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Hbos Loan Irregularities Alleged

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So, looks like HBOS didn't even have the internal staff with skills to write/support/check business loans.

Like I have said before, unfit for purpose. These companies are not required in the economy and certainly not entitled to any taxpayer money.

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I listened to the trailer for this on the radio this morning and it sounded like HBOS had turned into a compulsive uncontrolled gambler. This dos have traits of Enron, where divisions are operating independently of any central control.

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I listened to the trailer for this on the radio this morning and it sounded like HBOS had turned into a compulsive uncontrolled gambler. This dos have traits of Enron, where divisions are operating independently of any central control.

It's dem bonusus wot made me do it your honour.

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A BBC News investigation has uncovered alleged lending irregularities at HBOS, the bank now owned by Lloyds.

whats surprising is "A BBC News investigation"

http://news.bbc.co.uk/1/hi/uk/8059899.stm

What's not surprising is "lending irregularities at HBOS"

The loans from HBOS's "high risk" unit between 2002 and 2007 are said to have led to losses at the bank of £250m.

I wonder what bonuses were paid, at the same time such losses were being made. A substantial sum no doubt, one which should be added to the £250m to find the true loss figure.

Jane Moore

Dispatches C4 18/6/09

Chief Executive Sir James Crosby was in charge at HBOS from 2001-2006. The bank grew at an amazing pace. According to one former HBOS risk manager, it was driven by greed and excessive risk taking.

Paul Moore Former Head Of Risk, HBOS

Dispatches C4 18/6/09

The remuneration system for the executives was all based around growing the assets. Primarily all the executives earned their money through selling more & more.

Of course the consequence of that is, that it drives a culture and forces the front line staff to do things they don’t necessarily think are right.

I remember one member of staff saying to me we could never hit our sales targets and sell ethically, that was rather a pertinent point.

Ultimately the greed and pride drove everything that the bank was doing and it was about increasingly selling more and more loans.

I think 2005 they borrowed more money in the wholesale money markets as they’re called than the Italian government!

Jane Moore

Dispatches C4 18/6/09

As HBOS grew so did the executives pay packets

Edited by investigate

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So, looks like HBOS didn't even have the internal staff with skills to write/support/check business loans.

Like I have said before, unfit for purpose. These companies are not required in the economy and certainly not entitled to any taxpayer money.

A couple of years ago when I was questioning the wisdom of some of the loans with someone from that particular bank, the response was 'if we don't lend one of the Icelandic banks will'. That was probably the prevailing attitude to larger loans, I'm not sure there was ever much interest in business plans.

There was a similar level of uninterest in business plans for loans to smaller businesses. In this case it was 'do you have a house?', 'how much do you think it's worth?' swiftly followed by 'here's that amount as a loan'.

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What's not surprising is "lending irregularities at HBOS"

The loans from HBOS's "high risk" unit between 2002 and 2007 are said to have led to losses at the bank of £250m.

I wonder what bonuses were paid, at the same time such losses were being made. A substantial sum no doubt, one which should be added to the £250m to find the true loss figure.

Jane Moore

Dispatches C4 18/6/09

Chief Executive Sir James Crosby was in charge at HBOS from 2001-2006. The bank grew at an amazing pace. According to one former HBOS risk manager, it was driven by greed and excessive risk taking.

Paul Moore Former Head Of Risk, HBOS

Dispatches C4 18/6/09

The remuneration system for the executives was all based around growing the assets. Primarily all the executives earned their money through selling more & more.

Of course the consequence of that is, that it drives a culture and forces the front line staff to do things they don’t necessarily think are right.

I remember one member of staff saying to me we could never hit our sales targets and sell ethically, that was rather a pertinent point.

Ultimately the greed and pride drove everything that the bank was doing and it was about increasingly selling more and more loans.

I think 2005 they borrowed more money in the wholesale money markets as they’re called than the Italian government!

Jane Moore

Dispatches C4 18/6/09

As HBOS grew so did the executives pay packets

I would say significantly more blame for impairments at HBOS lies at the feet of Peter Cummings than this division that's currently got the media's attention.

