interestrateripoff Posted June 21, 2011 Share Posted June 21, 2011 http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8588121/RBS-sued-by-US-regulator-over-mortgage-bonds.html The National Credit Union Administration (NCUA), which regulates credit unions in America, alleges that a division of the UK bank "systematically abandoned" guidelines that should have governed the quality of the mortgages used in the bonds.According to a lawsuit filed on Monday, this caused US Central Corporate Credit Union, a Kansas-based credit union, to misjudge the riskiness of the bonds it was buying. The NCUA eventually put US Central into liquidation in March 2009. The lawsuit, which also targets the companies that issued the original mortgages, is the latest example of US authorities going after alleged wrongdoing in the country's mortgage market in the run up to the financial crisis. ......... Meanwhile, RBS shares fell on Monday as the bank sold hundreds of millions of its own shares to pay bonuses to its staff. RBS shares closed down 4.4pc at 38.51p after the bank sold 356m shares on behalf of employees, mainly investment bankers, who received part of their bonus for 2009 in deferred shares. Looks like the share price may be worth even less soon..... Still it's only the UK taxpayer on the hook for the losses. Quote Link to comment Share on other sites More sharing options...
South Lorne Posted June 21, 2011 Share Posted June 21, 2011 http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8588121/RBS-sued-by-US-regulator-over-mortgage-bonds.html Looks like the share price may be worth even less soon..... Still it's only the UK taxpayer on the hook for the losses. ...Yes...OK...but this is fraud ...and the individual bankers involved should be charged accordingly if charges are brought.... Quote Link to comment Share on other sites More sharing options...
porca misèria Posted June 21, 2011 Share Posted June 21, 2011 ...Yes...OK...but this is fraud ...and the individual bankers involved should be charged accordingly if charges are brought.... But, but, ... Remember the fuss we made over the unfairness of extraditing "the NatWest Three"? If Brown&Co hadn't bailed out bust banks but just let the market work, and only if no buyer was found then compensate savers up to the value of the guarantee then in place, there'd be no taxpayer-backed institution to sue for all this. Quote Link to comment Share on other sites More sharing options...
Patfig Posted June 21, 2011 Share Posted June 21, 2011 But, but, ... Remember the fuss we made over the unfairness of extraditing "the NatWest Three"? If Brown&Co hadn't bailed out bust banks but just let the market work, and only if no buyer was found then compensate savers up to the value of the guarantee then in place, there'd be no taxpayer-backed institution to sue for all this. The Natwest three, are they like the Renault five? Quote Link to comment Share on other sites More sharing options...
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