” by former group chief executive Peter Marks.
Mr Tyrie, who heads the Parliamentary Commission on Banking Standards, said regulatory supervision of it had been a “complete disaster”.
He has said that the latest episode, involving Mr Flowers, shows the need to implement regulatory reform for top bankers as recommended by the commission.
It called for the approved persons regime (APR) to be scrapped and replaced. Mr Tyrie said APR had “degenerated into little more than a bureaucratic box-ticking exercise”.
He argues that, instead, there needs to be continuing and “intrusive” supervision of banking bosses.
Regulators have said that Mr Flowers went through the appropriate process when he joined the Co-op’s board as non-executive director. But he did not face further scrutiny when he became the bank’s chairman.
Cooperative Bank's illuminati pyramid office and its drug dealing homo perv boss
Crystal meth shame of bank chief: Counting off £20 notes to buy hard drugs, this is the man who ran the Co-op Bank... three days after telling MPs how it lost £700m
The chairman who oversaw the near-collapse of the Co-operative Bank has been caught buying and using illegal drugs including crystal meth, crack cocaine and ketamine.
The Rev Paul Flowers, a Methodist minister, was filmed buying the substances just days after he was grilled by MPs on the Treasury Select Committee over the bank's disastrous performance.
In the shocking video, Rev Flowers, 63, is seen in his car discussing the cocaine and crystal meth he wants from a dealer in Leeds. He then counts out £300 in £20 notes and sends a friend to make the deal.
The video and a series of damning text messages were handed to The Mail on Sunday by acquaintance Stuart Davies, who was 'disgusted by his hypocrisy'.
The text messages prove Rev Flowers was using hard drugs in the days surrounding his crucial testimony to the Treasury Committee on November 6. Last night MPs on the committee demanded Rev Flowers appear before them again.
Tory MP Brooks Newmark said he was 'gobsmacked' by the revelations which are sure to revive concerns about Britain's banking industry and who is fit to run it.
Former Labour councillor Rev Flowers yesterday apologised for his 'stupid and wrong' actions and blamed the 'pressures of my role with the Co-op Bank'.
Flowers was the £132,000-a-year chairman of the 'ethical' Co-op Bank from 2010 until May this year when he stepped down as the bank's financial woes became apparent. The bank lost £700 million in the first six months of this year.
On the day after his appearance at the Commons, Flowers sent a text reading: 'I was "grilled" by the Treasury Select Committee yesterday and afterwards came to Manchester to get wasted with friends.'
Flowers, who is gay, also boasts of using illicit substances including ketamine, a powerful Class C tranquilliser nicknamed 'ket', along with cannabis and club drug GHB.
In one text, Flowers wrote how his plans for a party were 'turning into a two day, drug fuelled gay orgy!!!' In another, he boasted of how he was 'snorting some good stuff'. That was sent on the day he was first scheduled to appear before the Commons committee, but the session ran out of time to hear him. And last week, he said in a text: 'I'm on ket tonight.'
Flowers has been a Methodist minister for 40 years, currently in Bradford, and formerly chaired drugs charity Lifeline, whose motto is: 'Telling the Truth About Drugs.' In one report, Rev Flowers wrote of 'the ever-increasing problems associated with drug use faced by individuals, families and communities'.
The Co-op Group, via its political arm, is a major Labour Party donor and sponsors about 30 MPs, including Shadow Chancellor Ed Balls. Rev Flowers is a trustee of HIV charity the Terrence Higgins Trust, whose website says that in 2010 Labour leader Ed Miliband appointed him to the party's Finance and Industry Board.
Stuart Davies, 26, first encountered the minister via the gay dating mobile phone app Grindr in early October. The two men exchanged texts and met a few weeks later. Mr Davies, who admits having used drugs in the past, said he was shocked by the scale of Flowers' drug taking as well as his double standards as he cavorted with two other young men.
'After hearing him bragging about his life, about his connections in Parliament, his 40 years in the church and his all-round good works, it just felt wrong,' said Mr Davies. 'He seemed to be using his status to get young men off their heads for sex.'
Mr Davies decided to expose Flowers and recorded part of a trip they took with a third man, who we will call X, to Leeds to buy drugs.
In time-marked footage, Flowers says after handing over the £300: 'What else have we got to get?'
X replies: 'No, that's it'.
Flowers: 'Ket? No?'
X says he doesn't think he can get it and Flowers replies: 'Don't worry. We will cope with what we've got.'
