Wednesday, Nov 26, 2008
Banks to be forced into privatisation
The Times: Lord Mandelson will force banks to open coffers
"Lord Mandelson is to insist on the banks signing up to a new code of good lending practice. The current plan is for it to be voluntary but The Times has been told that if the banks do not improve their performance it could become a legal regulation to be policed by the FSA."..............WTF????????...
Posted by titaniccaptain @ 12:29 AM (649 views) Add Comment
12 Comments
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1. little professor said...
WTF indeed. How on earth could they possibly put this into practice?
2. titaniccaptain said...
I like this comment
"The issue is that banks are no longer willing to lend at the required income multiples and high LTVs to support the still overvalued house prices. A significant correction is still required."
3. Rimmer said...
I read this and thought actually who wants a loan that cant get one?
There you go i will ask Gordon, Mandy,Badger and you all the question again " Who wants a loan and cant get one"?
Now we all know Busnesses can get credit but what Mandy wants is the rate cut - not a bad idea in truth but unless you want to see £ - Billions and i mean ££££ Billions leaving the UK there has to be at least 6-7% return on investments, what bank can offer that to an investor and lend at 3%?
As for mortages well banks again dont want to lend vast sums of money at low rates of return when they know A/ The asset value ( ie house ) is correcting . B/ They need all their ( Our ) Funds to keep themselves solvent C/ They have been had over once already and D/ Its risky lending without collateral
I think they are playing at gods now and to be honest believeing their own B*llS*it - Its bordering on communism if they carry it out and would be a sad day ( Democratically ) if it happens.
Maybe if they Upped rates the banks would attract more money and have more funds to lend !!!
4. Rimmer said...
Titaniccaptain
Quote
I like this comment
"The issue is that banks are no longer willing to lend at the required income multiples and high LTVs to support the still overvalued house prices. A significant correction is still required."
*** Sadly i find it very hard to understand the fact that all the banks have been bailed out with all the redundancies and loss of long term bonuses etc that things would be any different, The US and UK funded the debt with £>>>>> Billions to the banks..............................that still leaves the problem of why it occured in the first place ......................Isnt it obvious to a school kid that we cannot go back ***
5. Rimmer said...
Sad days really when all our leaders can talk about are the price of houses to save an economy - even if they do ease lending surely its still going to ultimately fail as household costs will rocket to pay for this lots folly.
Taxes are goin to Rocket !!!!!!!!!!!!!!!!!!!!!!!!!
6. Puppee said...
how can the force banks to lend out more then people can afford overvalued property and stupid multiplies of earnings and liar loans caused this mess so the answer is simple slash property prices now by 60 to 75% job done why they won't do it is because they and all their rich mates have invested all their money in property so they will do everything in their power to keep property prices high but they can't force people to borrow or to buy these overpriced properties
7. Bertywooster said...
This idea is so stupid it's difficult to know where to begin but here's 3 thoughts.
1. Is it legal under UK and EU law? 2. The government having forced banks to lend would become responsible for the debt. 3. What is the lending criteria for the forced loans?
This PM is desperate to win the next election at any cost but I don't want to pay the bill.
8. planning4acrash said...
Sounds like Soviet style centrist planning.
Welcome to the People's Socialist Republic of the Once Great Britain.
9. titaniccaptain said...
@P4AC
Thats exactly what it sounds like
10. titaniccaptain said...
well said rimmer
11. afrobaggie said...
Have Badger, Bodger and Scarpet been reading The Communist Manifesto again?
12. handle_it said...
** Under the Crosby proposals, government guarantees would be auctioned to the highest bank bidder. Banks would use the guarantees to gold-plate their issues of mortgage-backed securities, making them much more attractive to investors. Demand for these securities has evaporated, turning off key funding for banks. **
Much more attractive ? Everyone knows that asset prices are too high ? So guaranteeing a loan against it will be paid by presumably printing more money to pay for it's inevitable default. How can this even be considered ? More to the point - what is behind this idea ? We all know it won't or can't work - they know it won't work.. So why ?? The only banks left will be nationalised ones - at least in principle if not in name. So only businesses that are singing from the right book will get funding - Who decides ? Ahhh there we have ! If you have a job you'll be working either in the private sector or a government backed company. If you have a home you will be completely dependant on the will of the government to let you continue living there or not. You will play by their rules it would seem ?