ianstone
09-26-2010, 10:00 AM
Businessman furious at banks' refusal to lend bricks up Barclays branch in protest
By Daily Mail Reporter (http://www.dailymail.co.uk/home/search.html?s=y&authornamef=Daily+Mail+Reporter)
Last updated at 2:33 PM on 26th September 2010
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HSBC boss Michael Geoghegan to receive £36m golden goodbye
A businessman angry at the reluctance of banks to lend money to small firms today bricked up the front door of a Barclays in protest.
Cameron Hope, a property developer, used breeze-blocks to build an 8ft by 4ft wall directly in front of the entrance to the bank.
Mr Hope, 59, was joined by other local business owners who say they have had trouble getting money out of banks in order to run their companies.
The protesters waved placards and banners proclaiming 'robbed by the banks we own' and 'make the banks lend' during the stunt at Barclays in Bournemouth, Dorset.
Members of the public voiced their support along with passing motorists who sounding their horns.
http://i.dailymail.co.uk/i/pix/2010/09/26/article-0-0B5BFABE000005DC-991_468x315.jpg Protest: Cameron Hope blocking up the Barclays in Bournemouth
Mr Hope, a father-of-four from Bournemouth, said: 'We blocked the doorway as a way of saying that the banks are open but the safe is shut.
'The banks are stifling the recovery from the recession by not lending businesses any money.
'I wanted to borrow some money for a new development but was told 'no, maybe next year.
'I wanted to borrow 40,000 pounds on a property that I already own but the bank tried to charge me a 7,000 pounds arrangement fee.
'It is outrageous and they are doing it because they can get away with it. Savers are getting nothing, borrowers are getting nothing and the banks are doing what ever they like.
'Some of the banks are even owned by the taxpayer and still they won't lend. The recovery will come from the private sector and if businesses can't borrow money then the recovery won't happen.
'This protest is saying enough is enough and the government needs to step in and make the banks lend.'
The brick wall was taken down two hours into the protest after police threatened them with arrest.
http://i.dailymail.co.uk/i/pix/2010/09/26/article-0-0B5BFC7D000005DC-345_468x374.jpg Finishing touches: Mr Hope is furious at banks' reluctance to lend
His plight is exactly the type of problems highlighted by the Daily Mail's campaign, Make the Banks Lend.
Smalls firms are struggling to stay afloat without vital money, with around 500 collapsing every week.
New Bank of England figures last week showed lending to smaller firms is still in crisis and they are paying back billions more than they are advanced.
This is despite the banks surging back to prosperity after the credit crunch and handing out millions in bonus payouts to their staff.
The new figures showed business lending to small firms had fallen for the fifth month in succession.
The situation is worse than six months ago, when banks handed out £300million more in loans than was repaid.
Business Secretary Vince Cable has read the riot act to the banks, warning: 'There is a potential train crash ahead.'
And Deputy PM Nick Clegg insists the coalition is working 'flat out' to get banks lending again to small businesses who he described as the 'lifeblood of our economy'.
http://i.dailymail.co.uk/i/pix/2010/09/26/article-0-0B5BFF25000005DC-207_468x621.jpg Mr Hope was threatened with arrest if he refused to take down the wall
Between July 2009 and July 2010, firms paid back to banks £47billion more than they received in new loans.
But this a sign that big firms are paying back their loans, and too little is being handed out in new money.
In comparison, during the second half of 2008, when Britain's economy was shrinking, the banks handed out £12.5billion more in loans to business than they received in repayments.
HSBC CHIEF: £36M PAYDAY
Outgoing HSBC chief executive Michael Geoghegan could be handed almost £36million when he steps down next year.
Mr Geoghegan, below, who opted to quit when he was not named chairman, will reportedly receive up to £11.3million in the month he leaves.
http://i.dailymail.co.uk/i/pix/2010/09/26/article-1315340-051A65560000044D-821_223x132.jpg
In total, according to the Sunday Telegraph, he will receive £1.42million in compensation for leaving early, at least £1.37million in salary and benefits for 2010, a possible bonus of £4million for 2010, £6.6million of shares he already owns, up to £7.2million from long-term incentive plans and a £15million pension pot.
