AN EAST Londoner has served his council yesterday with a notice legally objecting to the authority’s “irrational” bank borrowing.

Angus McNelly requested a High Court declaration that the London Borough of Tower Hamlets went against constituents’ interests by taking £77.5 million in lender option, borrower option (Lobo) loans.

The loans were made by Barclays and RBS between August 2007 and September 2009 and under the Lobo lending agreement, interest rates can be raised by the bank at any point.