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Building Society Rules To Tighten

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Building society rules to tighten

/Snip/

Risks ignored

At the annual conference of the BSA last month, a senior FSA official openly accused some societies of taking far too many risks with their lending in the past few years, and of ignoring earlier warnings from the FSA about what they were doing.

"We have seen unsustainable margins on prime lending, over-ambitious growth targets and a risk appetite that was too great," said Hugh May of the city watchdog.

"The fact remains that a number of societies did not act sensibly at the onset of the crisis and some saw it as a business growth opportunity. We see that as a fundamental error, as was carrying on or even starting commercial and high-risk lending in 2008."

The FSA believes that, when some societies diversified from their traditional business of using savers money to offer mortgages, this increased the financial risks to those societies.

/Snip/

Eric, this'll mean less liar loans. It will also likely push down the lending capabilities of these organisations further. No wonder things are on the turn and prices rises again!

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The FSA have no intention of regulating the market, If they had they would have done so already and we wouldn't be in this mess, same goes for everything they regulate. Pure lip service to their mandate.

Like judges, the more mess they create the more of them are employed in their little club and the bigger the wages and commissions.

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Building society rules to tighten

Eric, this'll mean less liar loans. It will also likely push down the lending capabilities of these organisations further. No wonder things are on the turn and prices rises again!

Loud clanging of stable doors.

FSA covering their arses after the event.

Their job was to regulate and they failed - now they want to kick the small kid in the playground and pretend their good cops after all.

If they'd regulated the market properly in the first place building societies would not have been put in the invidious position of losing market share versus buying toxic rubbish.

This is simply a cover - the real scandal now is how taxpayers and building society depositors are bailing-out the corrupt bankers.

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Why should any lender buy your house, business or dream for you...surely anyone who wants something should be prepared to put some of their own money and effort into it up front.

Show the courage of your convictions.

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The FSA know that Cameron is coming for them and are desperate to demonstrate their utility- just a pity it's years too late.

They did nothing when it mattered, and don't dare do anything now for fear on trampling on the fabled 'green shoots.'

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Why should any lender buy your house, business or dream for you...surely anyone who wants something should be prepared to put some of their own money and effort into it up front.

Show the courage of your convictions.

Absolflippinglutely.

It makes me utterly cross if I go on MSE and see people saying "I earn 73k a year but I've not managed to save a deposit, what mortgage can I get."

no deposit saved by self should be no mortgage.

no business plan and money contribution should mean no business loan.

it make so much sense not to p&ss money up a wall!!!!!!!

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I don't think the word "Authority" means what he thinks it means.

FSA = Financial Services Advisory?

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The interesting thing to note here is that the building societies themselves aren't afraid of risk. They expect to go bust, it is only a question of when. In the mean time they make lots of money.

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