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FCA investigates collapsed lender MFS amid £1.3bn mortgage scandal

about 6 hours ago
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The UK’s financial regulator has launched an investigation into Market Financial Solutions (MFS), the mortgage lender that collapsed last month amid allegations of fraud.The move follows the granting of a £1.3bn worldwide asset-freezing order on MFS founder Paresh Raja on Wednesday, as creditors successfully gained court orders in London and Dubai barring the tycoon from dissipating assets.On Friday, the Financial Conduct Authority said it had “opened an enforcement investigation” into the stricken mortgage lender, which borrowed £1.3bn from a string of financial companies and slumped into administration in February.

Companies owned by Raja borrowed from a series of financial institutions – including banks and hedge funds – before loaning that cash to MFS, which extended mortgages to customers.Creditors have alleged in court documents that some of the borrowers that ultimately received mortgages from MFS were actually connected to Raja, as part of a structure that “may have been a device designed to extract monies … on false pretences”.There are also concerns that some loans may prove to be unsecured, with allegations that security had been granted to two or more financial institutions at the same time over the same property, in a process known as “double pledging”.The financial institutions that appear to be on the hook include banks such as Barclays, Jefferies and Santander, as well as hedge funds and “private credit” lenders including Elliott Management, Castlelake and Apollo’s Atlas SP unit.CS Venkatakrishnan, the chief executive of Barclays, said on Wednesday that the bank’s anticipated losses would be “materially lower” than £500m, the amount MFS owes the bank.

A spokesperson for Raja declined to comment.The financier’s lawyer has previously told the Daily Telegraph: “Mistakes have been made but there has been no intention to defraud whatsoever and Mr Raja has not been the beneficiary of any shortfall (if any) there may be.”
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Reform UK suspends Scottish candidate less than a day after announcing him

Reform UK has suspended one of its Scottish candidates after it emerged he had been struck off as a company director, and the party faces growing attacks for fielding candidates making Islamophobic remarks.Reform confirmed on Friday morning it had suspended Stuart Niven, its candidate for Dundee City West, after the Herald revealed he had been struck off after diverting tens of thousands of pounds of Covid grants into his personal account.Several hours after that admission, claims within Reform’s Scottish manifesto that it could save billions of pounds in Holyrood spending were dismissed by the Institute for Fiscal Studies thinktank, which described many of its pledges as “not fiscally credible” and “unserious at best”.Reform had faced a succession of attacks from across the political spectrum about the conduct of several candidates only hours after Nigel Farage unveiled the 73 Reform UK hopefuls standing for May’s Scottish parliament election.Anas Sarwar, the Scottish Labour leader, said the disclosures in several newspapers about their “divisive tweets” raised challenging questions about the party’s screening process, which Farage earlier this year claimed was now far more rigorous than before

about 8 hours ago
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Starmer’s ministers look at new economic blueprint to quell voter anger

Cabinet ministers have been studying a blueprint for Labour to radically overhaul its economic offer and messaging, including devolving tax powers, abolishing national insurance, and major property tax changes.Passed around dozens of MPs, the paper argues that without a major rethink, the failure to tackle the discontent on the cost of living will hand the next election to a hard-right government. There is also increasing concern that the war with Iran – pushing up prices of fuel, energy, food and mortgages – will fuel further mass public anger.The report, which has the draft title of the Beveridge Report for the Economy, will say the British economy rewards grifters and exploitation rather than hard work, and that voter anger is fuelled by the belief that hard work and “doing the right thing” leaves many feeling cheated.Several potential Labour leadership candidates are understood to have requested to see the report, which was prepared as part of a partnership between the Labour Growth Group of MPs once considered loyal to Keir Starmer and the Good Growth Foundation thinktank

about 9 hours ago
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Attorney general asks if Kemi Badenoch would object to Jewish public prayer

