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spyguy

No Sh.t Sherlock - Lloyds Has Largest Exposure Risky Loans.

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http://www.ft.com/cms/s/0/16313334-a033-11e0-a115-00144feabdc0.html#axzz1QGThmcjc

Highlights for non-subs:

'exposure to the riskiest kind of mortgages is more than double that of any of its top five rivals in what is potentially a ticking time bomb for Britain’s largest high-street lender.'

'loans representing more than a quarter of Lloyds’ mortgage book are worth at least 90 per cent of the property value they are secured against.'

Remember this is the Lloyds group not just Lloyds-TSB. The groups includes Halifax, Royal Bank of Scotland and lots of other odds+sods from the mutual market.

Leverage and banking are a bitch when the market reverses.

Not sure I want my free shares. Maybe a couple of rolls of Andrex will be more suitable.

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And for RBS they had Natwest's former subsidiary Ulster Bank to thank for their enormous exposure in Ireland.

The shocking thing about Lloyds though is not that their exposure is double that of others above 90% ltv (and I assume they are simply talking uk residential here), but that their market share of the uk mortgage market at about 30% is double that of its nearest rival.

So - all in all, their share of the 90% plus market must be in the order of about a half !! And that this represents some 8% of the entire uk mortgage market.

And that is all ours.

EDIT: Those numbers are wrong.

at the end of the day theres no reward without risk, the greater the risk the greater the reward potential, alot of scaremongering on here but by the time its played out i wouldnt be suprised to see 90% of UK taxpayers sitting in their personal 16 berth superyachts in the Carribean supping champagne and cocktails on the back of this chuckling about the how Gordon pulled a blinder and bought them a piece of the best investment since Apple

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This just got some coverage on R4 today programme 0840-0850. The interviewee firmly pointed the figure at HBoS part of Lloyds.

The discussion was about Lloyds group in general and what it needed to do:

1) cost reduction - "many more jobs to go" apparently

2) needs to decrease loans to deposit ratio, so "needs to offer more competitive savings rates and reduce lending"

"Another rug pulled from under prospective mortgage borrowers" was the commentators take but isn't the easiest thing to just reduce LTVs (v sensible especially at HBoS) and get the surveyors valuation to be as low as possible so they can lend less but try to hold the customer numbers up as much as possible. I suspect we are seeing some of the is already in the the monthly Halifax data which has diverged from Nationwide a bit lately.

This might do good things to the Halifax numbers and act as a continuous source of bearish housing market news.

Edited by koala_bear

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at the end of the day theres no reward without risk, the greater the risk the greater the reward potential, alot of scaremongering on here but by the time its played out i wouldnt be suprised to see 90% of UK taxpayers sitting in their personal 16 berth superyachts in the Carribean supping champagne and cocktails on the back of this chuckling about the how Gordon pulled a blinder and bought them a piece of the best investment since Apple

Or, more realistically, retiring to a lovely old farmhouse in the south of France/villa in Spain/etc...

Yes, they've pulled a blinder. For now!

Unfortunately, all the (recent) expats that I've met in France have been retiring boomers, and their fate is tied to the ability of the remaining UK workforce to service the crushing weight of their pensions.

Which, IMO, is not going to happen :ph34r:

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And still no enquiry in to the Lloyds takeover of HBOS, and no charges pending or even as much as a preliminary investigation into false accounting and systemic forwarding of liar loans. And anyone who cares to look knows all this was going on.

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It's OK the taxpayer is here to pick up any major losses, cheque book at the ready.

It's OK the taxpayer is savers are here to pick up any major losses, cheque book printer at the ready.

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Bank of Sctoland also distinguished itself in lending insanely to the leisure industry.A surveyor friend often has work tidying up their mess and he assures me that they lent money on hotels that would have struggled to break even with 100% RevPAR.

The day tehy convinced Eric to take on HBOS was the day when they metaphorically took a baseball bat to the black horse's knees.

I am sure that the whole of the HBOS loan book was like this. All only possible due to fraudulent accounting of the value of those loans.

