BFCSA Blog

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

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Banking Crisis  explodes in Europe on a Sunday Afternoon: AUSTRIA ORDERS FIRST-EVER BANK "BAIL-IN"; TAKES DEPOSITORS MONEY FOR FAILED BANK Post by U.S.Reporter Apr 10, 2016   https://www.superstation95.com/index.php/world/1142   12:00 Noon EDT: In a move which could trigger a collapse of European banks, Austria  "Bailed-in" a failed bank; seizing depositor money to pay bank debts, leaving citizens broke.  This could be the actual start of a complete systemic banking collapse in Europe as panicked citizens, seeing their fellow depositors wiped out in one fell swoop, start pulling their money out of the banking system.  This has "DISASTER" written all over it. Just over a year ago, a black swan landed in the middle of Europe, in what was then dubbed a "Spectacular Development." In Austria, the "bad bank" of failed Hypo Alpe Adria - the Heta Asset Resolution AG - itself went from good to bad, with its creditors forced into...
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  Derivative Armageddon by Barnaby Is Right How would this looming US Bank scenario impact Australian Banks and especially borrowers? Would our Australian Bankruptcy Laws impact this way or would they protect us? ASIC is awfully and criminally quiet while all this is going on ...   From America ... September 19, 2013   By Ellen Brown Increased regulation and low interest rates are driving lending from the regulated commercial banking system into the unregulated shadow banking system. The shadow banks, although free of government regulation, are propped up by a hidden government guarantee in the form of safe harbor status under the 2005 Bankruptcy Reform Act pushed through by Wall Street. The result is to create perverse incentives for the financial system to self-destruct. Five years after the financial collapse precipitated by the Lehman Brothers bankruptcy on September 15, 2008, the risk of another full-blown financial panic is still looming large,...
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  • doyla66
    doyla66 says #
    I hope Tony Abbot and Joe Hockey are up to speed with this scenerio and not taking advice from Greg Medcraft or ASIC or God save o
  • doyla66
    doyla66 says #
    Neil ~ Medcraft as its chair, "wants to ensure IOSCO proactively works to ensure markets are fair, efficient & reducing systemic r
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  Date September 15, 2013         (1) Julie Power  SMH The Cash Store, one of Australia's largest payday lenders that charges borrowers $120 in fees and interest on a 30-day $500 loan, could face multimillion-dollar fines if found guilty of breaching responsible lending laws. These loans create a ''debt trap'', say consumer groups, making additional problems for cash-strapped borrowers such as Robin Smith (not her real name). A community worker and problem gambler, Ms Smith was so desperate for money when she started taking out payday loans in 2010 that she did not ask about the charges or interest rate. ''It didn't matter because I needed a quick fix for my gambling.'' Over the next three years, she took out 73 payday loans, including 14 with the Cash Store.  <iframe id="dcAd-1-4" src="http://ad-apac.doubleclick.net/N6411/adi/onl.smh.news/national/nsw;cat=national;cat1=nsw;ctype=article;pos=3;sz=300x250;tile=4;ord=6.7876074E7?" width='300' height='250' scrolling="no" marginheight="0" marginwidth="0" allowtransparency="true" frameborder="0"> </iframe>  For every $100 loan, the Cash Store - like other payday lenders...
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  • doyla66
    doyla66 says #
    For ASIC to look into the fraudulent loans "wouldn't be in the public's interest" Ali, but taking down a small business would make
  • doyla66
    doyla66 says #
    Love your flair Ryan!!! Good ol Asic.....typical of them purposely picking on a minute matter (and i mean minute in camparison to
  • doyla66
    doyla66 says #
    Well done ASIC it must really feel like a mammoth win taking a pimple off an elephants bum. You gloat your brilliant detective wor
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Payday lender Cash Store probed by ASIC by: John Rolfe From: News Limited Network June 06, 2013 10:22AM      Too easy? The Cash Store is being probed by the corporate regulator over allegations including whether it has lent money that can't be repaid. Source: News Limited THE nation's second-largest payday lender is being probed by the corporate regulator over allegations it has doled out loans that can't be repaid.           The allegations made to the Australian Securities and Investments Commission include that The Cash Store's credit assessment calculator has recommended loans even when a customer's budget was in the red. News Limited has seen an assessment showing a customer with expenses exceeding his or her monthly after-tax income was considered eligible for a one-month loan. The Cash Store said it was not a true reflection of how the calculator worked. And while the numbers were not disputed, the company argued the "system''...
