This is daily phenomenon India.Of course not Banks, all the time, but on a regular basis by Non Banking finance companies(what a name?).
People have lost millions and continue to invest either in the same company in a new name or a new company offering the same services(?)
Border line companies are international Banks offering credit cards and facilities with a fine print.Difference is they operate on the thin line between usury and loan sharking; in many a case out right cheating.
So long as gullible and greedy people are around these scamsters will thrive.
An Icelandic bank that signed up tens of thousands of UK customers before it collapsed in October 2008 is under investigation by the Serious Fraud Office.
Kaupthing attracted more than 30,000 individuals, companies and organisations in the UK to its Kaupthing Edge account.
The SFO will examine whether the bank misled savers to encourage deposits and investigate why large sums flooded out of the bank in the days before it failed.
An SFO spokesman said, “This is a complex investigation which crosses numerous jurisdictions.
“We have been working closely with the Icelandic Special Prosecutor’s Office to ensure that comprehensive and robust investigations are conducted both in Iceland and the United Kingdom and to ensure that there is no duplication of effort. We will continue to do so.”
Anyone wishing to share information with the Serious Fraud Office on this case can do so at via this Serious Fraud Office secure survey.
Kaupthing’s UK savings business and those of Landsbanki were bought by Dutch bank ING at the height of the crisis, when Chancellor Alistair Darling stepped in to guarantee deposits.
Local authorities lost almost £1 billion investing in Icelandic banks while UK charities took a £120 million hit, MPs on the Treasury Select Committee said this year.
The Icelandic government had to nationalise three banks after the trio racked up debts equivalent to six times the country’s national output and credit markets froze in the wake of Lehman Brothers’ collapse.
Landsbanki and another Icelandic bank, Glitnir, were the first to fall, but Mr Darling was blamed by the Icelandic government for bringing about the collapse of Kaupthing after using anti-terrorism laws to seize Landsbanki’s UK assets.
http://news.sky.com/skynews/Home/Business/Serious-Fraud-Office-Probes-Icelandic-Bank-Kaupthing-Under-Investigation/Article/200912315501827?DCMP=EMC-news_OBU