Thursday, July 17, 2008

Link to Independent Article

FSA is accused of maladministration over collapse of Equitable Li

Ombudsman reverses decision of five years ago and calls for compensation for insurer's victims By James Daley, Personal Finance Editor The Financial Services Authority will be dealt yet another hefty blow to its credibility today, as the Parliamentary Ombudsman, Ann Abraham, reverses her decision of five years ago and accuses it of maladministration for its role in the collapse of Equit-able Life eight years ago. The FSA is one of four institutions – along with the Department of Trade & Industry (DTI), Government Actuary Department (GAD) and HM Treasury – which are accused by Ms Abraham of presiding over a "decade of regulatory failure", which culminated in the insurer's collapse in December 2000. Go careful this time nooneo

Posted by malct @ 03:07 PM (1185 views)
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18 thoughts on “Link to Independent Article

  • I don’t understand what happened to this article earlier …

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  • planning4acrash says:

    Whoop, whoop!!

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  • Anyway. Maladministration is a serious charge – it means that they weren’t simply negligent, or remiss, they actually did not follow correct procedure deliberately.

    That’s fuel for conspiracy theorists.

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  • Does that mean I get any of my pension back?

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  • I’m almost obsessed with the self-certification market. How on earth could it be anything other than a corrupt and fraudulant practise. If you have time watch this video here it is:

    http://video.google.co.uk/videoplay?docid=-8482518243122067675&hl=en-GB (copy into your address bar)

    and this is the beebs’s take on it’s own programme

    http://news.bbc.co.uk/1/hi/business/3222053.stm

    This programme went out on 29th October 2003 – er yes that’s nearly 5 years ago. Since then we have had 5 years of massive property price rises, with more and more people making fraudulant claims for mortgages – This is MASSIVE for everyone who got away with it (ie: their fruadulant mortgages have ceased or changed) there are 3 or 4 mortgages that are now getting into trouble in the market. Some figures put the self-cert market at 10%, thats a lot of cash. Some banks (NR, B&B, A&L are heavily into this fruadulant practise and still no-one appears to bat an eyelid! Incredible.

    And where exactly where the FSA, surely they saw this programme? Did the government react at all, err, not a peep from “the best chancellor since WW2”. Ther’s gonne be tears before bedtime on this one. Remember people, all this fraud CAN be checked retrospectively, there should be a direct paper trail back to the borrowers/brokers/lender who let this pyramid scheme go on and on.

    Anyone nw want to buy a “attrractive 2 bedroom apartment in sunny leeds” off-plan now? It’s absolutely incredible that the directors of this farsical body got massive pay rises last year (see pauls post above).

    No more boom and bust! How on earth was this disasor not going to happen?

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  • No more boom and bust – how those words are going to haunt him! History will probably remember him as a Neville Chamberlain figure – I have in my hand a piece of paper…peace for our time.

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  • afrobaggie ” Neville Chamberlain figure – I have in my hand a piece of paper…peace for our time.”

    Neville ChamberPot was always on a loser. He Had Montague Norman at the helm of the Bank of England.

    The BoE was financing Hitler right up to and during WW11. Check Hansard if you can.

    And of course there was that little matter of Chech gold that came back to London as bombs!

    We don’t have that problem now, right?

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  • malct @7 not to mention the Nazi sympathisers in the aristocracy.

    I have to say that after my posting I decided to have a little investigation into Mr Chamberlain, amazing how much I have learnt following on from the discussions on this website. I feel like Homer Simpson where every new bit of information erases something that I previously knew.

    Like house prices always go up 🙂

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  • 8. afrobaggie said…
    “malct @7 not to mention the Nazi sympathisers in the aristocracy. ”

    hey steady on mate, I’m trying to keep my license !

    speeding off like that can mean an instant ban.

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  • Good point Malct, I will be add the word ‘allegedly’ seems to work on “Have I got news for you”

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  • The FSA is going to have to answer an awful lot of questions with regards to all the crock banks and so on, that will be exposed during the recession. How on earth have they got away with this shinnanigins for sol long. The guv’mint are just hiding behind this floundering organisation. I seriously hope that all those who have helped ramp this mess up, the lenders, the fruadulant brokers and borrowwers, will get some sort of punishment, but I suppose thats just aking too much.

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  • Where does the FSA stand on 7x salary mortgages and self certs?

    Will we see mortgage victims seeking compensayshun?

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  • enuii @ 12.

    “Will we see mortgage victims seeking compensayshun?”

    Are you serious? These people are complicit in carrying out fruad. They lied about their income, they all knew it was illegal, surely. They ain’t victims, they are greedy and sad.

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  • That would be like a drug addict suing his dealer surely?

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  • If a 17 year old goes into a shop to buy some booze ‘n’ fags it’s not the 17 year old who gets it in the neck from the law its the shop assistant who sold it to them!

    In todays blame culture then it is not entirely unfeasible that someone someday may be able to sue their mortgage lender for lending them the money in the first place. especially if the FSA and the glubberment hae been turning a blind eye to widespread lax/fraudulent lending practices.

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  • enuii
    @ 15.

    None of this takes away from the fact that if you lie about your income you are guilty of gaining/obtaining money by deception, plain and simple. Your analogy above does place the shop assistance at fault. But self certification is just that, you are certifyinying (and signing) that you earn £x . If it turns out you lied to obtain the loan, you may be able to implicate the broker (as almost all self certification is obtained through one) but it is the borrower who has broken the law by attempting to obtain finance by testifying to false income levels to obtain the mortgage. The law differentiates between the obvious law breaker and the mortgage companies, who it seems, have no obligation to actually check the income of the potential borrower.

    I genuinly think that there will be investigations into these loans when people start looking into why the House Price Crash has happened. The US is now actively tracking down all it’s own sub-prime borrowers/brokers and even lenders, if it can be proved that deception was used to get mortgages and I reckon they are going to look for scapegoats when the smoke clears.

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  • “In todays blame culture then it is not entirely unfeasible that someone someday may be able to sue their mortgage lender”

    Personally enuii, I reckon Gordon Brown has more chance of remaining prime minister after the next general election (let alone after Glasgow east next week) than anyone ever has of successfuly suing a bank or building society if the lied to obtain the credit or any other reason for that matter. People made noises about doing that in the 80s/90s crash but that was just wishful thinking/hot air.

    Some people still think if they hand their keys back to the mortgage lender they can get out of the deal – get real people, if you signed on the dotted line, that’s it really!

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  • Why should the taxpayer come to everyone rescue’s when they loose out and gain nothing when all goes well? why not compensating as well the Maxwell pensioners, the BCCI savers, the Barings, and all those whose investments went south ?
    Where are we gonna find the cash to pay for all this when already £60bil has gone on Norther Rock. If you are not prepared to risk your capital keep your money in a bank account. Dont expect the taxpayer to bail you out because your investment has gone sour.

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