Tuesday, September 15, 2009

Them’s big scary numbers!

UK lenders face £130bn more losses from financial crisis

"Moody's, which last week reconfirmed the UK's AAA credit rating, expects losses at banks and building societies to reach £240bn. Lenders have taken £110bn of losses so far and face another £130bn over the next few years. The agency explained that it "expects the sustained weakness of the UK macroeconomic environment to feed through into higher loan arrears with ensuing pressure on profitability and capital". Moody's report came as research from FTI Consulting found that a majority of leading global fund managers do not believe the financial crisis is over. Of 153 fund managers interviewed in 15 countries with €2.8 trillion (£2.5 trillion) of funds under management, 64pc said there was worse to come for the banks."

Posted by mark wadsworth @ 11:50 AM (1004 views)
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7 thoughts on “Them’s big scary numbers!

  • Mark off this topic, have you a link that explains LVT or is it as simple as the more land you own, the more tax you pay ? Depending on quality, farm land, woodland, building land etc.

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  • We might as well pile this bit of info on top of that from the Telegraph to try and get a better/bigger picture

    Lenders could be hiding fraud losses
    Lee Jones – 10-Sep-2009
    Experts warn that some lenders could be hiding mortgage fraud on their balance sheets. Both Chelsea Building Society and Bradford & Bingley have recently made fraud provisions of £41m and £271m respectively but experts warn that other lenders could be hiding fraud losses on their balance sheets.

    Nationwide group director Matthew Wyles, who warned the industry on newbuild buy-to-let lending in 2005, says lenders may not want to make their fraud problems public. He says: “I suspect a lot of big cases have come out but they have been quietly absorbed by the lenders who have sustained those los-ses. A lender such as Chelsea could not hide those losses but I am sure those that can have absorbed these fraud cases into their bad debt provisions and the like.”

    City of London Police economic crime directorate head detective chief superintendent Steve Head says: “I do not think we are seeing the full picture. Lenders hit by the crime usually see it first. It would be good if the lenders were coming forward more than they are at the moment.”

    SOURCE Moneymarketing http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=193012&d=340&h=341&f=342

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  • Good point jack c.

    Last time I looked, fraud was a criminal offence. Shouldn’t the police/FSA be getting a little more involved?

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  • paul – I really don’t want to elaborate too much on this subject suffice to say on the cases I have reported (one of which was fraud on a massive scale) it all fell very much on deaf ears – my Solicitor has had the same experience – please draw your own conclusions.

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  • mark wadsworth says:

    @ Jack C, good anecdotal, the whistleblower’s lot is usually an unhappy one.

    @ HappyM: “have you a link that explains LVT or is it as simple as the more land you own, the more tax you pay ? Depending on quality, farm land, woodland, building land etc.”

    LVT is as simple as you want it to be! Don’t worry about categorising into different types of land, every plot has a certain site-only value, and it is up to the owner to decide what to do with it. And the tax would be a flat rate on the value, regardless of how it is used (or indeed if it left vacant).

    You can then add your own bells and whistles to this to your heart’s content (like exempting agricultural land values, having a higher rate for commercial sites, a roll up option for pensioners, a nil rate band to exempt the lowest value houses, maybe a jealousy surcharge for higher value houses, whether the mortgage bank should be responsible for collecting it together with mortgage repayments, which taxes you want to replace, and so on).

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  • “Moody’s, which last week reconfirmed the UK’s AAA rating”

    Moody’s is taken seriously?

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