BFCSA Blog

 Hi members, Just like to say how disappointed I am that I can't be in Sydney this week to see Mr. Greg Medcraft squirm in his chair as he tries to remember the lies and corruption  he has to cover up when answering the Senates questions. As this is all going on I am in the last week of trying to save myself from being evicted and losing my home.To get your loan frozen even when someone has been charged with some of the fraud on my loan is costly and almost impossible to achieve.  I will know by next week. The real culprits in this fraud have so far escaped prosecution and have passed the buck down the line. I can only hope and pray that the Senators listen to Denise as facts and figures don`t lie and they freeze all these TOXIC loans so we can at least have them all...

Dear members Nine BFCSA members plus our leader Denise attended the Senate hearings into ASIC today. Less than ten feet in font of me sat Medcraft, Kell, Tanzer, Day, Price and three other commissioners behind them sat two rows of helpers who would pass forward notes in response to the Senators questions. Greg Medcraft opened with a pre prepared speech. Senator Williams questioned  them strongly and put Chairman Medcraft in his place a couple of times. All the Senators didn't hold back and when Chairman Greg was answering a question seven little bobble heads nodded in unison, it looked quite funny.Senator Williams grilled Medcraft over his overseas trips with IOSCO. If you check out the Business on ABC24 tonight you can check some of it out. Thanks Neil T....

Dear Members It amazes me that as we fast approach the Senate hearings every day brings more bad publicity for ASIC. As a bipartisan exercise regardless of political allegiances, it can't bode well for them. At present the PM and Treasurer are getting no, or very little return on their money by ASIC's performance. I don't know whether anyone will actually take the time to work out how much money has been lost by the big collapses like Storm or Trio, plus all the others. The financial and human cost to individual investors and victims of loan fraud is incalculable and all this because some overpaid individuals got complacent and thought they knew best. They were given the tools and rules to carry out their mandate but instead of carrying out the job they were heavily funded for, they got lazy. What started as a trickle of FOB OFF letters has...

  Incomprehensible, inept and just wrong TERRY MCCRANN HERALD SUN FEBRUARY 12, 2014 12:00AM WHAT Peter Mason, the soon-to-be ex-chairman of David Jones, did was utterly incomprehensible. It was also very badly wrong.  What the ‘invisible man,’ Greg Medcraft, still the chairman of ASIC, did NOT do, was merely embarrassingly inept. It was also plain wrong.  Late last year Mason, who’s been a respected and highly successful investment banker for over 40 years and an effective non-executive company director more recently, signed off as the company’s chairman, on two DJ directors buying shares in the company.  That in itself would be unremarkable; and we normally would never even hear about it. Except, that three days after the two directors, Steve Vamos and Leigh Clapham, went ahead and bought their shares, DJ released its first quarter sales numbers.  Sales bettered market expectations and the DJ share price leapt 6.6 per cent. If the...

Dear members Its the ground swell of public discontent at ASIC's performance  that has now reached tsunami levels. Even on short notice of dates and venue BFCSA's presence will be felt. After ASIC head Greg Medcrafts appearance we are up against a majority of hard hitters who are predominately pro-ASIC from the ASIC Gene-Pool, you can form your own opinions because each witness has a submission number next to their title so you can refresh your memories. I have read all the submissions to the Senate hearings and all those who are pro-ASIC seem to be people who have something to gain either directly or indirectly as ASIC stands in its present form . Some of the witnesses gain monetary profit from ASIC's inaction and others are protecting their jobs and futures while others are trying to protect the supposition that they weren't performing their duty of care to the aggrieved...

LINKS TO SENATE INQUIRY SCHEDULES http://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/ASIC/Public_Hearings You can see what times every one is committed to appear as witnesses. I suggest you read the submissions involved and make notes that may be of interest to readers Chairman of ASIC will be appearing on  Weds 19th    9am - Noon Ombudsmen will be appearing on Thurs 20th:   10am Colin Neave, then 11.15AM to 12.15PM for FOS and COSL. I will be appearing Thursday 20th:   3.15PM - 4.15PM SMC at 66 Goulburn St, Sydney This email address is being protected from spambots. You need JavaScript enabled to view it....

