Mecky Posted June 28, 2012 Share Posted June 28, 2012 We need a public enquiry (a la leveson style) into Banking, the crash of 2008, the role of politicians, bankers & the regulators. And way they all got promoted.... 2 blogs i read that both ask for similar, both really worth a read.... http://www.ianfraser.org/why-we-need-a-proper-independent-inquiry-into-uk-banks/ http://coppolacomment.blogspot.co.uk/2012/06/financial-nuremberg.html?showComment=1340580745408#c5489488100054919790 I think Frances Coppola's idea is more important, as the issue is Global. But why, it's not just the UK is it? China is swallowing up everything it sees and wants. Link to comment Share on other sites More sharing options...
green Posted June 28, 2012 Share Posted June 28, 2012 But why, it's not just the UK is it? China is swallowing up everything it sees and wants. Did you read the blogs Mecky? Come on....have a read....then lets discuss. Link to comment Share on other sites More sharing options...
I1L2T3 Posted June 28, 2012 Share Posted June 28, 2012 Lord Oakeshott: 'The whole city knew Barcley's Capital under Bob Diamond was a casino, but not that they were rigging the wheels and loading the dice.' If somebody was caught doping racehorses, they'd go to prison. I don't see this as any different. I want to see Bob Diamond (and quite a few others) in chains. Bob Diamond: 'Time for banker remorse is over', January 2011 What a snake. Link to comment Share on other sites More sharing options...
Jag82 Posted June 28, 2012 Share Posted June 28, 2012 Lord Oakeshott: 'The whole city knew Barcley's Capital under Bob Diamond was a casino, but not that they were rigging the wheels and loading the dice.' If somebody was caught doping racehorses, they'd go to prison. I don't see this as any different. I want to see Bob Diamond (and quite a few others) in chains. Let's rewind a bit. We wake up one morning in 2008 and discover a financial crisis, it hadn't happened overnight, the finance sector knew that it was going to happen sooner or later. Collateralized Debt Obligations (CDOs) : take lots of loans/debts (mortgages) in this case, package them up in big parcels give them a grading signifying their quality (probability that they will be serviced), sell the nice pre-packaged parcels of interest bearing debt (mortgages) on the financial markets. So far so good, the Markets providing the finance for people to buy homes while providing investors with a decent return on investment (everyone's a winner luvly jubbly). Consider the downside/flaws:- when advancing a loan it is good practice to make sure that the lender will be able to repay, he doesn't lose his house, you make a profit. If you are going to parcel up the loans and sell them on you no longer have to worry about the long term e.g. getting repaid, you will get your money back straight away with a margin by launching the loans onto the market. The ratings on the loans show that they are likely to be repaid ? In theory yes, in practice one buys the rating from the ratings agency for a fee, one doesn't buy bad ratings, getting the picture? We now have loans packaged wholesale with good ratings launched onto the markets straight away, we get our initial investment back with a small margin straight away, let's play the turnover game, get a small margin quickly and often, this is a good game, lets increase turnover, we don't need to worry about the financial bona fides of our borrower we are getting in and out of the market quickly, we will offer loans to those without jobs,income and assets ninja mortgages, we can sweeten it a bit more we will offer 125% mortgages buy a house chuck in a car, we now have demand for our loans which is pushing up the price of houses which is perpetuating the perception that everyone needs to get a mortgage yesterday. This can't of course go on for ever, the Banksters are NOT stupid, everyone that mattered knew that the day of reckoning would come, come crunch time your last deal is going to bomb, however, loads of luvvly jubbly has been made on the way, The Financiers know that they are (TOO BIG TO FAIL) so when the brown stuff hit the fan Governments are going to have to pay, which is shorthand for YOU have to pay. Meanwhile every financial institution is now holding unknown quantities of what is in effect dog turds wrapped in Harrods' gift boxes. Mortgages are no longer available, property prices bomb the downward spiral starts. The crisis arrives we are where we are, The FSA knew, The SEC knew, everyone except you knew and it is you that has to pay the bill. Years pass you all forget and then get shocked and surprised all over again. Link to comment Share on other sites More sharing options...
