The 53 Companies Bailed Out by the Bank of England

[Saving For a Space Ship]

The 53 Companies Bailed Out by the Bank of England: Jonson Controls, Carnival, PACCAR, Honda, Toyota, BASF, Bayer

https://wolfstreet.com/2020/06/08/the-53-companies-bailed-out-by-the-bank-of-england-jonson-controls-carnival-paccar-honda-toyota-german-chemical-giants/

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Corporate Tax Avoiders and Other Bad Actors

The BoE also helped out Johnson Controls, a US company that became the world’s second largest corporate inversion when it decided, in 2016, to relocate to Ireland after its merger with Tyco to avoid paying US income taxes. The company was delisted from the Fortune 500. It is also unlikely to receive assistance from the U.S. government during the virus crisis, should it need it. But that doesn’t seem to matter because it can always go, cap in hand, to the Bank of England and receive a virtually interest-free £370 million loan.

As previously mentioned, in order to qualify for the BoE’s CCFF program, you need to be deemed to provide “a material contribution to the UK economy.” But it’s far from clear what that actually means. Given the prevalence on the list of companies that pay little or no taxes in the UK, it’s clearly not meant in fiscal terms.

Close to 30% of the money so far disbursed by the BoE has gone to companies that are owned by a tax haven company or a tax exile, or are themselves incorporated in a tax haven, according to the investigative think tank Taxwatch UK. They include:

• Baker Hughes (£600 million), a subsidiary of General Electric (via a Bermuda holding company). GE is embroiled in a £1 billion tax dispute with HMRC over unpaid taxes going back to 2004.
• Chanel Limited (£600 million), which is owned by Litor Limited, a company based in the Cayman Islands.
• CNH Industrial Limited (£600 million), a US-Italian company spawned from a merger between Fiat Industrial and Case New Holland, which is ultimately controlled by the Agnelli family, one of Europe’s wealthiest dynasties. The company faces no tax liability in the UK since its UK operations are loss making. However, its presence in the UK allows it to receive £600 million from the BoE, which is more than 50% of the company’s £1.1 billion revenues at its Basildon plant.
• Telefonica Europe B.V. (£200 million) and ABB Finance B.V. (£400 million), both of whose holding companies are based in the Netherlands while most of their revenues are generated elsewhere.

Another firm that has been helped out by the BoE is Chemring, a UK company operating in the defense sector that admits in a press release on its website that it referred itself to the Serious Fraud Office in 2018, triggering a criminal investigation into bribery, corruption and money laundering. As confirmed by the SFO website, this is still an ongoing investigation. And while it goes on, Chemring has received £50 million from the BoE...

 

Edited June 9, 2020 by Saving For a Space Ship

[regprentice]

That list is demented - We've paid luxury good brand Chanel £600mn?! Surely if anyone is sitting on a pile of cash it's them. 

[Killer Bunny]

Socialism. Bailing out your friends and best connected.

Ban bailouts!

[msi]

Notice how the Elites get bailouts whilst lecturing everyone else how bad socialism is and that any sort handout ultimately hurts the poor. 

Utter hypocrisy. People that echo this are either paid up lackeys or mindless morons.

These companies actively avoid paying tax and contributing to their host Governments, yet expect to be bailed out. The antithesis of a Social Contract.

 

Why didn't the Governments go 'Don Corleone' on them and tie some heavy conditions to them, including viable winding up with UK Gov as primary creditor?  They can then sell off the IP minus the loaded debt (bye bye banks) to the highest bidder. 

 

 

 

 

 

[longgone]

so BA gets 300m and has 1.5bln in cash ?

and then proposes this while furloughing staff.

https://metro.co.uk/2020/05/16/british-airways-cabin-crew-face-55-pay-cut-appalling-new-contract-12712207/

 

[byron78]

Crony Capitalism. But is anyone really surprised?

[longgone]

got to wonder why they made an example of branson with all of the above going on ? easy target perhaps or take the heat off the real scam going on. 

[Bruce Banner]

1 minute ago, byron78 said:

Crony Capitalism. But is anyone really surprised?

This government is a disgrace. We (natural Tories) are disenfranchised.

[byron78]

1 minute ago, Bruce Banner said:

This government is a disgrace. We (natural Tories) are disenfranchised.

Yes, it's a very odd state of affairs isn't it?

[longgone]

5 minutes ago, Bruce Banner said:

This government is a disgrace. We (natural Tories) are disenfranchised.

?

if only minors could baptize themselves 

[Killer Bunny]

18 minutes ago, byron78 said:

Crony Capitalism. But is anyone really surprised?

That's right.  Socialism.

[Killer Bunny]

16 minutes ago, Bruce Banner said:

This government is a disgrace. We (natural Tories) are disenfranchised.

Actually, the members of the Conservative Party have only had one good leader and she will never be replaced.

Edited June 9, 2020 by Killer Bunny

[regprentice]

20 minutes ago, longgone said:

got to wonder why they made an example of branson with all of the above going on ? easy target perhaps or take the heat off the real scam going on. 