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I am sure that the whole of the HBOS loan book was like this. All only possible due to fraudulent accounting of the value of those loans.

No appetite to mark to market right now then!

This is the real key to problems across the whole banking sector in the Western hemisphere - what is the current value of the assets the banks have on their balance sheets compared to the stated value on those balance sheets?

Insolvency all round anyone?

:ph34r:

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:D:D:D Excellent.

Bible >>> "Hot, Cold, lukewarm!"

Masons G.A. is any god that applies to your own belief all coming together under temple roof.

Therefore the 'con' of Masonry applying to multiple religions/type of god allowed in Temple = 'lukewarm' :)

Your top Masons are at least full-on Satanists!

Edited by erranta

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'Lukewarm' did a bit of Porridge (Scottish mason symbolism)

O.Fr. poree "leek soup"

BiGGins :unsure:

Edited by erranta

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No appetite to mark to market right now then!

This is the real key to problems across the whole banking sector in the Western hemisphere - what is the current value of the assets the banks have on their balance sheets compared to the stated value on those balance sheets?

Insolvency all round anyone?

:ph34r:

This is where I disagree with Eric Pebble. False accounting at a bank is far more serious than liar loans, though heaven knows, liar loans are serious enough.

When you falsely account you can rob the bank, which means its depositors, shareholders and bondholders, of its true wealth. The bonus is the means by which the illicit gains from this fraud is conveyed to the crooks, which is why everyone is so angry about the banker bonus, aka the proceeds of crime.

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http://www.ft.com/cms/s/0/16313334-a033-11e0-a115-00144feabdc0.html#axzz1QGThmcjc

Highlights for non-subs:

'exposure to the riskiest kind of mortgages is more than double that of any of its top five rivals in what is potentially a ticking time bomb for Britain’s largest high-street lender.'

'loans representing more than a quarter of Lloyds’ mortgage book are worth at least 90 per cent of the property value they are secured against.'

Remember this is the Lloyds group not just Lloyds-TSB. The groups includes Halifax, Royal Bank of Scotland and lots of other odds+sods from the mutual market.

Leverage and banking are a bitch when the market reverses.

Not sure I want my free shares. Maybe a couple of rolls of Andrex will be more suitable.

Yeah, it's no surprise when you consider that the Lloyds Banking Group consists of:

Bank of Scotland

Birmingham Midshires

Cheltenham & Gloucester

Halifax

Intelligent Finance

Lloyds TSB

Lloyds TSB Scotland

Scottish Widows Bank

St James's Place Bank

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Lloyds are bound to have a dodgy loan book because Labour forced them to lend.

http://www.bbc.co.uk/news/business-12044445

Even now the coalition are threatening to tax them more if they don't lend. The bonus trough is open if they do lend.

http://www.guardian.co.uk/business/2011/feb/09/bank-bonus-project-merlin-deal

Mortgages switched from repayment to interest only.

Mortgages extended past retirement age

Lloyds are taking stakes in firms like HMV instead of loan payments.

http://news.sky.com/skynews/Home/Business/British-Taxpayers-To-Become-Shareholders-In-HMV-As-Part-Of-Rescue-Package-For-Ailing-Retail-Chain/Article/201106116006972?lpos=Business_First_Home_Article_Teaser_Region_0&lid=ARTICLE_16006972_British_Taxpayers_To_Become_Shareholders_In_HMV_As_Part_Of_Rescue_Package_For_Ailing_Retail_Chain

THe HMV bosses have been given two years to "turn the firm around"

HMV Executive Directors

Simon Fox 2010 £874,000 2009 £579,000 +51%

Neil Bright 2010 £559,000 2009 £349,000 +60%

Gerry Johnson 2010 £494,000 2009 £312,000 +58%

Non-Executive Director

Robert Swannell 2010 £200,000 2009 £50,000 +300%

http://www.hmvgroup.com/investors/financial-reports/reports-results/~/media/Files/H/HMV-Group/Annual%20Reports/hmv_annual-report-2010.pdf

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  • 276 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% +
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      • Even
      • up 2.5%
      • up 5%



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