THE NEW ECONOMIC RIGHTS ALLIANCE
Public Statement by the UBUNTU Party.
10 September 2012
Should SA ‘banksters’ be put in jail?
The leader of the Ubuntu Political Party has openly called upon the South African public to come forward with any information regarding possible fraud that their banks may have committed. This is in view of possible criminal charges to be laid against the South African banks, their directors and CEO’s. He is also preparing a charge of civil fraud against Standard Bank, to be served within days.
Michael Tellinger has stated that banks are engaging in a secret process called securitisation which, he claims, has resulted in the unlawful stripping of thousands of homes and the “stealing” of people’s belongings by lawyers and banks.
“Our banks have been caught red handed in a fraud that amounts to billions. Who is going to stand up to them?” fumes Tellinger, who has been trying to get his case heard for almost two years.
“I personally delivered two hours of solid evidence in a court room full of people. We watched in horror as Judge Mabesele pulled out a judgment that he clearly prepared earlier, and read it out. No deliberation, no reasoning clearly a pre-meditated judgement.” Said Tellinger.
But the lack of justice to the people does not stop there he added. “After serving legal papers on the court for the Judge to produce written detailed reasons for his judgement, our claim was simply ignored mainly because of the interference from Norton Rose, the lawyers for Standard Bank, who contacted the Judge and told him that he did not have to deliver any reasons!”
Tellinger is backing himself thanks to a string of successful cases in the United States against securitisation. The most recent case involved Citigroup, who was forced to settle for $590 million in damages. In the US, banks and brokerages have been under fire since the 2008 crisis where ‘sub-prime’ securitisation was considered to be the cause of the crash.
Securitisation occurs when banks sell bundles of loans, credit cards and shop cards to third parties, who in turn trade them on various bond and stock exchanges. The profit margins can be enormous because those loans become “bets” called derivatives which can be traded many times over.
The person repaying the loan has no idea that he is responsible for his share of a global industry estimated to be 20 times larger than the GDP of the entire planet, and this is why Tellinger is resolute in getting the media to finally get behind the people and start asking the hard questions of the “banksters”.
“Securitisation is bringing down this country” he continues. ”It is a giant pyramid scheme that has to keep sucking more and more debt to stop it from crashing. This debt comes from us – our homes, cars, credit cards, businesses and assets. It must be exposed. It must be stopped or our children will not survive the next few years. The banksters are stealing the country from its people.”
CEO of Standard bank, Jaco Maree, recently had this to say about South African banking: “…we have simpler banks – not the type of ‘casino banks’ found in other developed financial systems.” However, according to the Banking Association of South Africa’s website, South African banks are securitising loans in the region of R30 billion per month.
Advocate MS Blackbeard from the Registrar of Banks at the South African Reserve Bank, states that when securitisation takes place, a bank “has no legal standing in respect of the assets thereafter.” If correct, Tellinger would have uncovered a monumental fraud in South African banking.
“To all the people of South Africa, I beg you to please understand something very clearly. When you took out a “loan” from a bank the money was created out of thin air. There was no lawful loan! The banks have been lying to you and it is time to stand up for your rights.
“Then, to add insult to injury, they secretly sell all these fake-loans to investors. The banks get their money up front and the investors are insured if you can’t keep up with payments. They are protected while you, the consumer, is left with nothing. They will take away everything we have until we wake up to this fraud and do something about it.”
Tellinger’s gripe is that the banks pretend to own the so-called loan, but because it has been sold and re-sold, the bank should no longer retain a relationship with the customer in this regard. However, a constant stream of bank statements, letters and phone calls to the customer from the bank maintains the illusion that the bank still owns the debt. This, he claims, is both illegal and immoral because it protects a secret profiteering racket that could be worth trillions of Rands. This deception is somehow protected by the courts and ignorant judges who refuse to cross examine the bankers about any of their activities.
Even when the banks confess to all these deceptive and unlawful activities to the judges, they are not questioned in any way. This is a wake-up call for everyone that there really is no justice for the common people.
The New Economic Rights Alliance (NewERA), a non-profit organisation not aligned to any political party, has supported Tellinger in previous cases. Scott Cundill, Chairman of the NewERA made the following statement to the Ubuntu Party:
“Much as we sympathise with Michael Tellinger, we simply do not have the resources to formally support him in laying criminal charges. We must stay true to our civil case in the High Court.”
The NewERA and their members are taking legal action against the big four banks and the South African Reserve Bank. The premise of the NewERA case in the High Court is that in order to loan something to someone, one needs to first possess it. As strange as it sounds, banks do not possess the money they claim to “lend” the customer, and therefore the loan agreements should be declared invalid.
To join in the action please email your details to email@example.com and we will provide you with a short affidavit draft to fill in regarding your allegations.
“This is the time to stand together and united as a great nation of rainbow people, against a silent onslaught that will consume us if we do not act now.”