The banks went out looking for suckers, in the
form of customers. They chased them down
the street to sell them interest rate swaps as a
hedge against their loans going up when interest
rates eventually go up.
So, most every bank was doing this. If interest rates
fluctuated, this would be useful to the customer. However
what have we been living through recently?
The libor scandal , where interest rates were fixed.
Every major bank in the UK, and the government, were in
on that scam.
That means that all those selling interest rate swaps knew
that the interest rates would not be going up, but down.
If they go down, the bank wins and the customer loses.
And that's just the way it was planned.
and THAT is why front-line bankers, in the
neighbourhoods of London, were chasing
customers to sign them up. The word from head office
was "rope some dopes, this is a sure thing."
That's called a massive fraud, not "mis-selling".