Legal experts say the evidence in the text messages and video footage could lay Flowers open to charges of possession and supplying drugs.
Mr Davies, who works in a bank, said drugs first came up in an chat on Grindr after their first meeting. He said Rev Flowers asked if he had used cocaine. 'I'd had the odd line and that's what I told him,' he said.
Some weeks later – on October 29, the date of Flowers' aborted appearance at the Commons – he sent Mr Davies a message saying he was, 'snorting some good stuff' and the next day invited Mr Davies to a party at his house. Shortly before he picked Mr Davies up, Flowers sent a text saying: 'Have 2 bags of Charlie [cocaine] here and have ordered another 5... enough? P x'
One minute later he adds: 'Also have ket and G [GHB] because they [two other party guests 'A' and 'B'] apparently like them...!'
Mr Davies recalled that at the party: 'He produced a metal tray which had cocaine on one side and ketamine on the other. About an hour after we got there, another man came round with five more grams of coke.
'Paul was lining up big fat lines of the stuff. A was also having the GHB as was Paul but both he and B were mostly interested in the ketamine but also some of everything else besides. When we weren't doing that we were smoking joints.
'Paul was really holding court and telling us what he had been up to.'
He had been at the Commons the previous day for his aborted meeting and Mr Davies said: 'He took great delight in telling us how he had put one over on them – “Tory c****” he called them – because they'd wanted him back the next day but he had told them where to go.
'We asked him about how he kept his drug taking secret and he laughed and said that a Labour MP had passed him in the corridors and said, “Have you got a touch of the old Colombian flu?” He laughed.
'He also told us he knew Tony Blair, especially back in 1997. He just seemed to know everybody.'
On November 7, Flowers sent a text referring to his 'grilling' the previous day. Two days later, he promised a 'fine old party' with 'Charlie, ket and rocks if [sic] crystal' but added that he had never tried crystal.
Mr Davies said: 'By this stage I was determined to get some proof of what he was like so I made up my mind to film him on my iPhone'. And last Saturday he recorded the footage handed to The Mail on Sunday.
He, X and Rev Flowers went to a council house in Leeds where they paid £100 for weed. Then the minister 'counted out £260 for half an ounce of cocaine and £40 for rocks of crystal meth'. Mr Davies said: 'When we got it back to his house, X said it was crack and they lit it and inhaled it from a pipe with silver foil.
He said that when they got back to Flowers' house 'there was the biggest rock of cocaine I have ever seen in my life... it was bursting out of a large transparent bag. Paul got a tumbler and began crushing it.'
He added that the minister 'was drinking pink champagne and dropping GHB into it.'
Rev. Flowers said in a statement: 'This year has been incredibly difficult, with a death in the family [his mother Muriel a year ago] and the pressures of my role with the Co-operative Bank.
'At the lowest point in this terrible period, I did things that were stupid and wrong. I am sorry for this, and I am seeking professional help, and apologise to all I have hurt or failed by my actions.'
The Co-operative Bank said last night: 'We can make no comment on these allegations which are of a personal nature and being made against a former board member.'
The Methodist Church said: 'We expect high standards of our ministers. We have procedures for when ministers fail to meet those standards, and we will now start those with a thorough investigation. We will also work with the police if they feel a crime has been committed.'
'I was grilled by the Treasury Select Committee yesterday... and afterwards came to Manchester to get wasted'
The Reverend Flowers' testimony to the Treasury Select Committee earlier this month was ridiculed by many, particularly after he was asked the size of the Co-op's assets.
Flowers said '£3billion'. The correct answer was £47billion.
Perhaps it was not surprising, as our text messages reveal the Rev Flowers' mind appeared to be elsewhere both before and after his appearance.
The day before the hearing, on November 5, he was planning a party and texted Stuart Davies: 'Do you like ket?'
And on the day after, he texted again to say: 'I was grilled by the Treasury Select Committee yesterday and afterwards came to Manchester to get wasted with friends.'
Flowers' stunning lack of knowledge about the Co-op Bank raised fears that it had lacked basic oversight from its chairman.
But Flowers insisted: 'I think you have seen my CV. You will know what I believe my skills to be, and what others have judged my skills to be.'
Nevertheless, his performance prompted the committee's chairman, Andrew Tyrie, to deliver a withering conclusion: 'Today we were provided with further evidence, if it were needed, that the chairman of a bank must have a good deal of financial experience and expertise.'
