Friday, October 13, 2006

Minister rejects banks’ debt demand

Minister rejects banks’ debt demand

Government in having spine shocker?

High-street banks’ demands for tougher controls on companies that help consumers offload bad debt have been rebuffed by the government, which on Thursday said lenders had only themselves to blame for the rise in personal insolvency agreements.

Posted by pricedout.org.uk @ 12:06 AM (541 views)
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4 thoughts on “Minister rejects banks’ debt demand

  • I hate to say it, but the government has a point. The banks are entirely to blame and cannot pass off responsibility to others. I predict it won’t be long before mortgage mis-selling scandals start to surface. i.e. “because you lent me 5x my income I assumed that I could afford it” which will probably hold sway in some quarters. Hope the banks have made huge provision for bad debt, because the figures suggest 10% of debt might be at risk, which equates to nearly £130 billion. Might be time to move your money to a safer haven than the more lax lenders.

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  • Bless em. Poor banks. Can’t helping thinking they’d have been screaming blue murder if the government had tried to FORCE them to lend responsibly. But without such restrictions they’ve only gone and made a mess of things.

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  • C'mon Correction says:

    It has surprised me that the banks in this country are still lending so freely, if anything more freely than a few years ago. Much comment was made on this site 1-2 years ago about how banks will start to tighten up and thus having it’s own effect on lending multiples and house prices – but nothing has changed ?

    The central banks are tightening around the world, bankcrupts/IVA’s etc shooting skyward, bad-debt provisions are rocketing, but still record levels each month are still being lent – can anyone explain this? Is it to do with printing more money and supply of money, still lots of cheap money around?

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  • I Think it’s about time banks should face the consequences of their own greed.
    Let’s not forget that the enormus bonuses distributed in recent years come mostly from high volumes of irresponsible lending. Bankers have been concentrating all of their efforts in this market, forgetting completely more traditional banking activities such as Funds Management, as these do not provide the same returns, with the consequence of dismal performances for Endowments and Pension.

    I sincerely hope that the banks do suffer in the next few years, as Bonuses and Forecasted Bonuses are the main reason why City prices ( and consequently countywide ones) are still rising.

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