Dear Prime Minister,
There is growing alarm within the UK SME community at the Chancellors tacit approval of the actions of Cerberus. We can totally understand your Chancellors motivation in wanting UK banks to strengthen their Balance Sheets, by offloading long term mortgage debt for cash. Regrettably though there is “the law of unintended consequences” and as the attached article illustrates, bankers being bankers, this creates an incentive for Banks to put clients into default, in order to extract a higher price for the debt from Cerberus. Cerberus, on the other hand, are purchasing this debt with borrowed money, and they are highly motivated to “rape and pillage” in order to turn the purchased debt into cash, by any means they choose.
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