REVEREND PAUL FLOWERS AND THE CO-OP BANK'S £1.5BN 'BLACK HOLE'
Co-op Bank came close to collapse after running up more than £700million in losses in the first half of this year and being forced to fill a £1.5billion black hole in its funding.
As bank chairman and deputy chairman of the Co-operative Group, Paul Flowers oversaw the bank's activities throughout the lead up to the crisis.
The bank's near-failure stemmed from its ill-starred takeover of the Britannia Building Society in 2009, its huge payouts to compensate customers mis-sold products and its aborted takeover of 632 Lloyds Banking Group branches.
The Bank of England forced the bank to raise more cash in June after it became clear it was heading for heavy losses.
In a deal hatched earlier this month, The Co-op Group is to surrender the majority of its shares in the bank to City firms in return for them writing off part of its debts.
Executives have faced severe criticism for disastrous policies that led to the crisis. But as chairman, Flowers's job was to oversee their decisions and hold them to account.
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Islamic Banking Seeks Ethical Partnerships
Islamic banking rejects interest-based loans
as being predatory and unfair.
by Samir Abid Shaikh (henrymakow.com)
(Samir Shaikh is the Ex. Secretary General of The International Association of Islamic Banks)
The simplest way to define Islamic Banking is to say that : it is banking practiced according to the teachings of the religion of Islam .
Islamic banking is a form of banking that is harmonious with the goodness of humanity on Earth. The goodness in four different spheres : man to God , man to man , man to creatures of soul i.e. animals of all kinds , and man to inanimate creatures, i.e. nature.
In money matters such as trade , investments, and banking - the salient feature of goodness is manifested in the virtue of justice. In other words, when people deal in material objects, these dealings have to be fair to all parties concerned.
Islamic banking is supposed to be based on fairness and justice to all parties concerned, the bank as well as the public who use the service. One major obstruction of justice is usury which is manifest in the interest-based financial system.
One simple rule of detecting usury in Islamic teaching is that "Any loan that stipulates benefits to the loaner is a form of usury".
Most people borrow because they are in need , and need in itself is hurtful to human dignity. So to force people in need to pay penalties for their need is the epitome of inhumanity. This banning of the interest mechanism is therefore the cornerstone of Islamic banking.
The first private Islamic Banks was established in Dubai of the United Arab Emirates in the year 1975 ; while the first government Islamic bank was initiated in Jeddah , Saudi Arabia during the same year. There are currently more than six hundred Islamic Financial Institutions worldwide. 50% of these Institutions are banks while approximately 25% each are Investment companies and Insurance Companies.
Most of the Islamic Financial Institutions started up in the Middle East Area. And the ones which have the most assets are those in the Arabian (Persian) Gulf Region . The total assets of all Islamic Financial Institutions had passed the one trillion dollar threshold. The whole movement of Islamic Banking is growing at the average rate of at least 9% a year. Wealthier Islamic countries have more Institutions sprout every year , while less developed Islamic countries obviously show less new institutions every year.
Islamic Financial Institutions have many challenges, the most serious of those is to remain true in spirit to Islamic and ethical principles. I think the waves of globalization and international finance have such strong influence on Islamic finance , that it tries to suck it within its sphere.
To be specific , Islamic financial institutions are faced with the issue of religious opinion versus legal systems in the countries where they operate. Another challenge is the supervision of central banks , which are interest based institutions. The third challenge is cooperating with interest based banks. A fourth challenge is using the benchmark of the LIBOR - London Interbank Offered Rate i.e. interest rate.
A new geopolitical challenge that surfaced during the last decade was the negative global Islamic image equating Islam with Terrorism . Unfortunately this is still going on , because of many global factors which might take decades to resolve. I hope that people can Isolate Islamic finance from insane terrorist acts regardless of the perpetrators are.
HOW ISLAMIC BANKING WORKS
This banning of the interest mechanism is therefore the corner stone of Islamic banking.
Let's take an example of the unfairness of the interest mechanism . Let's assume that a simple home owner takes a loan from a bank to finance his family home at 7% per annum interest.
Most home loans are obviously long term loans i.e. 15-30 years long. Interest rates change over time. If the interest rate goes up say to 10% or more, the home owner will be in great difficulty to make his payments.
Very often , home owners are forced to leave their homes for the banks to repossess. They often discover they don't own much of the home then , because most of their payments went to interest . This is how such mechanism is utterly unfair to people.
The risk here is mostly born by the homeowner, who is the weaker ring in the chain, rather than the bank which is the stronger side in this inequitable equation.
