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Us Banks Hike Agreed Fixed Rates

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So we talk of margin calls but this is something new after clauses in their contracts changed after 9 /11, do we have similar clauses in the UK that could be invoked, this would be seriously disasterous.

Borrowers Find What Citigroup Says Isn't What It Does (Update1)


March 14 (Bloomberg) -- Real estate developer John Wimmer paid Citigroup Global Markets Realty Corp. almost $1 million last year to lock in a 5.6 percent mortgage rate on the refinancing of six commercial properties.

At the November closings, Citigroup, citing plummeting demand for mortgage bonds, boosted the rate to 7.123 percent.

``I was very upset,'' Wimmer said in a phone interview from his office in Hales Corners, Wisconsin. ``We had many proposals to lock the rate with other financial institutions and we picked Citigroup because of their reputation and strength.''

Wimmer sued. So did a developer in Kentucky after Prudential Mortgage Capital Co. invoked the ``material adverse change'' clause in their loan agreement to raise his rate.

Banks have used the clause after calamities such as the terrorist attacks of Sept. 11, 2001, to free themselves from lending obligations. With the spreads between commercial mortgage- backed securities and 10-year U.S. Treasuries at their widest in at least 12 years, banks are applying the concept to avoid lending at money-losing rates, scuttling deals, leaving borrowers at risk and casting doubt on contracts that have already been negotiated.

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  • 293 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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