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Vince: No Rescue For Southern Cross

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http://online.wsj.com/article/BT-CO-20110609-709322.html

LONDON (Dow Jones)--U.K. Business Secretary Vince Cable Thursday ruled out a government rescue plan for struggling care home operator Southern Cross Healthcare Group PLC (SCHE.LN), despite unions urging intervention to protect the company's 31,000 elderly residents.
Speaking in the House of Commons, Cable promised that any resident who lost their place in a Southern Cross home would be re-housed. The business secretary also pledged to increase scrutiny of private companies providing public services.

No justice for the perps who brewed this scam then?

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Is there much of a difference between "bailing out" Southern Cross and rehousing all their clients at tax payers expense?

No doubt in the same buildings, with the same staff and all their debts written off now called Couthern Sross?

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Is there much of a difference between "bailing out" Southern Cross and rehousing all their clients at tax payers expense?

No doubt in the same buildings, with the same staff and all their debts written off now called Couthern Sross?

Yep.

But what it means is the market will have to suffer the loss. Admittidly it won't be the people that walked away with the millions in the first place, but perhaps it will teach the market to value leveraged buyouts properly in future.

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<br />Yep.<br /><br />But what it means is the market will have to suffer the loss.  Admittidly it won't be the people that walked away with the millions in the first place, but perhaps it will teach the market to value leveraged buyouts properly in future.<br />

There is no reason why we can't seize Blackstone's UK assets to help get the homes back on track or pay off their mortgages.

Brown did that to iceland under anti-terrorism laws and Blackstone have 'terrorised' 31,000 UK citizens + staff with their previous (Wall street big shot ASHkenazi Jew) greed-filled skullduggery.

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Yep.

But what it means is the market will have to suffer the loss. Admittidly it won't be the people that walked away with the millions in the first place, but perhaps it will teach the market to value leveraged buyouts properly in future.

Who actually lends money in these deals to the hedge funds?

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Who actually lends money in these deals to the hedge funds?

Pension funds mostly.

The fund managers just want quick profits so they can earn their bonuses. It's other peoples money, so in the long term if they lose 100% it doesn't matter, as long as the short term profits are good. Most of the risky investment have been bought/backed by pension funds, no-one is stupid enough to invest in them with their OWN money.

This is why when people encourage default and bankruptcy, I bang my head against the table.

Eventually all these pension fund losses will have to be bailed out by someone, and that will be the young.

The old cannot be allowed to suffer, for a start because they can outvote the young.

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There is no reason why we can't seize Blackstone's UK assets to help get the homes back on track or pay off their mortgages.

Brown did that to iceland under anti-terrorism laws and Blackstone have 'terrorised' 31,000 UK citizens + staff with their previous (Wall street big shot ASHkenazi Jew) greed-filled skullduggery.

A great idea, but there is another problem in the fact Blackstone gets money from pension funds. Irony really is a wonderful thing.

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The business secretary also pledged to increase scrutiny of private companies providing public services.

Yeah right, another of Vincey and his tory pals pledges. Worth about as much as the previous lots pledges.

pledge-multi-surface2.jpg

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If they let it go under, they can buy the assets from the receivers and continue to operate it without anyone being thrown out. All the losses fall on the investors which is as it should be. If they give them money, the investors will simply take it to pay off the debt. Thus it has nothing to do with old people. It is simply a group of foolish investors asking the government to make up their losses. The same investors that took profits every other year.

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If they let it go under, they can buy the assets from the receivers and continue to operate it without anyone being thrown out. All the losses fall on the investors which is as it should be. If they give them money, the investors will simply take it to pay off the debt. Thus it has nothing to do with old people. It is simply a group of foolish investors asking the government to make up their losses. The same investors that took profits every other year.

It's not that simple (unfortunately).

Southern Cross has no assets. All it has is long term leases at rents that it can't afford and, if sold as a going concern, an incoming buyer (even at zero pounds) wouldn't be able to afford them either

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When there's such easy opportunities to scam, sell off assets give it to the directors etc all with the banks and politicians etc conniving and leave everybody else in the lurch there is little or no incentive for the likes of industry and manufacturing and suchlike and the good ship UK will just continue it's current grim journey with destiny.

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<br />A great idea, but there is another problem in the fact Blackstone gets money from pension funds.  Irony really is a wonderful thing.<br />

Blackstone deal with anybody with need for greed thru asset stripping of companies.

It's exactly the same as the hedgefund model of pump & dump. They nip in, strip the wealth then sell off to some other sucker (whilst the accounts still look ok) as fast as they can before the damage is revealed a few years further down the line!

Read their bull-shite excuses http://www.blackstone.com/cps/rde/xchg/bxcom/hs/newsandviews_2011-6-2-1.htm

Whilst Gordon and his Govt had most revelling in his illusional economy, so-called 'investment' companies like Blackstone have been nipping in buying target companies then selling off the assets and forcing the orginal target to lease/rent back it's own properties.

'Investors' also did this to loads of other companies & for example to Debenhams which has been struggling and never been the same since (they now have to lease what they originally owned and can barely afford it).

It was all a ruthless short-termist pisstake, powergame (whilst we were off guard) out of UK companies, the UK population (jobs) by Wall St and City of London Moguls!

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Who actually lends money in these deals to the hedge funds?

Peston did a good piece on it.

Apparently the borrowings of Southern Cross were £50 million.

It is the leverage of the owners of the homes that is causing the problem, as they cannot pay the interest on the money they borrowed to buy the homes.

Yes, good old Vince, let someone take some pain here. The worst of it is, that it is UK lenders, including those owned by the taxpayer that are going to take the hit, another good reason why you dont bail out banks.

FWIW, I think I would put some of the original Private Equity guys up in court over this, try them for fraud, see what the jury makes of it.

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Peston did a good piece on it.

Apparently the borrowings of Southern Cross were £50 million.

It is the leverage of the owners of the homes that is causing the problem, as they cannot pay the interest on the money they borrowed to buy the homes.

Yes, good old Vince, let someone take some pain here. The worst of it is, that it is UK lenders, including those owned by the taxpayer that are going to take the hit, another good reason why you dont bail out banks.

FWIW, I think I would put some of the original Private Equity guys up in court over this, try them for fraud, see what the jury makes of it.

They probably didn't do anything fraudlent.

If they represented their company correctly when they sold it on it is the bank's fault for overvaluing it.

Remember, anyoldrubbish property company doubled in value in two years in 2007. This isn't the only leverage buyout that's gone wrong.

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They probably didn't do anything fraudlent.

If they represented their company correctly when they sold it on it is the bank's fault for overvaluing it.

Remember, anyoldrubbish property company doubled in value in two years in 2007. This isn't the only leverage buyout that's gone wrong.

its hardly fckin suprising when debt leverage carries a tax advantage over skin in the game

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It is the leverage of the owners of the homes that is causing the problem, as they cannot pay the interest on the money they borrowed to buy the homes.

I read last week that the guy who built up the company was an Irish pyschiatric nurse. He saw the opportunity to buy up property in 2001 and used massive borrowing for the expansion. He got out in 2007 with £13m. Or did he? He retained ownership of many of the properties, and in the newspaper interview he opposed the move by Southern Cross to default on its rental debts. Hehe!

I spoke with a carehome owner today, who pointed out that the local authority is bound to deregister a carer when it's insolvent.

How many types of bailout are we talking here?

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  • 284 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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