The unfairness is clear because the risk here is born by the weaker home owner rather than the bank. Ideally speaking, the risk should be shared by both, which is manifest in a form of finance offered by Islamic banks. Let me give an example here for another home owner who took financing according to Islamic principles.
Home financing by Islamic banks is often executed according to a contract called "decreasing partnership". This simply means that once a person finds a suitable home for his/her family, the bank is called in to finance it . The bank becomes a part owner of the house for an extended period of time. At the same time the bank gives the individual the right to purchase the house gradually so that at the end of the period , the individual owns the whole house.
But say, the individual's circumstances have changed , and has to move to another part of town or a different State , or wants to buy a newer house, then the house is put for sale and whatever the selling prices is, the bank and individual share according to their ratios of ownership at the year of sale. This way the contract is more fair to both sides. The risk in this case is born by the bank as well as the beneficiary of finance.
There are obviously several types of contracts which cater to different needs of financing. Contracts which suit trade, other which suit leasing , others for manufacture as well as agriculture. And there are a lot more details to contracts, but I hope this example gives a clear illustration of the difference between interest based and Islamic finance.
I certainly hope we will see this type of banking spread all over the world - and not necessarily having such a name .. because Islamic banking is really for all religions and people .
I asked Samir: How do Islamic banks make a profit?
Islamic Banks do make profits , but it is not necessarily pro rata to current interest rates. For instance one of their contracts is a form "partnership" . In this contract the bank partners with a business person to finance whatever venture they agree on . When the business person makes profit , the Islamic bank makes profit as well.
Another contract is a "Lease" contract where they lease aircraft or heavy equipment to industrial plants. such contracts specify the returns the bank gets on the lease. this return covers the bank's operational expenses in addition to a margin of profit.
Therefore, Islamic banks are profit making firms , but their contracts if properly applied strive to be fair and share the risk with the other side. For instance if during a partnership agreement , the market falls or due to unforeseen environmental disruptions, the project looses - then the bank share the losses.
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How Big Banks Can Steal Your Home From You Even If Your Mortgage Is Totally Paid Off
Did you know that the big banks have a way to legally steal your house from you even if you don't owe a single penny on your mortgage? Big banks and hedge funds are buying billions of dollars worth of tax liens from local governments all over the nation, and they are ruthlessly foreclosing on homeowners when they can't pay the absolutely ridiculous penalties and legal fees that are tacked on to the original tax bill.
As you will see below, one 76-year-old man lost his $197,000 home that he fully owned over a $134 tax bill. A 95-year-old woman lost her $300,000 home over a $44.79 tax bill. This is a very, very dirty way to make money, and the predatory financial institutions that are involved in this business definitely do not want to talk about it.
Of course much of the blame should also be shouldered by the local governments that are coldly selling these tax liens to these ruthless predators. If local governments want to collect their tax bills, they should do it themselves. They should not be auctioning off their tax liens to cold-hearted financial institutions that are very eager to commit a legal version of highway robbery.
A few days ago, the Washington Post reported on the tragic story of a 76-year-old former Marine named Bennie Coleman. Coleman had originally purchased his home with cash, but that didn't stop tax lien predators from stealing his home over an unpaid $134 property tax bill...
On the day Bennie Coleman lost his house, the day armed U.S. marshals came to his door and ordered him off the property, he slumped in a folding chair across the street and watched the vestiges of his 76 years hauled to the curb.
Movers carted out his easy chair, his clothes, his television. Next came the things that were closest to his heart: his Marine Corps medals and photographs of his dead wife, Martha. The duplex in Northeast Washington that Coleman bought with cash two decades earlier was emptied and shuttered. By sundown, he had nowhere to go.
All because he didn’t pay a $134 property tax bill.
So why couldn't he pay such a small bill?
Well, as the Post explained, these big banks and hedge funds keep tacking on interest, penalties and legal fees until the tax bills are many times the size that they originally were. When the distressed homeowners can't come up with thousands of dollars to pay off the debts, the big banks and the hedge funds move in for the kill...
For decades, the District placed liens on properties when homeowners failed to pay their bills, then sold those liens at public auctions to mom-and-pop investors who drew a profit by charging owners interest on top of the tax debt until the money was repaid.
But under the watch of local leaders, the program has morphed into a predatory system of debt collection for well-financed, out-of-town companies that turned $500 delinquencies into $5,000 debts — then foreclosed on homes when families couldn’t pay, a Washington Post investigation found.