Mr Geoghegan will stop being chief executive in December but continue to advise the bank until next March.
A HSBC spokesman said: 'Mr Geoghegan's shareholdings and possible share awards reflect both his success and the success of the HSBC Group and have accumulated through his 37 years of continued service.'
HSBC was one of the few banking giants which did not receive Government money during the credit crisis.
The Daily Mail's campaign has revealed the desperate plight of thousands of small firms.
It was launched in July after Bank of England governor Mervyn King said he was deeply saddened by the impact of the banks' behaviour on small firms .
He recalled 'heartbreaking' stories that he regularly hears from entrepreneurs struggling to survive, or expand their business, following poor treatment by their bank.
This week's 'Trends in Lending' report from the Bank said the situation is getting better for big companies, but has not changed for their smaller counterparts.
It said: 'Contacts of the Bank's network of Agents noted that while credit conditions were easing for larger businesses, they remained tighter for smaller firms.'
To make matters worse, the interest rates that big businesses are being charged are dropping, but the rates are unchanged for small firms .
The findings are echoed in a separate report from the manufacturers' organisation, the EEF.
It has witnessed a 'modest improvement in the supply of credit and the availability of new lines of borrowing', but the trend has been 'concentrated' among medium and large companies.
The EEF warned: 'Some small firms [are] still facing constraints in accessing finance.'
The British Bankers' Association has insisted its members are doing their best to help small firms at this difficult time.
A spokesman said this week: 'The UK's banks have established a taskforce to report to the Government on exactly this issue - addressing how banks can further help small businesses through the recovery.
'We absolutely agree with the Government that small businesses are vital to securing the economic recovery and have committed to offering every assistance to viable businesses.'
Read more: http://www.dailymail.co.uk/news/article-1315340/Businessman-furious-banks-refusal-lend-bricks-Barclays-branch-protest.html#ixzz10dzGXN7H
By Daily Mail Reporter (http://www.dailymail.co.uk/home/search.html?s=y&authornamef=Daily+Mail+Reporter)
Last updated at 2:33 PM on 26th September 2010
Comments (10) (http://www.dailymail.co.uk/news/article-1315340/Businessman-furious-banks-refusal-lend-bricks-Barclays-branch-protest.html#comments)
Add to My Stories (http://www.dailymail.co.uk/news/article-1315340/Businessman-furious-banks-refusal-lend-bricks-Barclays-branch-protest.html)
HSBC boss Michael Geoghegan to receive £36m golden goodbye
A businessman angry at the reluctance of banks to lend money to small firms today bricked up the front door of a Barclays in protest.
Cameron Hope, a property developer, used breeze-blocks to build an 8ft by 4ft wall directly in front of the entrance to the bank.
Mr Hope, 59, was joined by other local business owners who say they have had trouble getting money out of banks in order to run their companies.
The protesters waved placards and banners proclaiming 'robbed by the banks we own' and 'make the banks lend' during the stunt at Barclays in Bournemouth, Dorset.
Members of the public voiced their support along with passing motorists who sounding their horns.
http://i.dailymail.co.uk/i/pix/2010/09/26/article-0-0B5BFABE000005DC-991_468x315.jpg Protest: Cameron Hope blocking up the Barclays in Bournemouth
Mr Hope, a father-of-four from Bournemouth, said: 'We blocked the doorway as a way of saying that the banks are open but the safe is shut.
'The banks are stifling the recovery from the recession by not lending businesses any money.
'I wanted to borrow some money for a new development but was told 'no, maybe next year.
'I wanted to borrow 40,000 pounds on a property that I already own but the bank tried to charge me a 7,000 pounds arrangement fee.
'It is outrageous and they are doing it because they can get away with it. Savers are getting nothing, borrowers are getting nothing and the banks are doing what ever they like.
'Some of the banks are even owned by the taxpayer and still they won't lend. The recovery will come from the private sector and if businesses can't borrow money then the recovery won't happen.
'This protest is saying enough is enough and the government needs to step in and make the banks lend.'