Richard Hermer, the attorney general, has challenged Kemi Badenoch to say whether she would object to Jewish prayer in public, after the Conservative leader backed one of her shadow ministers who said an Islamic prayer event was intimidating and un-British.Hermer, one of the UK’s most prominent Jewish politicians, said Badenoch’s decision to support the views of Nick Timothy, the shadow justice secretary, put her on a par with Reform UK and Tommy Robinson, the far-right activist.After an event to mark Ramadan took place on Monday evening in London’s Trafalgar Square, Timothy posted images of mass prayers taking place, saying such an action in a public space was “an act of domination” and “straight from the Islamist playbook”.Asked about her support for Timothy on Thursday, Badenoch said any public expressions of religion should “fit within the norms of a British culture”, and criticised the way men and women were separated for the Ramadan prayers, with men nearer the stage and women farther behind.Hermer told the Guardian Badenoch needed to clarify her view

about 15 hours ago
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Nigel Farage condemned over call to ban public prayer for Muslims in the UK

Muslim leaders have condemned Nigel Farage’s call to ban public prayer by Muslims in the UK as bigoted and warned of a “growing tide of hate” after the Conservative leader, Kemi Badenoch, questioned whether the events fitted “within the norms of British culture”.Farage was speaking at the launch of Reform UK’s manifesto for the forthcoming Scottish parliament elections when he made the remarks.He described as “a wake up call and a warning to everybody” an event in Trafalgar Square earlier this week where hundreds of Muslims and people of other faiths prayed together, before the celebration of Eid.He said the event, organised by the Ramadan Tent Project and attended by Sadiq Khan, London’s mayor, was “an open, deliberate, wilful attempt, not at the private observance of a different religion, but the attempt to overtake, intimidate and dominate our way of life”.The event has happened in the historic square in central London five times before without incident or previous controversy

1 day ago
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Here’s what a reformed House of Lords could look like | Letters

A reformed Lords could give us the best of all worlds: a chamber that connects and legitimises the disparate parts of our higgledy-piggledy devolved constitution without challenging the primacy of the directly elected Commons (So long, hereditary peers – but the Lords is still full of absurd anachronisms, 13 March).Three-quarters of its members could be indirectly elected by local councillors, with temporary seats reserved for the heads of the national governments and regional mayors. Party leaders not yet in the Commons – such as Zack Polanski – could also sit there. The remaining seats could be time‑limited appointments for experts such as retired civil servants and former ministers, perhaps with different voting rights. An independent commission could oversee appointments, vet eligibility and weed out dodgy donors

1 day ago
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Harry Barnes obituary

It was probably inevitable that the former Labour MP Harry Barnes, who has died aged 89 of cancer, would have very well delineated political views when he arrived in the House of Commons. He was already middle-aged, and had spent much of the previous three decades studying politics, first as a mature student and then working as an extramural lecturer on the subject, teaching others who were likewise seeking a second chance at education later in life.Barnes, who represented North East Derbyshire from 1987 until 2005, was a serious politician, a man of principle and conviction, but also someone who recognised the need for political flexibility in evolving circumstances.He was never constrained by ideology and was constantly in pursuit of what could be a possible new route to resolve existing problems, notably in Ireland. Always on the left of the Labour party, he was a serial rebel against his own frontbench, while simultaneously writing polite notes to the chief whip to explain his latest defiance

1 day ago
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FCA investigates collapsed lender MFS amid £1.3bn mortgage scandal

about 6 hours ago
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UK borrowing costs hit highest since 2008 as markets expect up to three interest rate rises

about 6 hours ago
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Fire experts ‘kept awake’ over growing hazard of lithium-ion batteries

about 11 hours ago
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Essex police pause facial recognition camera use after study finds racial bias

about 11 hours ago
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World’s top-rated Flat horse to race in Dubai despite conflict in the Gulf

about 7 hours ago
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Hodgkinson shrugs off kit mishap to cruise into world indoor 800m semi-finals

about 8 hours ago