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eric pebble

Sub-prime Lender Sacks Executives Over £700m Accounting Hole

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Sub-prime lender sacks executives over £700m accounting hole.

Cattles reveals managers jeopardised firm by failing to make proper provision for bad debts

http://www.guardian.co.uk/business/2009/ju...acks-executives

Ha! A fraud on top of another fraud! :D:rolleyes:

The pyramid scam has totally collapsed... and the rats are scurrying off the decks, fast.... :rolleyes:

Edited by eric pebble

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Honestly if you wrote film script or book with all of this in no one would believe it.

It's just too surreal for words.

Yup -- The WHOLE pyramid needs to be dynamited - and for us to start all over again -- and maximum = 3 x salary set in statute law - 40 years prison sentence to anyone who tries to beat this....

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Go on then, someone try and explain to me the differnce between the following 2 actions.

This followed an investigation that revealed "a breakdown in controls" which resulted in bad debts being deferred from one year to the next and the extension of repayment terms on underperforming loans to avoid making a loss provision in the accounts.

http://www.publications.parliament.uk/pa/c...acc/394/394.pdf

Following nationalisation, the new management team at Northern Rock discovered

that the company had capitalised arrears on its mortgage book at a much earlier stage than

other lenders. As a result, the performance of Northern Rock on arrears compared to other

banks looked better than it actually was. The auditors of the company had previously

missed this understatement of arrears.

remeber the fabled 'quality' of NRs loan book in the early days - 0.5% as opposed to industry average of 1%. Even the monkey admin staff at NR knew about this practice and that the figures were wrong.

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Guest KingCharles1st

If this one breaks on the BEEB, then we know they are changing sides, and that Gordon and his merry little band of Financial Buccaneers is about to walk the plank

OH, and by the way- Hi Peston- how's it going mate?

Edited by KingCharles1st

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James Corr, the finance director, and Ian Cummine, the chief operating officer, who co-founded the Welcome business, were told their suspensions would be made permanent. This followed an investigation that revealed "a breakdown in controls" which resulted in bad debts being deferred from one year to the next and the extension of repayment terms on underperforming loans to avoid making a loss provision in the accounts.

Common practice when I worked there 8/9 years ago. If a customer couldn't pay, you could 'defer' the arrears onto the end of the loan subject to qualifying criteria (eg that the customer had made a contracual payment in the previous month).

This made the companies bad debts look a lot better than they were. ( and as such i guess they themselves had access to cheaper rates from the city). We were also encouraged to refinance bad loans which had the same affect - old, bad debt settled - new account with no arrears ! magic.

Simply putting back the inevitable, much like UK plc, Gordon.

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Fraud. Hiding the true nature of the loan book from those who bought up the packaged dross.

Obvious fraud is a thing to be supported, bailed out and encouraged in NuBritain.

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So we have two examples now of endemic fraud within lending organisations and ex staff to vouch for thepractice and yet no prosecutions?

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Common practice when I worked there 8/9 years ago. If a customer couldn't pay, you could 'defer' the arrears onto the end of the loan subject to qualifying criteria (eg that the customer had made a contracual payment in the previous month).

This made the companies bad debts look a lot better than they were. ( and as such i guess they themselves had access to cheaper rates from the city). We were also encouraged to refinance bad loans which had the same affect - old, bad debt settled - new account with no arrears ! magic.

Simply putting back the inevitable, much like UK plc, Gordon.

and in the meantime booking the rolled up interest as turnover.

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