Friday, Aug 21, 2009
Caught out? Aiding and abetting their own bad debts, more like.
Telegraph: Mortgage fraud: how lenders have been caught out
Considering the banks were the ones telling their customers to falsify applications, this smacks of shamelessly hiding the facts in the public mind.
"Mortgage fraud will cost Britain’s lenders at least £1bn, according to accountants BDO Stoy Hayward. We look at the ways the fraudsters have caught out lenders, costing Chelsea Building Society £41m and Bradford & Bingley £271m in writedowns."
Posted by dohousescrashinthewoods @ 01:47 PM (638 views) Add Comment
8 Comments
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1. will said...
If fraud is suspected by any bank, then it should be reported to the Police. 'Written down' means the Banks are implicit in the fraud and don't want the police invloved.
2. will said...
If fraud is suspected by any bank, then it should be reported to the Police. 'Written down' means the Banks are implicit in the fraud and don't want the police invloved.
3. mrflibble said...
Lenders haven't been caught out at all, they were part of the whole stinking racket from day one. They would still be at it now if the ponzi scheme hadn't collapsed around them.
Nobody was interested in calling time on this racket at any level of play. Sensible lending is based on 3.5x a single income with a 10% deposit. This evolved into joint incomes, then onto higher multiples of joint incomes, then onto lending at 100% value and beyond, then onto fantasy deposits paid via developers on over-inflated prices. Not sure what would have come next if the racket had continued...
4. p. doff said...
Don't be too quick to blame the banks. It was often dodgy mortgage brokers who 'packaged' a bogus self-cert deal for applicants via the back door. This used to annoy the hell out of the mortgage advisers working for the bank who had often previously refused the same applicant.
5. clockslinger said...
If Plod had been interested at any time over the past fifteen years it would have been a walk in the park to obtain overwhelming amounts of evidence against virtually any eatate agents in house mortgage advisor for aiding and abetting uncountable acts of false accounting (making an entry which you know or believe to be false on a mortgage application will do it nicely thank you...as it is a document used for an accounting purpose and all). But Plod didn't and doesn't want to know. And of course, "we were all at it" weren't we? Get in on that property ladder and make a hundred grand for no effort. The truth has always been that it suited the banks and the builders and all those millions of overborrowers I am now subsidising.Still it is all harmless really isn't it, so let's not rock the boat by enforcing the law.
6. bidin'matime said...
The banks were all just turning a blind eye, believing that rising prices would cover them. Then when they were proved wrong, the taxpayer had and still has to step in. Crooks, the lot of them.
I read recently of someone whose great grandfather (or maybe great great) had been a bank director in the late 1800's - the bank went broke and the directors all went to jail. The family had a grand portrait of the guy, which had been shut in the attic ever since his downfall. Lack of accountability is at the heart of all of our recent problems.
7. icarus said...
spot on, clockslinger, bidin', mrflibble. That's the f(_)cking nature of a bubble - everybody's in on it. Everybody, including the government, is driven by short-term results. If the next guy's doing it then you've got to do it. If he's making 10% p.a. and you're making 5%, you either join him or you're toast - the shareholders will put their money with mr 10%. Those who stood up and said "this is unsustainable" were shown the door. Plod? government? banks? regulators? Don't make me laugh. Nobody stands up against the tide.
8. Ndg said...
This article, and almost every other article published by the main stream press, seek to cloud your mind and blur your vision.
It is obvious that you, me and everyone (the whole world) have been conned. The only question worth asking is; by whom?
If we're dumb enough to focus on the results of the con and merely speculate on what may occur next we are missing the point. The point being that "let's move forward" is not a solution. "Let's look backwards" will provide a solution.
Only then can we discover the answer to the only question worth asking. Humanity is behaving like a dog. No disrespect to dogs - just trying to make the point that anticipating the future cannot cure our problems.
Can anyone else see the size of this far-queueing huge trojan elephant that's standing on everyone's feet? Is anyone else interested in exposing the small minority of greedy fat pigs sheltering inside the elephant? It would make a good start. So far, we (rational thinking human beings) have done absolutely nothing to address the real issue.
In short, stop behaving like a dog. It's time to gut the elephant and stomp the pigs.