Virgin Atlantic Airways has been told by Treasury officials it has to find around £500m of cash from private investors, including Sir Richard Branson, before the Government will consider the billionaire's pleas to access a similar amount via an emergency loan.

It is understood Chancellor Rishi Sunak wants Sir Richard “to feel some financial pain” before allowing his airline access to lending via the Government’s Covid Corporate Financing Facility (CCFF), which Virgin Atlantic does not qualify for currently because the group does not have an investment grade.

[Bruce Banner]

4 minutes ago, byron78 said:

Yes, it's a very odd state of affairs isn't it?

Indeed. 

Having endured eleven odd years of New Labour, I was euphoric when Cameron won in 2010, but it was short lived. The surveillance state went from strength to strength and other than the lack of outriders for the PM's car nothing changed. Manifesto promises were disregarded and the Tory party became New Labour2. Lies, spin and authoritarianism.

[longgone]

7 minutes ago, regprentice said:

Virgin Atlantic Airways has been told by Treasury officials it has to find around £500m of cash from private investors, including Sir Richard Branson, before the Government will consider the billionaire's pleas to access a similar amount via an emergency loan.

It is understood Chancellor Rishi Sunak wants Sir Richard “to feel some financial pain” before allowing his airline access to lending via the Government’s Covid Corporate Financing Facility (CCFF), which Virgin Atlantic does not qualify for currently because the group does not have an investment grade.

surely anyone one of the above bailed companies not expecting to survive with assistance is not investment grade ?

[msi]

1 minute ago, Bruce Banner said:

Indeed. 

Having endured eleven odd years of New Labour, I was euphoric when Cameron won in 2010, but it was short lived. The surveillance state went from strength to strength and other than the lack of outriders for the PM's car nothing changed. Manifesto promises were disregarded and the Tory party became New Labour2. Lies, spin and authoritarianism.

NuLabour was Tory lite, Blair admitted to building on Thatcher's policies.  When Brown tried to shift Labour, Cameron continued Tory Lite with  'call me Dave and lets hug a hoodie'.  BoJo will continue the streak.

Thatcher may have had noble ideals, but she was duped and betrayed by the hard right, and their paymasters, in her party. Her sin was Pride in falling for their sweet talking and iconography of the 'iron lady'.  May didn't learn the lesson.

The Tory right is in the wane - demographics will kill them off, but they have undue influence as the 'spiritual' guide for the Tories - if they get too Lite, then something like UKIP appears to keep them 'pure'. 

[regprentice]

2 minutes ago, longgone said:

surely anyone one of the above bailed companies not expecting to survive with assistance is not investment grade ?

I believe it means that Virgin Atlantic have never issued debt so don't have a rating like AAA+ etc, though you need a BBB rating to qualify for this scheme so the state they are in they may struggle even if they were rated.  

[Peter Hun]

1 hour ago, msi said:

Notice how the Elites get bailouts whilst lecturing everyone else how bad socialism is and that any sort handout ultimately hurts the poor. 

Furlough.

Cannot complain, the poor are being bailed out.

[msi]

11 minutes ago, Peter Hun said:

Furlough.

Cannot complain, the poor are being bailed out.

No. Rich companies have ransomed their workers.

If that wasn't the case, then why are so many redundancies appearing as soon as furlough ends?

[MarkD]

And when all this is over the streets will be full of homeless just like before. A case of non so blind as those that will not see I believe. All very depressing.

[msi]

Just now, MarkD said:

And when all this is over the streets will be full of homeless just like before. A case of non so blind as those that will not see I believe. All very depressing.

Apart from the fact that the Country can now see it is possible to wipe out homelessness, it is possible to apply a direct income model, it is possible for Big Government to work in Everyones interest.

People can also see who is avoiding their end of the Social Contract (putting staff at risk, not paying suppliers, avoiding tax and claiming bailout).

We may be at a post WW2 tipping point - if we can plan for war, why can't we plan for peace?

[Peter Hun]

9 minutes ago, msi said:

No. Rich companies have ransomed their workers.

If that wasn't the case, then why are so many redundancies appearing as soon as furlough ends?

One way of looking at it. They have still been paid.

[Social Justice League]

Socialism isn't about bailing out Elites. 

Socialism is about making sure that everyone has the basics - food/shelter/healthcare/education and the chance to progress in life.

In the UK the shelter bit has gone wrong though.

[Warlord]

These companies ought to be ashamed of themselves. They can raise capital in the markets why are they taking the govt' money? It comes with strings you know . It is self-defeating. 

 

[longgone]

13 minutes ago, msi said:

Apart from the fact that the Country can now see it is possible to wipe out homelessness, it is possible to apply a direct income model, it is possible for Big Government to work in Everyones interest.

People can also see who is avoiding their end of the Social Contract (putting staff at risk, not paying suppliers, avoiding tax and claiming bailout).

We may be at a post WW2 tipping point - if we can plan for war, why can't we plan for peace?

indeed they always could ! the homeless were merely a tool to tell the plebs if you don`t tow the line this is what can happen. a walking billboard. 

Rich though you don`t want any break in service spoiling play, keep calm carry on the Boe has your back.