Sunday, Sep 21, 2008
Continued market chaos and UK mortgage frauds
Observer: Wall Street worries the crisis is not yet over
Politicians on both sides of the Atlantic will be watching the markets anxiously tomorrow, amid fears that the euphoria that greeted Treasury Secretary Hank Paulson's plan to rescue American banks will give way to a renewed slump in the price of shares.
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UK banks probe massive mortgage frauds by criminal gangs as Bradford & Bingley lose £15m
Posted by mken @ 01:19 AM (780 views) Add Comment
4 Comments
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1. paul said...
"Bradford & Bingley alone has written off £15m to criminal gangs who organised frauds involving applications from dishonest or bogus borrowers. Police believe a number of shady brokers and solicitors overstated the value of a large number of houses."
I'll bet that at the time when these deals were being brokered, Bradford & Bingley would have been 'unavailable for comment' on the suspicion that fraud was involved.
Crooks in bowler hats.
2. This comment has been removed as it was found to be in breach of our Blog Policies.
3. bystander said...
I meant 'oversee' and 'models'
4. mdmick said...
I looked up 'straw borrower' - it makes me imagine a drinking straw otherwise.
http://www.fraudproblem.com/straw-borrower/
It is not necessarily the case the straw borrower is a criminal, it seems.
What puzzles me is how the criminals involved expect this not to catch up with them. Do they disappear to another jurisdiction?
Maybe, during the boom in house prices, the properties did become worth the lie amount. And maybe the valuers assumed that this would cover their lie.