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Redcellar

Fhfa Suing Banks Over Securitization

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Could be really big this if it goes the distance.

link

Also this one

I've included this link (India one) as it does a good job of summing it up. It also gives a hint that Private investors haven't had a route to take this to court because of lack of information. But guess what will happen if the Government wins? I suspect private investors would also go for the jugular. All those pension and investment funds who believe they were misled when high risk debts were wrapped up in great looking low risk debts and given AAA ratings.

In summary, the US Government is looking to reclaim losses and damages as part of Fannie and Freddie (major buyers of securitization products).

It'll take years of court battles, but in the meantime will mortgage lending be further restricted with a new cautious approach being adopted. Who would trade in securitized mortgages now?

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Could be really big this if it goes the distance.

link

Also this one

I've included this link (India one) as it does a good job of summing it up. It also gives a hint that Private investors haven't had a route to take this to court because of lack of information. But guess what will happen if the Government wins? I suspect private investors would also go for the jugular. All those pension and investment funds who believe they were misled when high risk debts were wrapped up in great looking low risk debts and given AAA ratings.

In summary, the US Government is looking to reclaim losses and damages as part of Fannie and Freddie (major buyers of securitization products).

It'll take years of court battles, but in the meantime will mortgage lending be further restricted with a new cautious approach being adopted. Who would trade in securitized mortgages now?

Looks like RBS (AKA UK Taxpayer) may take a £19bn hit

HSBC on the hook for £4bn & Barclays £3bn.

http://uk.news.yahoo.com/business/

Edited by Kurt Barlow

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Looks like RBS (AKA UK Taxpayer) may take a £19bn hit

HSBC on the hook for £4bn & Barclays £3bn.

http://uk.news.yahoo.com/us-mortgages-rbs-hs

And that might just be the start. What about over here. If our pension funds and investors sued too?

By the way you are wrong. The government assured us that nationalised banks would be refloated and make tax payers a profit. They can't be wrong.

;)

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Bank shares will be interesting on Monday.

Lawyers are going to get richer.

RBS is well stuffed.

Yes that's the shame. Why can't it be simple and not hundreds of millions on a court case. It's going to be you and I who pay. Either because of public owned banks, or simply increased charges and lower interest as banks take it from us all that way.

I really do think this will affect mortgage availability and charges though. Years of uncertainty will kill securitization stone dead, so limited capital for banks to loan. The whole credit bubble relied on it.

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And that might just be the start. What about over here. If our pension funds and investors sued too?

By the way you are wrong. The government assured us that nationalised banks would be refloated and make tax payers a profit. They can't be wrong.

;)

LOL - I got banned from another forum (lefty environmental one) for telling some pillock he was dillusional if he thought the Government would ever see a penny back from the original bailouts. He was convinced the governments buyout of RBS / LLoyds was a smart canny move on our behalf!

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LOL - I got banned from another forum (lefty environmental one) for telling some pillock he was dillusional if he thought the Government would ever see a penny back from the original bailouts. He was convinced the governments buyout of RBS / LLoyds was a smart canny move on our behalf!

Well they went quiet on it didn't they. A few months ago the press lauded it as a great investment. Fools.

I saw that the BBC site had comments, and the highest rated by far, 55 votes, was this gem. Seems sentiment is we shold go after the high paid leaders. After all, they get so much because they are the best in the world aren't they. :blink:

It's true that a financial penalty on a bank will only be paid for by customers and taxpayers and pension funds - that's us x 3. Would be better if they sued the individuals running the banks - that way it hits the people who made the decisions, even the adverse publicity would be great to see. We need strong institutions led with integrity.

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Bank shares will be interesting on Monday.

Lawyers are going to get richer.

RBS is well stuffed.

I do not see the logic of buying/bailing out banks and then letting them pay out in such cases as this.

If the case is that large then the bank will have to be liquidated/nationalised asap as its untenable that the UK public should pay out on such liabilities.

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Wow

“The SFO has been interested in asset-backed securities for some time. People in the City have talked to us about their concerns. We are now looking at litigation and taking action. We are also looking for whistleblowers.”

The SFO is understood to be looking at the possibility of criminal and civil action.

An SFO team is investigating at least seven major asset-backed security transactions that were either put together or handled by London banks.

But will anything ever happen or will it magically disapear?

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I wonder if Sir Richard Branson is quite so interested in buying RBS now?

Was he only ever interested because it matched his initials?

Edited by nmarks

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I wonder if Sir Richard Branson is quite so interested in buying RBS now?

Was he only ever interested because it matched his initials?

LOL, thought the same about anyone buying it. No way anyone will. Even at £1BN which is what it's expected to get. The liabilities are unknown and potentially huge.

