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LOBO ‘yes’ or ‘no’?

Letters from the Fenland Citizen, fenlandcitizen.co.uk, @FenlandCit on Twitter
Letters from the Fenland Citizen, fenlandcitizen.co.uk, @FenlandCit on Twitter

Across Fenland we are suffering swathing cuts to local services and increased council tax contributions – could this be the result of “LOBO’s”?

A Lobo is a “lender option borrower option” loan financed by our “high street banks” via “brokers and city advisors”.

Councils up and down the UK have taken out these loans only to find you pay little interest when the economy is good but, when in recession / austerity, they become very expensive to repay.

Unfortunately councils are locked into these deals and cannot refinance without paying “severance fees”. A typical £25 million Barclays Bank loan will cost an extra £14 million in early severance fees.

In one case a £15 million Barclays council loan, (LOBO) earned Barclays Bank £1 million profit in one day.

RBS call these loans “inverse floaters” as when interest rates fall the councils will pay more interest.

The government has shown some interest in this issue so, hopefully, there will be a full public enquiry.

Councils were sold these LOBO’s at low teaser rates before 2009 – since then the interest rate has increased to 7.6%.

Unfortunately as this information is classed as “commercially confidential” you cannot contact FDC under the Freedom of Information Act.

I therefore request FDC to be open and say “yes or no” if they have LOBO’s and provide an accurate figure of the projected cost to taxpayers over the next five years so we can keep FDC in the black and maintain existing services.

Mark Burton,

Willey Terrace,


socialism debate

I respect his stance

David Silver and Paul Hudson attack John Smithee (Citizen letters, July 15) for his socialist stance. I respect John Smithee for his consistent, principled views.

The problem with those who lambast socialism is their reluctance to acknowledge their preferred method – which is, presumably, capitalism?

Banks define capitalism, a system which literally destroyed the economies of most countries in the modern world. That is an absolute fact.

Then surprise, surprise, those gangster banksters fall back on SOCIALISM to rebuild their banking system.

You can’t have it both ways David and Paul, or is it that you do want it both ways – unlike John Smithee, who has stuck loyal to his principles and belief in socialism.

Have you not noticed that everything is measured in monetary terms.

Watch the news, there is nothing that is not assessed as a monetary value and how people will be taxed or fleeced, one way or the other.

We even have to pay to see our own credit rating, information held by billion pound companies to whom we have not signed up!

The reason the wrongly-named Labour Party was shafted in the recent election was because it looks and acts like a bunch of failed Apprentice candidates – and the electorate gave them a Lord Alan Sugar-style send-off.

No conviction, no principles and, above all, no integrity.

They can’t even work as an effective opposition.

Now Cameron has taken a full-frontal attack upon the trade unions.

Why, because the electorate/working people have nowhere to go, no-one to fight their corner.

Have you ever seen such a ramshackle, bunch of nerds as the current Labour leader candidates?

God help this country, that’s what I say.

The power in a democracy comes from strong opposition.

Labour can’t do it because they have the same views and allegiance to the bankers as the Tories.

Cameron is merely finishing Blair’s work – turning Engand into a distant state of the USA.

John Bennett-Collins,

via email.

village beer festival

Event was excellent

We would like to congratulate the members of the Gorefield Community Centre and all their helpers for an excellent beer festival and gala weekend. All their hard work and weeks of planning proved a great success and was a credit to the village.

John and Sue Turner,

via email.

big cat sightings

Cat nap?

It’s all gone quiet on the Fenland big cat/panther front. Could it be it has gone on holiday?

Citizen reader,

details supplied.

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