Guardian Exclusive!


The Guardian is rather patting itself on the back for having found out that many of the securitization vehicles used to get debts off the balance sheet for various banks are, shock, horror, set up as charitable trusts!

You can see their investigative reporting here and their Leader on the subject here. Netsmith linked to CityUnslicker last week where it was explained that the use of a charity in this manner was actually rather the point. For the securitization vehicle to be truly off balance sheet, it cannot be owned by the bank which is trying to get it off its balance sheet.

Indeed, this is such a horror of the capitalist marketplace, such a dire and dangerous abuse of charitable status, that Her Majesty's Revenue and Customs has a page telling you how to do it. If you ask them very nicely, I'm told that they will send you a CD explaining the system as well.

What would we do without the fearless investigative journalists at The Guardian speaking truth to power, as they do?