Might as well setup his own bank. Sure the setup costs will be high, but at least you know your liabilities.

EDIT: it's not looking good for the nationalised banks now is it. There was some chatter a few weeks ago about would the next collapsed bank be allowed to go to the wall. Glad I'm not with any of them. Can't see the public blindly accepting another bailout, especially with the furore caused by the continuing bonuses.

Edited by Redcellar

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I do not see the logic of buying/bailing out banks and then letting them pay out in such cases as this.

If the case is that large then the bank will have to be liquidated/nationalised asap as its untenable that the UK public should pay out on such liabilities.

If the bank - RBS - is nationalised it ain't going to stop the US Govt going after its money from the UK Govt.

If the bank - RBS - is allowed to go bust it ain't going to stop the US Govt going after its money from the major share-holder - thanks Brown, Darling, King.

Looks like you and I and everyone in the UK is on the hook for 20 or 30 billion of US bad mortgages in RBS alone.

Perhaps now is the time to bail out of the UK?

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If the bank - RBS - is nationalised it ain't going to stop the US Govt going after its money from the UK Govt.

If the bank - RBS - is allowed to go bust it ain't going to stop the US Govt going after its money from the major share-holder - thanks Brown, Darling, King.

Looks like you and I and everyone in the UK is on the hook for 20 or 30 billion of US bad mortgages in RBS alone.

Perhaps now is the time to bail out of the UK?

And the impact on UK lending as a whole? Not going to be pretty is it.

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I wonder if Sir Richard Branson is quite so interested in buying RBS now?

Was he only ever interested because it matched his initials?

I recall Virgin money having a look at Northern Crock, but not RBS.

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If the bank - RBS - is nationalised it ain't going to stop the US Govt going after its money from the UK Govt.

If the bank - RBS - is allowed to go bust it ain't going to stop the US Govt going after its money from the major share-holder - thanks Brown, Darling, King.

Looks like you and I and everyone in the UK is on the hook for 20 or 30 billion of US bad mortgages in RBS alone.

Perhaps now is the time to bail out of the UK?

The law of limited liability means the only monies that can be lost is the taxpayer equity in RBS. Still painful mind.

It is what happens when you put crony crooks in to regulate crooked banks.

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I recall Virgin money having a look at Northern Crock, but not RBS.

Indeed I stand corrected, that was the valuation of Northern Rock. No idea why I thought RBS.

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The law of limited liability means the only monies that can be lost is the taxpayer equity in RBS. Still painful mind.

It is what happens when you put crony crooks in to regulate crooked banks.

Do you truly believe that is going to stop the Yanks, especially Obama if he gets in for anothr 4 years?

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If the bank - RBS - is nationalised it ain't going to stop the US Govt going after its money from the UK Govt.

If the bank - RBS - is allowed to go bust it ain't going to stop the US Govt going after its money from the major share-holder - thanks Brown, Darling, King.

Looks like you and I and everyone in the UK is on the hook for 20 or 30 billion of US bad mortgages in RBS alone.

Perhaps now is the time to bail out of the UK?

Strictly speaking it is not nationalised as the shares are still traded. The UK government is simply the major shareholder. The liability is limited to the value of the shares plus presumably the value of underwriting deposits to the value of £100,000 in the event of liquidation. Anyway I think some commentators are missing the interesting point here. It is not only the banks as institutions that are being sued but also some of their officers. Fred Goodwin ought to be starting to feel a tad nervous now. BTW there are some odd omissions from the list such as Wells Fargo and Wachovia that were also big players in the securitisation game.

Edited by stormymonday_2011

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Do you truly believe that is going to stop the Yanks, especially Obama if he gets in for anothr 4 years?

Its a law case so you can only sue within the terms of the legislation. Shareholders legal liability is the value of their shares, end of story.

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Its a law case so you can only sue within the terms of the legislation. Shareholders legal liability is the value of their shares, end of story.

I think you are seriousl underestimating the American sense of getting everything they want because they are American. Us Brits used to have it also.

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I recall Virgin money having a look at Northern Crock, but not RBS.

That was when banking was still a market, before the NR bailout had poisoned the entire business for everyone (in particular, for a 'clean' prospective newcomer).

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I think you are seriousl underestimating the American sense of getting everything they want because they are American. Us Brits used to have it also.

As if UK Government would allow RBS to go into administration to get out of litigation. As is UK Government would be even allowed such a course of action by its crooked bankster paylords!

There will be some pathetic excuse like its "good for London" or "saving the UK's banking reputation" or some such bollax

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Do you truly believe that is going to stop the Yanks, especially Obama if he gets in for anothr 4 years?

It won't be elected politicians making that kind of decision. Obama's re-election or otherwise will make no difference to it.

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  • 285 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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