Saturday, Dec 09, 2006

Are HLC's still necessary?

Motley Fool: Kill this housing rip-off

I spent the final years of the 20th century working for one of the UK's biggest general insurers. Being a giant in many fields, this venerable insurance company was one of the leading underwriters of mortgage indemnity guarantees (MIGs), which lost it hundreds of millions during the Nineties...

Posted by jellycaster @ 11:05 AM (514 views)
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3 Comments

1. paul said...

This is news but not really a surprise.

If you owe a bank money and it goes bankrupt, they sell your debt to someone else - they're allowed to do that.
If the bank owes you money and it goes bankrupt you only get the first 33,000 of your money back - they're allowed to do that too!

Banks have always wanted to have the bun and keep the penny, and the governments always given it to them.

Saturday, December 9, 2006 11:27AM Report Comment
 

2. Retiredbanker said...

It is necessary for a country to have a strong, stable and profitable banking sector in order to ensure financial stability; hence
the support given by the government.

The same goes for our oil companies which are a vital component of our national security, and are granted special concessions
and tax allowances.

Saturday, December 9, 2006 04:14PM Report Comment
 

3. paul said...

strong and stable, yes. Profitable? Yes, but like many things about the banks, its a bit excessive.

Charging customers for your indemnity then chasing them for the sum you've claimed from their insurance?

Wow. I mean wow.

Sunday, December 10, 2006 10:49AM Report Comment
 

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