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Where is the Australian Justice System?  ASIC snooze at the Wheel of Fortune.  ASIC snooze and you loose. Wait until the Police find out their parents have been taken for a mortgage ride. Yes indeed there are members of the State Police Forces who have had to seek help from us.   Others have asked what the pitfalls are........Police, Teachers, Nurses have been targeted by Lenders.   Bank of America may face civil charges 2 August 2013 AAP THE SEC is set to lay charges against Bank of America over mortgage-related matters, and against Merrill Lynch over a collateralised debt obligation probe.   The bank said in a regulatory filing on Thursday that the US Department of Justice told the company that it intends to file civil charges related to one or two jumbo-prime securitisations. The Securities and Exchange Commission (SEC) is also considering filing civil charges against Merrill Lynch tied to a collateralised debt obligation investigation....
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  • doyla66
    doyla66 says #
    Look how long it took to bring the Goldman Tourre Paulson case to court in the US! Movies have been made and released, books publ
  • doyla66
    doyla66 says #
    Yes Denise, only yesterday--SEC Wins as Ex-Goldman Executive Tourre Found Liable For Fraud by failing to disclose billionaire John
  • doyla66
    doyla66 says #
    In 2007 email Tourre told his girlfriend at the time that the "whole building is about to collapse anytime now," referring to fina
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If you happen to be a Bankster, and you invent a monstrous fraud, then flag it to all your competitors so it becomes the "norm" and the scam just happens to be a GOLD MINE in Big Fat Bonuses for all concerned: aggregators, planners, broker, lawyers and LIQS......then what happens when the fraud becomes volcanic lava flowing out onto the streets?  Ooops!  The plebs have awoken and started to smell the fumes from the over-heated LOW DOC market. NOW WE HAVE THE CORRECTED LAFS CAPER......................CBA STYLE! One of our members asked THE COMMONWEALTH BANK for her LAF and sent it in to a less than helpful FOS.  The income had been fudged upwards by over $100,000....you all know this as "the usual model."   The document was definitely altered after she signed and without her knowledge or consent.   Then a year later, because the LAF was a typed up electronic 7...
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  • doyla66
    doyla66 says #
    Has there ever been 2 royal commissions running at the same time in Australia previously? If not, then we have an idea as to why a
  • doyla66
    doyla66 says #
    Finally after 3 years of requesting our LAF's from the Nab it came to light that the Broker never completed any. Proven fact now.
  • doyla66
    doyla66 says #
    Our once trusted leaders are not so trusted anymore. Aussies are waking up to Regulator's laid back don't care and very corrupt at
  • doyla66
    doyla66 says #
    Priceless! "Trusted Banks" - ROFLMAO!!! Either APRA are very stupid or they would have no figures whatsoever and nothing to do -
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REYKJAVIK, Iceland — As chief of police in a tiny fishing town for 11 years, Olafur Hauksson developed what he thought was a basic understanding of the criminal mind. The typical lawbreaker, he said, recalling his many encounters with small-time criminals, “clearly knows that he crossed the line” and generally sees “the difference between right and wrong.”                Today, the burly, 48-year-old former policeman is struggling with a very different sort of suspect. Reassigned to Reykjavik, the Icelandic capital, to lead what has become one of the world’s most sweeping investigation into the bankers whose actions contributed to the global financial crisis in 2008, Mr. Hauksson now faces suspects who “are not aware of when they crossed the line” and “defend their actions every step of the way.” With the global economy still struggling to recover from the financial maelstrom five years ago, governments around the world have been criticized for largely...
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  Iceland: Prosecutor Issues Charges Over Collapse of 2 Banks in 2008 By SARAH LYALL Published: March 22, 2013 A special prosecutor in Iceland issued indictments this week against the chief executives and 14 other employees of two banks whose spectacular collapse during the financial crisis of 2008 sent the Icelandic economy into a tailspin. In one of the world’s most ambitious prosecutions stemming from the crisis, the 16 people are being charged with manipulating the financial markets and with putting their institutions in jeopardy by flouting internal rules. Among other things, the indictment says they issued loans to friendly companies that in turn used the loans to buy shares in the banks, elevating their stock prices. The people charged could face up to six years in prison if convicted.             A version of this brief appeared in print on March 23, 2013, on page A8 of the New...
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  • doyla66
    doyla66 says #
    Parliamentary elections in Iceland will be held 27th of April 2013
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Banksia Securities victims write letter to Warrnambool Standard
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RBS shareholders sue Fred Goodwin for £4bn claiming former boss misled them over £12bn rights issue 19 Oct 2012 00:01   DISGRACED former bank boss Goodwin faces being hauled through the courts after 12,000 shareholders, including RBS customers and staff, decided to take action. Full story OUTRAGED RBS shareholders have launched a £4billion legal case against Fred “The Shred” Goodwin. The Record can reveal that the disgraced former bank boss faces being hauled through the courts after 12,000 shareholders, including RBS customers and staff, decided to take action. They are suing after Goodwin and other RBS bosses allegedly lied to try to scrape together £12billion to save the crippled bank four years ago. Goodwin, former chairman Sir Tom McKillop and former investment banking chief Johnny Cameron could be called to give evidence early next year. Lawyers representing the RBS Action Group will issue a writ just before Christmas claiming the trio...