The brick wall was taken down two hours into the protest after police threatened them with arrest.
http://i.dailymail.co.uk/i/pix/2010/09/26/article-0-0B5BFC7D000005DC-345_468x374.jpg Finishing touches: Mr Hope is furious at banks' reluctance to lend
His plight is exactly the type of problems highlighted by the Daily Mail's campaign, Make the Banks Lend.
Smalls firms are struggling to stay afloat without vital money, with around 500 collapsing every week.
New Bank of England figures last week showed lending to smaller firms is still in crisis and they are paying back billions more than they are advanced.
This is despite the banks surging back to prosperity after the credit crunch and handing out millions in bonus payouts to their staff.
The new figures showed business lending to small firms had fallen for the fifth month in succession.
The situation is worse than six months ago, when banks handed out £300million more in loans than was repaid.
Business Secretary Vince Cable has read the riot act to the banks, warning: 'There is a potential train crash ahead.'
And Deputy PM Nick Clegg insists the coalition is working 'flat out' to get banks lending again to small businesses who he described as the 'lifeblood of our economy'.
http://i.dailymail.co.uk/i/pix/2010/09/26/article-0-0B5BFF25000005DC-207_468x621.jpg Mr Hope was threatened with arrest if he refused to take down the wall
Between July 2009 and July 2010, firms paid back to banks £47billion more than they received in new loans.
But this a sign that big firms are paying back their loans, and too little is being handed out in new money.
In comparison, during the second half of 2008, when Britain's economy was shrinking, the banks handed out £12.5billion more in loans to business than they received in repayments.
HSBC CHIEF: £36M PAYDAY
Outgoing HSBC chief executive Michael Geoghegan could be handed almost £36million when he steps down next year.
Mr Geoghegan, below, who opted to quit when he was not named chairman, will reportedly receive up to £11.3million in the month he leaves.
http://i.dailymail.co.uk/i/pix/2010/09/26/article-1315340-051A65560000044D-821_223x132.jpg
In total, according to the Sunday Telegraph, he will receive £1.42million in compensation for leaving early, at least £1.37million in salary and benefits for 2010, a possible bonus of £4million for 2010, £6.6million of shares he already owns, up to £7.2million from long-term incentive plans and a £15million pension pot.
Mr Geoghegan will stop being chief executive in December but continue to advise the bank until next March.
A HSBC spokesman said: 'Mr Geoghegan's shareholdings and possible share awards reflect both his success and the success of the HSBC Group and have accumulated through his 37 years of continued service.'
HSBC was one of the few banking giants which did not receive Government money during the credit crisis.
The Daily Mail's campaign has revealed the desperate plight of thousands of small firms.
It was launched in July after Bank of England governor Mervyn King said he was deeply saddened by the impact of the banks' behaviour on small firms .
He recalled 'heartbreaking' stories that he regularly hears from entrepreneurs struggling to survive, or expand their business, following poor treatment by their bank.
This week's 'Trends in Lending' report from the Bank said the situation is getting better for big companies, but has not changed for their smaller counterparts.
It said: 'Contacts of the Bank's network of Agents noted that while credit conditions were easing for larger businesses, they remained tighter for smaller firms.'
To make matters worse, the interest rates that big businesses are being charged are dropping, but the rates are unchanged for small firms .
The findings are echoed in a separate report from the manufacturers' organisation, the EEF.
It has witnessed a 'modest improvement in the supply of credit and the availability of new lines of borrowing', but the trend has been 'concentrated' among medium and large companies.
The EEF warned: 'Some small firms [are] still facing constraints in accessing finance.'
The British Bankers' Association has insisted its members are doing their best to help small firms at this difficult time.
A spokesman said this week: 'The UK's banks have established a taskforce to report to the Government on exactly this issue - addressing how banks can further help small businesses through the recovery.
'We absolutely agree with the Government that small businesses are vital to securing the economic recovery and have committed to offering every assistance to viable businesses.'
Read more: http://www.dailymail.co.uk/news/article-1315340/Businessman-furious-banks-refusal-lend-bricks-Barclays-branch-protest.html#ixzz10dzGXN7H