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Frank8

Revealed The Dramatic Us Charges Against Uk Banks

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Barclays, Royal Bank of Scotland and HSBC routinely breached their own mortgage-lending rules and bullied surveyors into wildly inflating valuations of American properties in the run up to the credit crunch, it has been claimed.

Analysis of the small print in the multi-billion-dollar lawsuits just filed against the three by the US government also reveals that the British firms were alleged to be so desperate to ratchet up fees and bonuses before the collapse of the sub-prime mortgage boom that their employees made constant false statements to their own clients.

Edited by Frank8

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Nice work, getting that www link into the title.

I'm afraid that was an accident. :blink:

You replied before I managed to edit it out and give the link in a subsequent post above.

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So, one must assume that if they were allegely doing it in the US then what about the UK?

This could get very interesting.

Did our banks issue mortgage bonds backed by UK homes in any quantity?

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Did our banks issue mortgage bonds backed by UK homes in any quantity?

No idea but, in the global merry go around of mortgage derivatives, one assumes that UK mortgages were packaged up and sold on? No?

I was actually referring to the allegation that some UK banks bullied surveyors into inflating valuations - if they did it, allegedly, in the US then what was going on here?

Remember, only a few weeks ago a surveyor went to jail for some serious jail time for over-valuing the price of properties in London for a seller who has since disappeared.

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So who is going after the ratings agencies who no doubt did thorough due diligence before classifying all of this crap AAA ?

Or Fannie and Freddie who obviously did due diligence before underwriting it all?

Or the mortgage applicants who lied on their application forms?

Or is the simple truth that we were all complicit because the whole western world was completely enamoured with the idea of free money from property to the extent that even central banks didn't see it brewing right in front of their eyes until six months after the bubble had already burst.

The banks are as culpable as the next man.. but the real honest true is that we all thought we were getting something for nothing. Why worry if you can pay it back when the asset value is always ahead of the curve?

Let the market take its course.. that will punish the culpable. But of course we won't because we think it's all we have left to cling to.

Human psychology is depressingly (and predictably) irrational.

Edited by libspero

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If it is indeed proved that they were bullying surveyors to inflate valuations then things could get very messy.

In the US you could see a class action from all the people who took out mortgages at these inflated property values, the least they would be looking for is for the over estimation to wiped of the mortgage. More likely they will go after having the whole mortgage wiped out as the bank has committed fraud to enable it to obtain more of your money by deception. There could also follow criminal proceedings where the banks could lose massive amounts of money as this would be deemed proceeds of a crime.

It would be great if it came to the UK, the government would have to use quantitative easing to reduce all mortgages as the actions of even one bank inflating property valuations affects the whole market. Surveyors look at valuations for other properties on a like for like basis.

Of course it won't happen as the bankers in charge won't allow it.

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Of course it won't happen as the bankers in charge won't allow it.

There is a faint chance with Obama needing something to be reelected and the banks seemingly not supporting his campaign this time?

Living in hope...

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So, one must assume that if they were allegely doing it in the US then what about the UK?

This could get very interesting.

Don't hold your breath. That's just not the way we do things here. May just get to see a couple of junior managers in the dock, but only if they promise not to blow the gaff in exchange for a short sentence in a seaside guest house and a handsome 'redundancy' package and/or the old job back - see News International.

Everyone deserves a second chance - D Cameron

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If it is indeed proved that they were bullying surveyors to inflate valuations then things could get very messy.

In the US you could see a class action from all the people who took out mortgages at these inflated property values, the least they would be looking for is for the over estimation to wiped of the mortgage. More likely they will go after having the whole mortgage wiped out as the bank has committed fraud to enable it to obtain more of your money by deception. There could also follow criminal proceedings where the banks could lose massive amounts of money as this would be deemed proceeds of a crime.

It would be great if it came to the UK, the government would have to use quantitative easing to reduce all mortgages as the actions of even one bank inflating property valuations affects the whole market. Surveyors look at valuations for other properties on a like for like basis.

Of course it won't happen as the bankers in charge won't allow it.

I was posed many pieces form a US appraiser forum detailing the the sort of activity going on in the US market. Honest priasers were being put out of work by number hitters, the loan brokers were effectively dictating pricing and acting as a conduit for the banks, newcomers were brought in to do the banks' bidding. The system looked utterly corrupt and those inside it were themselves writing to the organisations that were overseeing / regulating them and also to congress. All of their concerns were ignroed and hushed up, the evidence ignored. Complicity for this mess runs right through the whole system, right up to the feed and govt, they had enough evidence to know exactly what was going on.

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There is a faint chance with Obama needing something to be reelected and the banks seemingly not supporting his campaign this time?

Living in hope...

Hope? If this becomes an issue in US domestic politics, then it will become a contest between various groups to see how much they can get out of foriegn companies (ask BP on this subject). Domestic big companies in the US are well protected by their bribes campaign contributions, lobbying, and the effect on local voters. Foriegn companies are, on the other hand, fair game..

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  • 333 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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