spyguy Posted February 1, 2019 Share Posted February 1, 2019 22 minutes ago, Ah-so said: https://www.thisismoney.co.uk/money/markets/article-6649901/Metro-admits-truth-loans-error-Regulator-NOT-bank-discovered-accounting-error.html At least the PRA is all doing its job. Sort of. PRA BoE job seems to have been create a load of challanger banks, funded with foreign equity, pour FLS cheap lending in for 5 years, flip 50% of the idiot IO BTL from the walking dead like Nationwide, withdraw cheap funding and see if a smaller, solvent bank comes out at the end. https://ftalphaville.ft.com/2016/02/01/2151409/we-need-to-talk-about-metro-banks-weird-balance-sheet/ Wonder if theyll have a closing song? Quote Link to comment Share on other sites More sharing options...
Will! Posted February 27, 2019 Share Posted February 27, 2019 Bloomberg: Regulators Probe Hill's Metro Bank as Lender Boosts Capital Quote Metro Bank also announced: ... It will ‘‘rebalance lending mix’’ around mortgages and SMEs Metro now doesn’t expect Advanced Internal Rating Based accreditation for residential mortgages before 2021. AIRB can allow a bank to put far less capital behind its mortgage portfolio. Quote Link to comment Share on other sites More sharing options...
Pop321 Posted February 27, 2019 Share Posted February 27, 2019 On 05/06/2017 at 12:56, NuBrit said: Metro Bank see themselves as an intermediary in the market. They do not originate their own loans on the retail side, so it's not surprising that when under pressure to actually use some of their expensive deposits to generate a return that they should go to the likes of private equity to do a deal. Is this right or wrong, well let me ask you a question. Say you're running your own Bank of Darby Ram, you have two choices to generate loans. Either you employ good people directly and create an incentive system in order to have them write good quality, low risk loans for your customers. Alternatively, you try to save a little money and do not bother with your own mortgage staff; instead you allow third parties to book the loans, or you buy bundles of loans from god knows who. I have warned here about the challenger banks. A lot of what they claim to be new paradigm business models are basically just the existing business models with shortcuts taken. Personally, I think it will all end in tears, although the gravy train can keep going for awhile yet. Whilst you are right...and you are absolutely right, I am not sure if asked whether running my own fleet of mortgage advisers and all that encompasses, regulation, compliance teams, supervisors, management structure, product teams, leaflet product teams, marketing, financial promotion sign offs, lawyers, risk teams etc...is worth it. I might be inclined to just take a punt and buy something already up and running. The gamble is whether the loses are more than the cost. You and I may agree is too big a gamble....all I am saying is I can see why some highly paid employees aka directors (paid purely for delivering short term profit) may take the quick option. Bonus...out, boom. Next directorship please. ? Quote Link to comment Share on other sites More sharing options...
spyguy Posted February 27, 2019 Share Posted February 27, 2019 Oh dear. Now ... has the PRa stepped up its auditing? Or was MetroBank just lousy/careless/bent? Im interested as there's a few banks n BS's who's lending might not be all it pretends to be. For instance ... Leeds BS, which AFAICT appears to classifying holiday lets as residential lending. Now in my books, these are commercial loans. Just because LeedsBS is lending money to individuals to buy a house to let out does not make those loans residential. And Leeds BS is doing a *lot* of holiday let loans. In fact, it appears to be the only bank willing to do holiday let loans. tick tock... Quote Link to comment Share on other sites More sharing options...
spyguy Posted February 27, 2019 Share Posted February 27, 2019 http://www.leedsbuildingsociety.co.uk/mortgages/holiday-let-mortgages/ Leeds Building Society is one of only a handful of lenders to offer specially designed mortgages for properties in England, Scotland, and Wales used as holiday homes. These mortgages are for owners of holiday homes who stay in the property themselves or who let out to holidaymakers. Unless otherwise indicated, these products are only available for house purchases or for customers remortgaging from another lender They say that like its good thing, like theyve stumbled on a gold mine... You know, if the other larger, better capitalised banks arent rushing into this market surely you need to be asking yourself - Why? Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 27, 2019 Share Posted February 27, 2019 19 minutes ago, spyguy said: http://www.leedsbuildingsociety.co.uk/mortgages/holiday-let-mortgages/ Leeds Building Society is one of only a handful of lenders to offer specially designed mortgages for properties in England, Scotland, and Wales used as holiday homes. These mortgages are for owners of holiday homes who stay in the property themselves or who let out to holidaymakers. Unless otherwise indicated, these products are only available for house purchases or for customers remortgaging from another lender They say that like its good thing, like theyve stumbled on a gold mine... You know, if the other larger, better capitalised banks arent rushing into this market surely you need to be asking yourself - Why? Why? Because they Leeds is a niche financial institution who's niche is... mortgages. They can't compete with the big boys on economies of scale. So they compete by hitting obscure markets instead. Quote Link to comment Share on other sites More sharing options...
