Rbs And Lloyds Sell Repossessed Properties To Subsidiaries

[@contradevian]

Hope you can find it should be an interesting read.

Is another loot going on right now?

http://gregpytel.blogspot.com/2009/08/is-a...ing-on-now.html

[Bloo Loo]

The 2 highlighted statement appear to conflict. If it's sold at a knockdown price, surely that leaves a loss for the bank.

The only thing I can think they are doing is having the subsidiary buy them at 50% off but list them on the books at 100% value so overall the bank looks zero-sum... although the debtor has obviously been screwed over... or does the debtor get their NE wiped out too, in which case, it can't be zero sum?

None of it makes sense, however, the paper DOES have the name of the subsidiary, which suggests SOME truth.

It is a scam. first they have possessed a house for say a £100K debt. they cant sell it. so the 100K is not going to be recovered.

so what do they do...they set up a shell company, lets call is SIV Ltd. they fund SIV with 75K...then sell the house to SIV.

SIV now has no money but a debt to the bank of 75K, and house they cant sell....

course the bank has closed the book on the loan and written off 25K, and now has an asset (SIV Ltd) of 75K.

they STILL dont have the 100K...they now have 75K SIV and 25K write off.

total scam. and the owner of the property can scarcely complain.

Edited August 24, 2009 by Bloo Loo

[eric pebble]

It is a scam. first they have possessed a house for say a £100K debt. they cant sell it. so the 100K is not going to be recovered.

...../

total scam. and the owner of the property can scarcely complain.

Geezz -- This country is doomed.......

[grumpy-old-man-returns]

Now I see.

& that's exactly why I don't believe the stat's.

I just don't understand why people have such faith in VI stats & a government riddled with lies.

no aimed at you directly btw.

This is a depression, so the tricks & lies will be of the highest standard. Even the clever people will be fooled.

[interestrateripoff]

5. Once the banks run out of cash, we will have another liquidity crisis. The value of the toxic waste will again go to the floor and, again, the banks will be undercapitalised. Is the government going to put even more taxpayers’ money again to prop up the system? As explained in "The largest heist in history" since the notional value of toxic waste goes into quadrillions of dollars, there could be no end to this cycle. If the government puts even more cash, the story will repeat again.

6. The banks' public relations machine seems to have started preparing the government and the public for a such scenario by talking about possible â€double-dip recession†(the second dip, i.e. another liquidity crunch, is coming…), possibly developing to â€multiple-dip recession†scenario.

7. The offshore institutions that got the cash will hold to it. In a squeezed market, short of cash, they will be able to start cherry-picking the assets at a knockdown price.

Interesting but why did he have to mention quadrillions, that statement isn't credible. Getting overexcited with the keyboard?

[@contradevian]

Interesting but why did he have to mention quadrillions, that statement isn't credible. Getting overexcited with the keyboard?

Don't know, but if they are buying their own repo's they do not need much cash do they? They are merely swapping one "asset" class for another, a toxic loan for a house. Doesn't seem a bad deal. Exchanging a toxic loan which is worth nothing for a house thats worth something. Unless that toxic loan is now held by the taxpayers and the banks now have freshly printed cash sitting in an offshore bank account somewhere. I'd say the banks need to account for what they are doing, but as that is never going to happen under the current `regime.` In fact they are the `regime!`