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Investors Fear Ulster Bank Will Pursue Them For Loans

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From the property pin

Sunday business post

http://www.sbpost.ie/themarket/investors-fear-ulster-bank-will-pursue-them-for-loans-53669.html

Since The UK taxpayer is bailing out the Ulster Bank I hope they pursue these investors to the ends of the earth.

This absurdly risky scheme should not be legal. The borrowers and lenders both bear responsibility. As you see the interest has returned to haunt with the cost of 'paying off' becoming far more than the prinicipal borrowed. I do think that pragmatically, the sensible sounding offer described should most likely have been accepted. Not much use spending thousands more on legal fees and mostly to find they recover less or pointlessly push people into bankruptcy, when the cost to all of us remaining taxpayers could be very heavy.

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leveraged investment is not an investment at all.

One "Invests" what one has.

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The Ulster Bank and AIB have failed to carry out due diligence. Those employees who who are responsible should be prosecuted.

lol. They probably got a bonus!!

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A spokeswoman for Ulster Bank declined to comment on specific cases, but said it was company policy to pursue borrowers for sums owed. She insisted the bank lent sensibly.
Under the terms of the deal, he did not have to pay interest on the borrowings initially, a concept known as ‘interest roll-up’.

The idea was that the bank would be repaid in full plus interest when the fund sold the development sites it was acquiring at a profit.

But the credit crunch and the property crash dealt the fund a harsh blow, and Friends First has now told investors the fund is worth nothing.

The investor said the interest on his initial loan from Ulster Bank was 3.5 per cent.

So these highly paid (if we don't pay them oodles in bonuses they'll run away to Zug) banksters lent their shareholders and depositors (and then taxpayers) money out at 3.5% on a PIK/roll-up scheme for speculative property development and the bank's spokesman insists they lent 'sensibly'.

Really, this is beyond parody. It's CRIMINAL THEFT.

As a simple comparison using an example I'm familiar with, the Glazers were paying around 16.25% on their 'roll up' PIK loans used to purchase Manchester United and that generates £250m in revenues and £100m in profit p.a. i.e. not a 'speculative' property deal.

How these banksters not all in prison is entirely beyond me.

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The Ulster Bank and AIB have failed to carry out due diligence. Those employees who who are responsible should be prosecuted.

bonuses buy best barristers

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Red Karma I got the same impression when reading the article.. these banks are essentially criminal enterprises.

It is a pyramid scheme where they convinced people to put their house and such as collateral. Ok these 'investors' are not sophisticated, but I would say 95% or higher of investors are not sophisticated.

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Red Karma I got the same impression when reading the article.. these banks are essentially criminal enterprises.

It is a pyramid scheme where they convinced people to put their house and such as collateral. Ok these 'investors' are not sophisticated, but I would say 95% or higher of investors are not sophisticated.

what does "sophisticated" mean in this context?

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So these highly paid (if we don't pay them oodles in bonuses they'll run away to Zug) banksters lent their shareholders and depositors (and then taxpayers) money out at 3.5% on a PIK/roll-up scheme for speculative property development and the bank's spokesman insists they lent 'sensibly'.

Really, this is beyond parody. It's CRIMINAL THEFT.

As a simple comparison using an example I'm familiar with, the Glazers were paying around 16.25% on their 'roll up' PIK loans used to purchase Manchester United and that generates £250m in revenues and £100m in profit p.a. i.e. not a 'speculative' property deal.

How these banksters not all in prison is entirely beyond me.

It's exactly the same thing that went on privately within the Icelandic banks, insider, multi-million speculative loans to various mates of the executive banksters!

Icelanders wouldn't put up with it and have confiscated any assets + jailed those they caught and put out international warrants for arrest on others in hiding!

Edited by erranta

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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