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This is on Radio4 now.

F*cking unbelievable. Here was the scam for one lass...

HBOS Reading had growing corporate clients. As a pre-requisite to lending any money to one particular business, the company had to agree to taking on a non-executive director (at £2k per week) plus a 60k arrangement fee (later reduced to 20k by a court).

This non-exec then pissed the company's loans up against the wall the point, at which point the company was forced into administration, to then be bought out by companies associated with the non-executive Director.

The lass lost the business and her marriage went south leaving her penniless.

275m loaned to just 13 companies of which 90% evaporated.

As likely, nothing will be done to mend the damage these financial spivs have caused until one of them is burned alive by an irate ex-customer.

Edited by linuxgeek

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A couple of years ago when I was questioning the wisdom of some of the loans with someone from that particular bank, the response was 'if we don't lend one of the Icelandic banks will'. That was probably the prevailing attitude to larger loans, I'm not sure there was ever much interest in business plans.

There was a similar level of uninterest in business plans for loans to smaller businesses. In this case it was 'do you have a house?', 'how much do you think it's worth?' swiftly followed by 'here's that amount as a loan'.

I disagree slightly over "business plans not being important" for smaller business. A chap I used to freelance for used to use alot of bank finance and he always used to us a "Business plan writer" at £1000 a throw. The plan was pretty much fiction and waffle, but it ticked all the boxes at the bank and you got the loan.

I've never really understood the point of a business plan for small businesses .. There seems to be a whole industry around writing them .. but they don't tell anyone anything about the business .. and I would be pretty suspicious of any business you could not describe in a sentence .. in words everyone could understand .. (But I can't explain what I do to in one sentence.. which may be a flaw in my reasoning).

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As likely, nothing will be done to mend the damage these financial spivs have caused until one of them is burned alive by an irate ex-customer.

I'll fetch some matches.

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I'm willing to bet with pretty much anyone on this one that no person is found to be responsible ..

(Any 10p mind .. )

Much more likely someone will find themselves on the honurs list as opposed to being found responsible

Your 10p is safe, although probably not quite as safe as it would have been when ex head of HBOS James Crosby was in his role at the FSA, talk about letting the fox guard the chickens.

HPCJamesCrosbyPerpetratorOfMortgageFraudThread

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A couple of years ago when I was questioning the wisdom of some of the loans with someone from that particular bank, the response was 'if we don't lend one of the Icelandic banks will'.

"We know you're a high risk and we don't think we should lend the money. However, as somebody else is willing to offer it to you instead then lets just ignore that pesky issue of risk management!"

Edited by Kyoto

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A couple of years ago when I was questioning the wisdom of some of the loans with someone from that particular bank, the response was 'if we don't lend one of the Icelandic banks will'. That was probably the prevailing attitude to larger loans, I'm not sure there was ever much interest in business plans.

There was a similar level of uninterest in business plans for loans to smaller businesses. In this case it was 'do you have a house?', 'how much do you think it's worth?' swiftly followed by 'here's that amount as a loan'.

"We know you're a high risk and we don't think we should lend the money. However, as somebody else is willing to offer it to you instead then lets just ignore that pesky issue of risk management!"

If only that was their thought process

More like "We know you're a high risk and we don't think we should lend the money. However, by forwarding the loan me & my colleagues will be in line for juicy bonuses, so consider it done"

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So, looks like HBOS didn't even have the internal staff with skills to write/support/check business loans.

Like I have said before, unfit for purpose. These companies are not required in the economy and certainly not entitled to any taxpayer money.

Yup. It is a national SCANDAL. Watch The Money Programme documentary made over 5 years ago in 2003/4!! - click in my signature below - Along with Northern Crook and B&B, [and many others] HBOS were ACTIVELY committing MASSIVE fraud by URGING people to take out

LIAR LOANS...

Why have there been no major prosecutions of executives/directors of these lenders? :angry: :angry: :angry:

Edited by eric pebble

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It's dem bonusus wot made me do it your honour.

We are going to spend millions cleaning up a mess that could have been stopped years ago.

This county is well and truly F****D. :angry:

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