Saturday, February 27, 2010
Lloyds Liar Loans
British people and firms were defaulting, welching and plain embezzling on an industrial scale last year, it seems. The standout figure in the Lloyds Banking Group results yesterday was the Â£24,000 million of loans the bank judged it will never get back from customers. Every second of every day in 2009, Lloyds was writing off another Â£760 as clients queued up to say they could not honour their debts. Even lending at Royal Bank of Scotland was souring at the rate of only Â£441 a second. Itâ€™s jaw-dropping. You physically couldnâ€™t destroy banknotes at the pace Lloyds was flushing money away. It points to earlier lending judgments of extraordinary recklessness or incompetence.