Anna B Posted June 28, 2012 Share Posted June 28, 2012 Let's rewind a bit. We wake up one morning in 2008 and discover a financial crisis, it hadn't happened overnight, the finance sector knew that it was going to happen sooner or later. Collateralized Debt Obligations (CDOs) : take lots of loans/debts (mortgages) in this case, package them up in big parcels give them a grading signifying their quality (probability that they will be serviced), sell the nice pre-packaged parcels of interest bearing debt (mortgages) on the financial markets. So far so good, the Markets providing the finance for people to buy homes while providing investors with a decent return on investment (everyone's a winner luvly jubbly). Consider the downside/flaws:- when advancing a loan it is good practice to make sure that the lender will be able to repay, he doesn't lose his house, you make a profit. If you are going to parcel up the loans and sell them on you no longer have to worry about the long term e.g. getting repaid, you will get your money back straight away with a margin by launching the loans onto the market. The ratings on the loans show that they are likely to be repaid ? In theory yes, in practice one buys the rating from the ratings agency for a fee, one doesn't buy bad ratings, getting the picture? We now have loans packaged wholesale with good ratings launched onto the markets straight away, we get our initial investment back with a small margin straight away, let's play the turnover game, get a small margin quickly and often, this is a good game, lets increase turnover, we don't need to worry about the financial bona fides of our borrower we are getting in and out of the market quickly, we will offer loans to those without jobs,income and assets ninja mortgages, we can sweeten it a bit more we will offer 125% mortgages buy a house chuck in a car, we now have demand for our loans which is pushing up the price of houses which is perpetuating the perception that everyone needs to get a mortgage yesterday. This can't of course go on for ever, the Banksters are NOT stupid, everyone that mattered knew that the day of reckoning would come, come crunch time your last deal is going to bomb, however, loads of luvvly jubbly has been made on the way, The Financiers know that they are (TOO BIG TO FAIL) so when the brown stuff hit the fan Governments are going to have to pay, which is shorthand for YOU have to pay. Meanwhile every financial institution is now holding unknown quantities of what is in effect dog turds wrapped in Harrods' gift boxes. Mortgages are no longer available, property prices bomb the downward spiral starts. The crisis arrives we are where we are, The FSA knew, The SEC knew, everyone except you knew and it is you that has to pay the bill. Years pass you all forget and then get shocked and surprised all over again. Good post. I most certainly didn't forget and have even started a thread on here about people's apathy. They say a week in politics is a very long time, well a week in banking it seems is even longer. But what can you do? People are only interested for a short time then move on even if the problem doesn't. You only have to look on here at the drubbing Occupy get every time it tries to raise issues, (and for the last time I am not a member!) but I do listen to what they say and check it out. Most people only believe what they see on the telly and read in the papers, which is heavily edited to put it politely. The number of people on here defending banks, politicians etc and refusing to believe they are incapable of wrong doing is staggering. They still believe this is a party issue, or all our own fault because 'we spent too much.' Amazing. Let's see if this wakes a few more people up. Link to comment Share on other sites More sharing options...
Stan Tamudo Posted June 28, 2012 Share Posted June 28, 2012 The number of people on here defending banks, politicians etc and refusing to believe they are incapable of wrong doing is staggering. We've long been told it's the politics of envy and jealousy Anna, but now the chickens are coming home to roost for the defenders of the rich and privileged . Link to comment Share on other sites More sharing options...
Jag82 Posted June 28, 2012 Share Posted June 28, 2012 We've long been told it's the politics of envy and jealousy Anna, but now the chickens are coming home to roost for the defenders of the rich and privaliged. Which consists of the LabConDems does it not? Link to comment Share on other sites More sharing options...
Jag82 Posted June 28, 2012 Share Posted June 28, 2012 Good post. I most certainly didn't forget and have even started a thread on here about people's apathy. They say a week in politics is a very long time, well a week in banking it seems is even longer. But what can you do? People are only interested for a short time then move on even if the problem doesn't. You only have to look on here at the drubbing Occupy get every time it tries to raise issues, (and for the last time I am not a member!) but I do listen to what they say and check it out. Most people only believe what they see on the telly and read in the papers, which is heavily edited to put it politely. The number of people on here defending banks, politicians etc and refusing to believe they are incapable of wrong doing is staggering. They still believe this is a party issue, or all our own fault because 'we spent too much.' Amazing. Let's see if this wakes a few more people up. Anna when I mentioned 'You' in my post I was of course referring to people in general and not 'You' in particular. Please direct me to your thread. Link to comment Share on other sites More sharing options...
green Posted June 28, 2012 Share Posted June 28, 2012 Which consists of the LabConDems does it not? Id say more Lab Cons....and less of the Dems actually.... Facts will show that Gordon & Balls were found wanting or asleep.. along with the regulators, auditors, major shareholders and boardrooms. Conniving or Corrupt? One day we will inevitably find out. Has anyone heard Ed Miliband asking for a banking inquiry? Trust me Labour would be mutilated in it. Angela Knight (old Tory Councillor in Sheffield) must lose a little bit more of her soul every time she has spoken out in the last few days to put forward the case for the British Bankers Association. Simply staggering on Ch4 news this evening. Link to comment Share on other sites More sharing options...
green Posted June 28, 2012 Share Posted June 28, 2012 Just googled the BBA......and guess what......this is how their board is made up.... How are we governed? The BBA is governed by the Board, which meets 4 times per year and comprises the BBA Chief Executive and the Chief Executives of the largest banks operating in the UK, both retail, wholesale and from overseas. The Board represents the whole of the BBA membership. In addition to this the BBA Council meets twice yearly. The BBA Board is made up of senior executives from: Barclays Bank plc BNP Paribas Citibank NA Credit Suisse Deutsche Bank AG Hampshire Trust plc HSBC Bank plc J.P. Morgan Europe Limited Lloyds Banking Group Santander UK plc Standard Chartered Bank The Royal Bank of Scotland plc So i guess we can see why they wont be in a rush for any criminal proceedings. Link to comment Share on other sites More sharing options...
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