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Welding, fv. CEO of Glitnir, the Reykjavík District Court today sentenced to nine months, six months suspended. Requested five and a half years' imprisonment on him, and five years in prison over Gudmund Hjaltasyni, former. Director of Corporate Finance. Gudmund received the same sentence and Welding. Lara and Gudmundur were accused of having taken the decision to lend Milestone 102 million, which was about ten billion in the form of money market lending 8th February 2008. The loan was granted without collateral and guarantees, and the decision taken outside meetings risk committee. They both refused to blame. Prosecutor in the case said the main hearing to prove was that Lara and Gudmund had violated the rules of the loan with the bank the loan. Broken holds that they abused their position within the bank and would be a serious trúnaðarbrot case, unauthorized appropriation of vast resources would lead to financial loss...
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  • doyla66
    doyla66 says #
    Watch out Aussie banksters, you are headed in the same direction. BFCSA will not give up the fight until all you disgraceful creat
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Yesterday's Australian Financial Review article must go down in Australia's history as as an all time low even for ASIC: "Investors Must Pass Exam: ASIC."   The AFR used ASIC's driveling nonsense as front page lead story.  However, the fact that ASIC CHOSE to run this story on the very day 14,000 Banksia investors were to receive bad news right before Christmas, is a demonstration how ASIC is prepared to cast blame on everybody else for ASIC's decade of neglect and show a complete INSENSITIVITY towards aggrieved consumers.   Chairman Greg Medcraft wants to run IOSCO, the International Org of Security Chiefs.  He was prepared to give the Mums and Dads a whack over the head for not having any intelligence. If there was any merit in the idea, he lost it in the timing of the delivery.  He also upset the Financial Planning Industry and the Banking Sector.....but we care not about them.  What...
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  • doyla66
    doyla66 says #
    The Federal Government needs to get rid of ASIC & sack Medcraft immediately. Medcraft should be investigated for corruption as he
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Posted by on in Bank Collapses
LIBOR Arrests
Thomas Hayes, a former trader at UBS AG and Citigroup, was arrested by the Serious Fraud Office and City of London Police today, said the people, who asked not to be identified because the investigation is ongoing. The three men arrested, ranging in age from 33 to 47, are all British nationals living in the U.K., the SFO said in an e-mailed statement. British police have made their first arrests in an investigation into attempts by banks to manipulate the global benchmark interest rate Libor, detaining three men after their homes were searched.   Three U.K. citizens, ages 33, 41 and 47, were taken to a London police station for interviews "in connection with the investigation into the manipulation of Libor," the Serious Fraud Office said in a statement.   The office, a government agency that investigates serious or complex fraud and corruption, began its inquiry in July after Barclays (BCLYF) admitted rigging Libor and agreed...
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  • doyla66
    doyla66 says #
    "The scandal cost Barclays' chief executive Bob Diamond his job" Is that all the punishment he gets for such a horrendous crime? H
  • doyla66
    doyla66 says #
    The arrests have started. Many more are to come. There are many others currently being investigated.
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RECEIVERS have revealed Banksia Securities Limited (BSL) might have been insolvent for some time before the financial firm’s collapse in October.   Full Story by  By EVERARD HIMMELREICH Dec. 10, 2012, 4 a.m.   A report by receivers McGrathNicol has given insights into the demise of the firm which had 10 offices in Victoria, NSW and South Australia, including one in Warrnambool. When it was placed in receivership on October 25, the company had raised $663 million from investors who now face the prospect of only getting back between 50 and 65 cents in the dollar. After analysing the loans, “it is clear that the company is insolvent and may have been insolvent for some time prior to our appointment”, the receivers said. They said that while the company’s accounts for 2011-2012 reported a profit, the provisions made for bad loans during the year were “materially insufficient”. Had greater provisions been made earlier,...
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Warrnambool woman Barbara Richards has had to re-think her retirement plans after losing money in the collapse of Banksia.
News Local News Larger / SmallerNight Mode Banksia victim's super loss scuttles retirement plans Save By EVERARD HIMMELREICH Nov. 8, 2012, 4 a.m. Warrnambool woman Barbara Richards has had to re-think her retirement plans after losing money in the collapse of Banksia. FOR Barbara Richards, the collapse of Banksia Securities last month  means she will be working longer before retirement. See your ad here Ms Richards, aged in her mid-50s, set up her self-managed superannuation fund with Banksia about eight years ago because it offered an opportunity to support the south-west economy. “The interest rate was not my main concern,” she said. “I wanted to help local farmers and business, to help young ones get a house.” Banksia’s collapse last week has not only forced her to rue her altruistic motives, it means she has to start again with retirement plans. Ms Richards, of Warrnambool, has since set up another self-managed superannuation fund with...