The biggest crime of all in this country is Australian Securities and Investment Commission's negligence in protecting consumers from predatory conduct in the Banking and Finance sector.  Bankers manufactured dirty mortgage loans and marketed these faulty products via the broker channel. ASIC KNEW the crooked bankers had set up the Brokers and Borrowers to take the blame when the sub prime lending scandal eventually emerged, from  the subterranean depths of evil.  ASIC were duplicitous in the scam.  They covered up every step of the way knowing older, low income Mums and Dads (ARIP's) were the target.  Those who were fortunate and worked hard to own their own home. You may say these people were the backbone of our nation - proud Australians.  Yet ASIC permitted the banks to be untouchable.  Treasury covered up as well, so they could both blame one another.  ASIC briefs Treasury once per month and we can...

There have been some very greedy people in the banking and finance sector and ASIC had no appetite for assisting in the protection of consumers.  More profits were in store for Bankers if ASIC cared not to bother to look at the business model of fraudulent LAFs.  The worm has turned and members will be able to experience Parliament in action.  The Senators understand these issues.  Its the Lower House that has a few problems understanding whats good for this country.  This nation was built on common decency and hard work - that's 95% of us. We now need to all take a big interest on what our Parliament is capable of delivering - from the Senate.  No Party is in control of the Senate at this moment in time.  Here is the program for each day of witnesses.  You can stream in live AUDIO via Senate Media link..............listen to every...

  ASIC targets loan fraud, threatens jail time           13 February 2014 | Nick Bendel   ASIC has announced a crackdown on loan fraud and unethical financial advisers. Commissioner Greg Tanzer said the regulator had a “strong record on enforcement” and had achieved 340 “enforcement outcomes” for the six months to 31 December 2013. That number included criminal and civil actions as well as the banning or disqualifying of individuals and companies, he added. Mr Tanzer said ASIC had also achieved some “negotiated outcomes” that resulted in financial services firms implementing long-term cultural changes. “At the moment ASIC is focusing on stopping misleading advertising of products and services and market misconduct, including insider trading. We are also strong on the responsibility of gatekeepers – people like directors, financial advisers, auditors and liquidators,” he said. “Our future areas of focus include loan fraud, false accounting, and takeovers and shareholder disclosure,...

Dear members First and foremost the Senate hearings into ASIC have been known about for some time , it just seems incomprehensible why it was left so late to book a venue or confirm dates. I realise the  election and its run up caused many issues so I don't know whether its bad timing, bad planning or a deliberate act to shield ASIC from the"mob" who gather to voice their protests at ASIC  performance. To give people less than a weeks notice of proceedings is very inconsiderate, Denise for example has to up stumps from country W.A. If Greg Medcraft is appearing how much notice did he get considering his busy schedule at IOSCO and ASIC? If there were any motives to dampen BFCSA attendance and numbers its failed because we will be represented and Denise will be our voice loud and proud. Short notice of the hearings might diminish the...

Medcraft is attempting to orchestrate the loooooooongest list of excuses, as to why he has to lie to Parliament and say "no systemic issues in banking practices regarding obvious fraudulent loans and barrels of Maladministration in Lending.  In other words to say every mortgage loan application approved by Banker Mates was checked and verified as affordable loans to people who could afford to sustain repayments. You can see the build up in small stream media.  You can almost guess the exact words these luminaries will use on the witness stand prior to Greggie flying off on his usual IOSCOnian Adventures.   The problem is Mr Medcraft, you Sir will be leaving behind fractured banking industry riddled with bad practices, bad procedures and definitely toxic financial products, riddled with fraud.  You did not start the banking cartel here, but you were in on the ground floor in 1994.   You will attempt...

