And we rightfully blame all of this on Logan.

QuoteIslamic transactions have much in common with westThe central religious precept driving the Islamic finance industry is the idea that riba (a word that can be translated either as “interest” or “usury”) is haram (“forbidden” or “sinful”).At first glance, this appears to rule out most aspects of modern finance. But although the Koran bans the creation of money, by money, it does allow money to be used for trading tangible assets and businesses – that can then generate a profit.Consequently, what most Islamic financial products do is create “trading” or “business” arrangements that pay profits to investors (or lenders) from business transactions backed by tangible assets, ideally sharing risk and rewards.Some of these financial schemes, such as those known as mudaraba and musharaka, look similar to western-style venture capital projects. In the murabaha scheme – which is widely used in Islamic banking – an exchange of tangible goods is used to provide profits. Another popular scheme is ijara, which is similar to western-style lease financing.The details of these schemes are often complex, since they involve special-purpose vehicles. However, in practical terms, they produce products that can be similar to western banking products – aside from the fact that the margins charged by banks are often much higher.Take sukuks (Islamic bonds). These have maturity dates, coupons and yields. However, what differentiates sukuks is that they are backed by cash flows from tangible assets. Last year, for example, the government of Pakistan issued a $600m (€468m, £321m), five-year sovereign bond, using the tolls from a motorway to provide payments.Ironically, some of these structures and techniques echo those that flourished in Christendom in Europe between the 12th and 15th centuries. The Christian Council of Nicea (in 325) banned the practice of usury among the clergy and in 1140 this principle was extended to church members.However, when trade expanded in Europe from the 12th century onwards, merchants at trade fairs became adept at constructing financial transactions that avoided religious censure. Loans were sometimes considered to be “rent charges”, or interest payments were classified as “damnum emergens” (opportunity loss) or “lucrum cessens” (forgone income), which were permitted by the church. Another popular scheme was the “contractus trinius”, a three-way “partnership scheme”.Periodically, the church sought to tighten the rules. However, the merchants proved adept at developing schemes in response to this. Meanwhile, Jews were permitted to continue money-lending since it was presumed that they were already excommunicated. These practices eventually died out in the 16th century, when the church loosened its ban on usury payments.

QuoteUK's Brown backs Islamic finance Chancellor Gordon Brown has pledged support for the growth of Islamic finance, saying the UK can act as "a gateway" for the growing industry. He told the Islamic Finance and Trade Conference in London he wanted to make the UK a centre for Islamic investment. He called for stronger trading links between the UK and Muslim countries as well as global trade reform. Under Sharia Islamic law, making money from money, such as by charging interest, is not permitted. 'Alternative approach' In a speech to the conference, which was organised by the Muslim Council of Britain (MCB), Mr Brown said the UK was "well placed" to become a gateway for Islamic trade and finance. Freer trade would boost economies in the Middle East in particular, he said. He emphasised recent regulatory reforms which have ensured that financial frameworks are compliant with Sharia law. The value of Islamic banking has risen sharply in recent years, with many of the world's largest banks offering financial products based on Islamic interest-free models. The MCB said the conference was about more than consolidating existing trading relationships. MCB secretary-general Dr Abdul Bari said: "We all know that the current climate of tension calls for an alternative approach, one that promotes peace and dialogue, and the trade and financial markets are an ideal platform for this."

Well debated DCFC ! Valid points ! Long live Great Britain and British Banking ! a small country but a great one at that , the country of Paul Wilmott !

Deutsche Bank introduces Sharia-compliant mutual funds