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$100m high-flier McIvor now a bankrupt:~ Lucy Ardern   |  November 29, 2012 --- ONLY a year ago Mark McIvor and his family put their wealth at about $100 million -- but yesterday the Federal Magistrates Court of Australia declared the merchant banker a bankrupt. Mr McIvor, who founded Gold Coast merchant bank Equititrust, did not attend the court hearing and there was no one to represent him when Registrar Baldwin made a sequestration order against his estate.The bankruptcy lodgment by David Tucker and his legal practice partner Richard Cowen of a creditor's petition with the court came after the parties were unable to agree on payment for legal costs.Mr Tucker was Mr McIvor's personal lawyer for more than a decade and provided services for Equititrust for many years through the firm Tucker and Cowen.The relationship between the two took a turn for the worse when Equititrust started to experience financial troubles...
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John Dagge of the Herald Sun (Full Story) Reports the ANZ boss as saying that it is clear that many investors in the failed rural lender Banksia believed they were dealing with a bank.  "A number of these institutions were perceived as being banks when they were not", Mr Mike Smith yesterday.   (NB: Mr Smith earns $5,600,000 a year which is $15,300 every day, 365 days a year.  Wonder if he can afford a turkey for Christmas?  Oh, that's right, he's got thousands of turkeys, commonly know as 'customers')...
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  • doyla66
    doyla66 says #
    "Should have known"? ... like borrowers should have known that they couldn't afford a loan ... and have had the foresight to ask t
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  Rules governing non-banks need to be tightened: Bob Edgar   --By Larry Schlesinger,  Monday, 26 November 2012 The former ANZ Banking Group deputy chief executive Bob Edgar has called for tougher laws governing the non-bank lending sector following the collapse of Banksia and Provident Capital. Edgar said it was “surely no accident” that Banksia chose to include the word “bank” in its name. “Anything that has the word ‘bank’ in it or uses the word ‘bank’ in a prominent fashion is effectively purporting something about itself,” said Edgar in an interview with the Australian Financial Review. Edgar says it is the responsibility of prudential regulator APRA to get the laws changed to prevent Banksia using such a name. Banksia collapsed in October owing 3,000 small investors a combined $650 million while Provident Capital collapsed in July owing investors over $100 million. Both Banksia and Provident Capital’s debenture funds come with no government...
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    doyla66 says #
    " . . . also had a go at federal treasurer Wayne Swan for urging borrowers to seek an alternative to their bank following interest
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Frustrated Provident Capital debenture holders to vote on fairer distribution policy at December 13 meeting --By Larry Schlesinger [19 Nov 2012] --A meeting of Provident Capital ["PC"] debenture holders has been called for December 13 with the aim of voting on a new arrangement, which receivers PPB Advisory -- who have recovered funds from just two of the 49 loans -- believe will result in a more efficient and fairer distribution of money following the non-bank lender and mortgage fund manager being declared insolvent. PC -- a lender of last resort -- collapsed in July leaving around 3,500 small investors who placed their savings in Provident’s fixed interest debenture fund out of pocket with an average investment size of $30,000. The fund was frozen when Provident collapsed and investors have not received any payments in the past five months. Since their appointment PPB Advisory have recovered funds from just two of the 49 loans...
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  • doyla66
    doyla66 says #
    The properties to be liquidated: these were from PC loans? Classic scenario that we've all been dreading? "Planning issues" - mor
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Posted by on in Bank Collapses
November 13, 2012 8:42PM Story ALMOST 50 staff will lose their jobs with all of Banksia Securities' branches to close Non-bank lender Banksia Financial Group has reviewed its operations and decided to close all of subsidiary Banksia Securities' 10 branches, Banksia Securities receivers McGrathNicol said on Tuesday. A total of 47 staff will lose their jobs: all 28 branch staff plus 19 positions at the group's administration centre in Kyabram in regional Victoria and its head office in Melbourne. McGrathNicol said the remaining 37 staff at the Kyabram and Melbourne offices were focused on activities related to debenture holder returns including loan recovery processes and dividend payment requirements. The receivers will ensure all entitlements of all employees are paid in full, McGrathNicol said. The eight Victorian branches - in Ballarat, Bendigo, Echuca, Geelong, Kyabram, Shepparton, Tatura and Warrnambool - and another two in Adelaide and Albury, NSW, will close on Friday. Banksia...
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