Jump to content
House Price Crash Forum
tennaval

Former Fsa Chairman In Plot To Shake Mortgage Market

Recommended Posts

excerpts from article in Sunday Times biz section :

"Sir callum mccarthy, the former chairman FSA 2003 -2008 is working onplans for a revolutionary mortgage business that he caims could kickstart the British housing market."

(So having failed to do anything about the credit bubble inflating while at the FSA he's now trying to reinflate it further )

"The complex scheme backed by the controversial american privaty equity firm JC Flowers....would see savers frustrated by low interest rates bankroll first time buyers........"

J Flowers describes himself as a "low life grave dancer", and lost control of banks in germany and japan during the credit crunch."

"Castle Trust would offer homebuyers a 20% deposit in exchange for 40% of any profits made on eventual on the sale."

Mc Carthy has assembled a heavy weight board including former cab minister John Gummer now Lord Debden .....Chairman of the association of IFAS and Dame HUtton, a non executive director of the National consumer council."

all dressed up in very altruistic language of course because it will help poor first time buyers etc etc

Edited by tennaval

Share this post


Link to post
Share on other sites

excerpts from article in Sunday Times biz section :

"Castle Trust would offer homebuyers a 20% deposit in exchange for 40% of any profits made on eventual on the sale."

all dressed up in very altruistic language of course because it will help poor first time buyers etc etc

Although presumably they won't shoulder 40% of any losses made on the eventual sale :blink:

Share this post


Link to post
Share on other sites

It sounds innovative.

An ex-chairman of a regulator that failed to regulate mortgages, proposing a "controversial" private equity firm persuade saver's to gamble their money on people buying something they have no experience of ever buying before.

What could go wrong?

Share this post


Link to post
Share on other sites

Although presumably they won't shoulder 40% of any losses made on the eventual sale :blink:

In fairness the article does say "they would share in any losses if prices fall."

Edited by tennaval

Share this post


Link to post
Share on other sites

In fairness the article does say "they would share in any losses if prices fall."

Then, subject to details, i think that sounds like an excellent proposition for the homebuyer. Reduce your mortgage interest in return for letting someone else speculate on the property market with your property? Why not.

Share this post


Link to post
Share on other sites

Easy credit is the only thing that will get it going again and there's a printing press ready to go for just that.

Print Merv, you know you want to...

Share this post


Link to post
Share on other sites

Sounds like effectively Flowers is buying a call option (FTB is selling him a call option) on the nominal value for c20% of valuation. Doesn't say anything about the covenants/restrictions etc so difficult to tell if it's a simple financing scheme or a shared ownership scheme but it would appear Flowers believes the long term upside in nominal values here makes this worthwhile. Ofc he may just be laying off the risk elsewhere such that he's protected from future nominal falls anyway.

Tory VI Gummer pushing it I see. :rolleyes:

Share this post


Link to post
Share on other sites

Easy credit, all we need is easy credit.

Listen to the lyrics, the songwriter was well on the ball with this one and it's years old too...

Awful song, but I see the point.

Wasn't little Gummer banging on about the mortgage market earlier in the week?

A lazy google shows he's a pan-European climate change tax freak as well.

Share this post


Link to post
Share on other sites

If it were such a good idea, I'm sure the lenders themselves would do it.

We'll get to the point soon when the lender lends someone the money to buy a house and the lender gets all the uplift in valuation. Doesn't really work does it.

The mainstream lenders are currently constrained by capital requirements and the need to deleverage though. Flowers perhaps isn't. Someone has to be the 'early money' benefitting from the mainstream piling in later. For the time being we appear to be disintermediating the banks whilst they recapitalise so it perhaps isn't a surprise that other parties are coming in to fill the void. Should be a pleasing development for 'freemarketeers'.

Share this post


Link to post
Share on other sites

"The complex scheme backed by the controversial american privaty equity firm JC Flowers....would see savers frustrated by low interest rates bankroll first time buyers........"

Isn't it a 20 -25 year bond then? Can't see how savers will like it. There are better bonds out there for that long period.

Locking up your money for that long isn't going to be snapped up by the masses at such a crappy rate. After tax not worth the risk.

If it's just a normal bank deposit thing then it's not new at all. Banks take savers money and loan it out all the time. Cheapest form of raising money.

I don't get it?

Edit:corrected spelling

Edited by Redcellar

Share this post


Link to post
Share on other sites

That **** oversaw the regulation of plenty of sub-prime loans in his time so he's probably the most experienced person to return us as quickly as possible to the depths of dodgy unsustainable lending practices. I'm surprised they're suggesting mortgages at all.. they might as well cut straight to 150% loans.. new buyers are gonna need a kitchen and new car after all. How dare they deny them the right :rolleyes:

Share this post


Link to post
Share on other sites

It sounds innovative.

An ex-chairman of a regulator that failed to regulate mortgages, proposing a "controversial" private equity firm persuade saver's to gamble their money on people buying something they have no experience of ever buying before.

What could go wrong?

Zopa meets shared appreciation mortgages (SAMS).

First time buyers would have to remain in that home as when they sell they will be unlikely to bridge the "rungs" after paying off the mortgage......

Share this post


Link to post
Share on other sites

Callum McCarthy and John Selwyn Gummer can kiss my **** :angry:. I still cannot believe that gummer said:

He told the audience: “Home ownership is the basis of freedom, people who do not own their own home do not have

independence.”

that's right .... mortgage slaves have all the freedom in the World, you complete fool!

Gummer claimed people who dealt with him throughout his time in parliament could be much tougher with him if they

owned their own home

That's right .... there is nothing wrong with a two-tier democracy .... no wonder this country is in such a bloody mess! You don't own something until you have paid for it.

Share this post


Link to post
Share on other sites

excerpts from article in Sunday Times biz section :

"Castle Trust would offer homebuyers a 20% deposit in exchange for 40% of any profits made on eventual on the sale."

Mc Carthy has assembled a heavy weight board including former cab minister John Gummer now Lord Debden .....Chairman of the association of IFAS and Dame HUtton, a non executive director of the National consumer council."[/b][/i]

all dressed up in very altruistic language of course because it will help poor first time buyers etc etc

...sounds like an inverted pyramid scheme....this guy is just an opportunist who reigned during the years of "funny money" and gave it his blessing ...why anybody would listen to this cowboy scheme unless they were off their heads baffles me.... :rolleyes:

Share this post


Link to post
Share on other sites

Hmm, JC Flowers got lucky once and won big - japanese banks

He's been a serial disaster and money hole since. FFS he was going to buy B+B.

A serial exponent of if compnay X is now worth half the price it was 2 eyars ago than it must be cheap.

He cannot differentiate between under valued companies are bust companies/falling knives.

As far as input/value from the anyone high up in the FSA. God help you - thats the head of a useless, jobsworth public sector organisation.

Share this post


Link to post
Share on other sites

Hmm, JC Flowers got lucky once and won big - japanese banks

He's been a serial disaster and money hole since. FFS he was going to buy B+B.

A serial exponent of if compnay X is now worth half the price it was 2 eyars ago than it must be cheap.

He cannot differentiate between under valued companies are bust companies/falling knives.

As far as input/value from the anyone high up in the FSA. God help you - thats the head of a useless, jobsworth public sector organisation.

...agreed ...time these people are investigated....Coalition needs some super hits... :rolleyes:

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.