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eric pebble

Banks Are Overvaluing Toxic Property Loans, Experts Warn

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Banks are overvaluing toxic property loans, experts warn

Taxpayers could foot bill for inflated valuations of assets in government's protection scheme amid talk of potential 'fraud'

Banks are significantly overvaluing assets to be included in the government's insurance scheme, which could leave the taxpayer footing the bill for any shortfall, experts have warned.

Property loans - which will be part of the £575bn government's asset protection scheme (APS) to ring-fence the most toxic assets of Lloyds Banking Group and Royal Bank of Scotland - will be dated as of the end of December 2008 although commercial real estate values have fallen by just over 10% since then, according to data from the consultancy Investment Property Databank.

Matthew Oakeshott, the Liberal Democrat Treasury spokesman, said: "The APS is a ticking time-bomb for the British taxpayer. These poisonous property loans must have an independent, up-to-date valuation in accordance with the Rics [Royal Institution of Chartered Surveyors] valuation 'red book' when taxpayers actually go on the hook.

"If not, the APS will be a fraud on the British taxpayer - just like someone insuring a car after it has crashed."

And the last line:

""Our government must not sweep this £500bn problem under the carpet until after the election.""

Read all here: - http://www.guardian.co.uk/business/2009/se...property-assets

Does this surprise me? Er..... Nope. :rolleyes:

Edited by eric pebble

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How long have we been talking about the feckin banks blatantly overvaluing stuff on this site?!

Why does it take this long for them to figure it out?

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Heeeelloooooooo!

banks using Mark to Model to remain legal Shock Horror.

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& still the masses (who have a job) will get up & go to work in the morning.

The scams will escalate until the UK public are willing to take direct action.

No chance. Those that have brains will never get enough support.

Solution? - Vote with your feet.

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Erm, don't see much there to surprise anyone-on-HPC.

But an observation that might suggest the contrary: Lloyds is making huge efforts to get itself out of the asset protection scheme. Evidently someone takes the view that those HBOS losses have now been adequately priced in and won't hit them too hard after all!

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Erm, don't see much there to surprise anyone-on-HPC.

But an observation that might suggest the contrary: Lloyds is making huge efforts to get itself out of the asset protection scheme. Evidently someone takes the view that those HBOS losses have now been adequately priced in and won't hit them too hard after all!

:lol:

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They shouldn't be valued by the banks. They have proved themselves to be incompetent and untrustworthy.

Careful Errol. The bunch of thieving shysters are now able to hire the best lawyers to deal with such remarks;

& all thxs to the UK tax payer :)

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They shouldn't be valued by the banks. They have proved themselves to be incompetent and untrustworthy.

+1

IMPO Bankers should be told they are in "care taker" roles only whilst the appropriate authoritahs prosecute the guilty and the end result would be everyone involved in this sorry mess be banned from holding any position above trolley boy at asda

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They shouldn't be valued by the banks. They have proved themselves to be incompetent and untrustworthy.

Who else should value it then? The banks are the experts... :ph34r:

But this does raise an interesting dilemma who would you trust to value the assets.

Clearly govt would value too high to preserve the banks.

Those who would seek to undervalue may do significantly to pick up assets on the cheap to make a profit.

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Who else should value it then? The banks are the experts... :ph34r:

But this does raise an interesting dilemma who would you trust to value the assets.

Clearly govt would value too high to preserve the banks.

Those who would seek to undervalue may do significantly to pick up assets on the cheap to make a profit.

thats easy, they put one on the market and see what people will pay for it. that values them all.

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Who else should value it then? The banks are the experts... :ph34r:

But this does raise an interesting dilemma who would you trust to value the assets.

Clearly govt would value too high to preserve the banks.

Those who would seek to undervalue may do significantly to pick up assets on the cheap to make a profit.

Member of my family worked for Barclays Capital and the word was that they didn't want the government bailout because they would have to reveal how much toxic stuff they own.

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