In particular, hedge funds have discovered that this is a great way to make huge piles of money. The following is a short excerpt from a CNN article that was published back in May...
With buyers identified only by numbers or unrelated names, the fragmented, unregulated industry is opaque. Even the market's size is debated -- $15 billion a year, according to Howard Liggett, the chief executive of Distressed Real Estate Consulting Services, or $5 billion a year, according to the National Tax Lien Association, a trade group. While returns are a closely kept secret, investors typically make between 2.5% and 10% a year, or in the low teens for larger buys.
"The hedge funds are chasing yield in this business" says Albert Friedman, a principal at Alterna Capital, an alternative investment firm in Boca Raton that buys tax liens.
Insiders estimate hedge funds now control 40% of the tax-lien market, from under 5% five years ago, with regional banks, obscure partnerships sporting names like God's ATM LLC, and mom-and-pop investors making up the rest.
And a number of "too big to fail" banks are involved in this business as well.
In a previous article, I described exactly how this works...
1) The big Wall Street banks set up or invest in shell companies that will disguise who they really are.
2) These shell companies run around and buy up all of the tax liens that they can get their hands on.
3) Predatory levels of interest (in some states as high as 18 percent), fees and penalties rapidly pile up on these unpaid tax liens. The affected homeowners quickly end up owing much, much more than what the original tax bills were for.
4) If the collecting firm has to hire a lawyer, then that gets charged to the homeowner as well. The bloated legal fees for some of these lawyers can end up being the biggest expense of all.
5) If the tax liens do not get paid, the collecting firms move in to foreclose as quickly as legally possible.
According to the Huffington Post, Wall Street banks such as Bank of America and JPMorgan Chase have been gobbling up several hundred thousand tax liens from local governments. It appears that "distressed housing markets" are being particularly targeted.
Many of these tax liens are sold in online auctions, so it is unclear if many local government officials even realize who the big money behind many of these shell companies is.
These big financial institutions may consider this to be "good business", but the truth is that they are absolutely shattering lives in the process. This is particularly true when it comes to older people that do not fully understand what is happening to them. Just consider the following examples from a recent Washington Post article...
A 48-year-old math teacher paid his taxes in 2007, but the tax office took his $1,400 payment and applied it to the wrong house, crediting an entirely different taxpayer.
A 58-year-old bank employee almost lost her house in 2010 because the tax office mistakenly sent bills and notices to a wooded lot across from a strip shopping center in Virginia — 12 times.
A 69-year-old hat designer was given the wrong payoff amount and ended up in court to save her property, owned by her family since 1943.
Those homeowners found out about the mistakes in time to fight. Ninety-five-year-old Daisy Dolsey, living in a nursing home and struggling with Alzheimer’s, wasn’t so lucky: She lost her $300,000 house over a $44.79 tax debt even after she paid her taxes.
Doesn't that just sicken you?
And then the big banks and the hedge funds have the gall to wonder why people dislike them so much.
In this day and age, large financial institutions have become more cold-hearted than ever before.
Always make sure that your property taxes are fully paid, and always keep a paper record of all financial transactions involving your home.
If you do slip up and make a mistake at some point, there is a very good chance that a ruthless financial institution will try to swoop in and steal your home right out from under your nose.
There's NEVER austerity for owners of properties like these
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Lets get ONE fact straight right now there is absolutely no shortage of money anywhere across the globe. There are not only far more millionaires, but many millionaires are transforming themselves into billionaires and trillionaires thanks to a globally manufactured lie that somehow money has disappeared in a puff of smoke.
Go to any city in any country and the rich are still living in vast opulence, the only difference is that the peasants, these bastards rely on for the menial tasks that keep them in the lifestyles they think they deserve, are now living in utter poverty. Most of the uber rich OWN or are shareholders in most of the compliant media's who have heavily reinforced the message generated by a self appointed mega class that there is little or no money. That lie has been perpetrated endlessly to create fear in the peasantry trying to survive the rigors of those shock waves as money for the peasants dries up while it flows in vast rivers into the coffers of the evil bastards who are telling us its all gone.
Its gone alright into the offshore tax havens and exotic islands were the rich concentrate when the heat goes up in the countries that have been devastated by the manipulation of the financial systems heavily weighted in favour of an establishment elite who have long histories of manipulating the money systems to their massive advantage. The tory party
is full of vile toffs who got their wealth from inheritance and why they have such a pathological hatred of the peasants and any lesser mortals who don't have bank accounts stuffed full of money from the ill gotten gains of their nasty fascist forefathers.