spyguy Posted February 27, 2019 Share Posted February 27, 2019 https://www.ft.com/content/082cb96c-3a85-11e9-b856-5404d3811663 employees miscalculated assets .... false market .... optimistc balance sheet .... sanactions for exex .. fines ... bans ... Quote Link to comment Share on other sites More sharing options...
msi Posted February 27, 2019 Share Posted February 27, 2019 5 hours ago, spyguy said: https://www.ft.com/content/082cb96c-3a85-11e9-b856-5404d3811663 employees miscalculated assets .... false market .... optimistc balance sheet .... sanactions for exex .. fines ... bans ... BBC link https://www.bbc.co.uk/news/business-47387630 Quote Link to comment Share on other sites More sharing options...
NuBrit Posted May 2, 2019 Share Posted May 2, 2019 More bad news. https://news.sky.com/story/metro-bank-blunder-sparked-business-cash-exodus-11708868 Quote Link to comment Share on other sites More sharing options...
Spindler Posted May 2, 2019 Share Posted May 2, 2019 On 2/27/2019 at 12:07 PM, Si1 said: Why? Because they Leeds is a niche financial institution who's niche is... mortgages. They can't compete with the big boys on economies of scale. So they compete by hitting obscure markets instead. want a holiday home ? buy an RV/Campervan Quote Link to comment Share on other sites More sharing options...
simvastatin Posted May 2, 2019 Share Posted May 2, 2019 1 hour ago, NuBrit said: More bad news. https://news.sky.com/story/metro-bank-blunder-sparked-business-cash-exodus-11708868 Makes me wonder if metrobank will survive, should I take my money out, and put it in a good bank like the TSB Quote Link to comment Share on other sites More sharing options...
NoGo Posted May 2, 2019 Share Posted May 2, 2019 I think its a bit of a nothing story. Yes they messed up and share price dropped in March, but it has stayed pretty static from then. Its not dropped much today, now the story has broke, and Lloyds reported less than expected results today also. I have a bank account with Metro, and I am not worried and in any case you would be protected by the FSA. Quote Link to comment Share on other sites More sharing options...
spyguy Posted May 2, 2019 Share Posted May 2, 2019 (edited) 2 hours ago, NoGo said: I think its a bit of a nothing story. Yes they messed up and share price dropped in March, but it has stayed pretty static from then. Its not dropped much today, now the story has broke, and Lloyds reported less than expected results today also. I have a bank account with Metro, and I am not worried and in any case you would be protected by the FSA. ? Metro bank is 80% down over 12 months. Waaaay below its float price. As an investment, compnay, whatever, its a dog. Edited May 2, 2019 by spyguy Quote Link to comment Share on other sites More sharing options...
NoGo Posted May 2, 2019 Share Posted May 2, 2019 15 minutes ago, spyguy said: As an investment, compnay, whatever, its a dog. Ok I agree it has not been a good investment for share holders. But what I meant, was in reply to Prozacs comment about should he remove his money from the bank! I think we are a long way from that and I do think the media have talked up what happened today. The bad news really came out in January when they owned up to the error, and that was when the SP really dropped. Today is just the repercussions of it. I do not own shares in Metro. Quote Link to comment Share on other sites More sharing options...
winkie Posted May 2, 2019 Share Posted May 2, 2019 On 03/06/2017 at 12:19, spyguy said: They have *expensive* deposits. Expensive deposits = expensive debt. ? Quote Link to comment Share on other sites More sharing options...
bear.getting.old Posted May 2, 2019 Share Posted May 2, 2019 (edited) On 03/06/2017 at 09:58, regprentice said: Cerebrus will have bought the btl at a significant discount and presumably flipped to metro at a profit. Metro probably think they have paid under the odds compared to the 'headline' price and accept that they needed a 'specialist' like cerebrus to package the loans. Metro might have paid, say, 80p in the pound for them...so feel they have some 'headroom' to protect them from a shock. Based on previous experience cerebrus could be paying as little as 5-15% of the face outstanding value fo the mortgage. why metro want these loans im not sure. Presumably they feel the long term cash flows are worth more than the value they have paid. I've also heard about banks buying loans (in particular credit card business) to meet their risk weighted assets requirements after icb ring fencing rules have been applied - but i would be very surprised if commercial btl lending fell into this criteria. A bank should have more sense about investing. It would have made more sense to invest in bonds or shares. Their decision shows their incompetence in such matters, yes Metro bank to be bailed out 5 or so years down the line when the chickens come home to roost. Edited May 2, 2019 by bear.getting.old Quote Link to comment Share on other sites More sharing options...
rantnrave Posted July 25, 2019 Share Posted July 25, 2019 Metro Bank shares plunge 16% BBCCopyright: BBC Metro Bank's shares have plunged following its results, which were published after the stock market closed on Wednesday. It said customers withdrew £2bn of deposits over the six months to June and that half year pre-tax profits fell to £3.4m from £20.8m a year earlier. It floated at £20 a share in 2016 and rallied to levels around £40 but is now trading below 400p. Back in May the company raised £375m from a share placing to bolster its finances at 500p. Quote Link to comment Share on other sites More sharing options...
winkie Posted July 25, 2019 Share Posted July 25, 2019 Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted July 25, 2019 Share Posted July 25, 2019 10 hours ago, rantnrave said: Metro Bank shares plunge 16% BBCCopyright: BBC Metro Bank's shares have plunged following its results, which were published after the stock market closed on Wednesday. It said customers withdrew £2bn of deposits over the six months to June and that half year pre-tax profits fell to £3.4m from £20.8m a year earlier. It floated at £20 a share in 2016 and rallied to levels around £40 but is now trading below 400p. Back in May the company raised £375m from a share placing to bolster its finances at 500p. 385.00GBX91.40 (19.19%) How long till these chancer banks go pop? Quote Link to comment Share on other sites More sharing options...
simvastatin Posted July 25, 2019 Share Posted July 25, 2019 2 hours ago, TheCountOfNowhere said: 385.00GBX91.40 (19.19%) How long till these chancer banks go pop? I will to start to worry when the share price goes under £1 Quote Link to comment Share on other sites More sharing options...
spyguy Posted July 26, 2019 Share Posted July 26, 2019 8 hours ago, prozac said: I will to start to worry when the share price goes under £1 2 weeks then ... I dont know. Bit of mess. Experience shosthat when any financial company goes wrong, it goes very wrong. Quote Link to comment Share on other sites More sharing options...
simvastatin Posted July 26, 2019 Share Posted July 26, 2019 17 minutes ago, spyguy said: 2 weeks then ... I dont know. Bit of mess. Experience shosthat when any financial company goes wrong, it goes very wrong. 9th of August then in your opinion. I bet you a beer next time you are in Camden Quote Link to comment Share on other sites More sharing options...
TopBanana101 Posted July 26, 2019 Share Posted July 26, 2019 12 hours ago, TheCountOfNowhere said: 385.00GBX91.40 (19.19%) How long till these chancer banks go pop? What happens when they do go pop and they are sitting on £600m of QE inflated funny-money? Quote Link to comment Share on other sites More sharing options...
spyguy Posted July 26, 2019 Share Posted July 26, 2019 1 hour ago, TopBanana101 said: What happens when they do go pop and they are sitting on £600m of QE inflated funny-money? Any money not converted to mortgages goes back to BoE. Any debt products i.e. mortgages are sold to another lender. MB are not that important. Quote Link to comment Share on other sites More sharing options...
TopBanana101 Posted July 26, 2019 Share Posted July 26, 2019 2 hours ago, spyguy said: Any debt products i.e. mortgages are sold to another lender. At what price if these are high LTV in a falling price scenario. Back to UKAR playing the dirty bank? How more times will the 'have-not' taxpayers continue to bail-out the 'haves' who get favorable tax treatment? 2 hours ago, spyguy said: MB are not that important. Agreed. I think all of the loose-lending has ended up where needed to be manageable. Of all the larger landlords I know, none have diversified into other sectors to hedge as they 'understand' property. I don't see a fire sale scenario in other markets to prop up LTV margin calls on BTL mortgages. This bubble seems pretty contained to me, if that is by design or just a perfect storm I don't know, but where the ownership of the property ends up rather that the mortgages interests me. Quote Link to comment Share on other sites More sharing options...
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