  An update from the Code team  (My comments in italics)     The Code Compliance and Monitoring team is a separate business unit of FOS. Our purpose is to assist the independent administration and monitoring of compliance with industry Codes of Practice in the financial services sector. We assist in monitoring the Code of Banking Practice, the Customer Owned Banking Code of Practice.  There are 694 financial services providers that subscribe to these four Codes. Code monitoring activities in the banking, customer owned banking  are overseen by Code Compliance Committees which comprise an independent Chair, a consumer representative and an industry representative. These committees operate independently of the respective industries and have powers and functions to identify and address non-compliance with Code obligations. FOS provides secretariat services to each of these committees. Code of Banking Practice The annual report for the Code Compliance Monitoring Committee (Banks) was published on...

In 2009, FOS did its best to remain impartial.  However, it is now doing everything in its power under its ASIC licence, to prevent any objection to the Ombudsman's outcome.  Up until a couple of months ago, the ASIC licensed External Dispute Resolution Service ("EDR") told consumers there were four processes to complaint handling: 1.  Directions Officer to allocate a Case Manager   2.  Case Manager to investigate and deliver a comprehensive RECOMMENDATION - allowing both bank and borrower the ability to object to any anomalies or wrong assumptions/claims by the opposing party.   3. If no resolution, the matter would then be forwarded to The Ombudsman for further DETERMINATION which bank must accept.    4.  Borrower can refuse to accept  (Particularly if unfair) and the matter be then referred to a PANEL OF REVIEW. Recently, FOS has started to do away with RECOMMENDATION and PANEL OF REVIEW.  Decisions are made...

BREAKING: SMSF "one-stop shop" sees assets frozen, founder's passport seized Australian Broker News by Adam Smith | 06 Feb 2014   A collapsed SMSF one-stop shop has had its assets frozen and travel restraints placed upon its founders.The Federal Court in Adelaide has frozen all assets of the Charterhill group, a group of companies providing advice to clients on the establishment of SMFS, rollover of existing superannuation funds into an SMSF, sourcing and purchase ofinvestment properties, property management, insurance and taxation. The court also ordered founder George Nowak and his wife Betty Nowak to surrender their passports, and has restrained their travel outside Australia.The move came following an ASIC application, and an ASIC investigation into the collapse of the group is ongoing. Companies operated by the group have been placed under external control. The companies include:  Lending Solutions International Pty Ltd – liquidators appointed (Andrew Heard and Anthony Phillips of Heard Phillips) Nova Real Estate Pty...

14-018MR ASIC enforcement report – July to December 2013 Friday 31 January 2014  Even the Bank Sharks are laughing!  ASIC with 330 investigators have only found 20 of LOAN FRAUD cases!  Cover UP in Progress. ASIC today released its fifth six-monthly enforcement report, detailing outcomes achieved between 1 July 2013 to 31 December 2013. ASIC achieved 340 enforcement outcomes. This included criminal as well as civil and administrative (e.g. a banning or disqualification) actions, and negotiated outcomes, including enforceable undertakings (EU). There were 112 outcomes achieved in the market integrity, corporate governance and financial services areas, and 228 in the small business area. Current areas of focus for ASIC include cracking down on misleading advertising of products and services, market misconduct, including insider trading, and the responsibility of gatekeepers. ‘Future areas of focus include loan fraud, false accounting, and takeovers and shareholder disclosure, as well as the ongoing focus on advertising,’...

Britain's financial watchdog fined State Street U.K. 22.9 million pounds ($38 million) for deliberately overcharging its clients, and said the custody bank acted with "complete disregard" for the interests of its customers. The fine is one of the largest dished out by the watchdog in recent years, and the latest where financial firms have been found to put profit before the interest of their customers. (Read more: Nailing 'The Wolf of Wall Street': Lessons for the UK) Chris Ratcliffe | Bloomberg via Getty Images Between June 2010 and September 2011, State Street U.K., a unit of the world's second-largest standalone custody bank State Street Corp, overcharged six clients a total of $20.2 million, the Financial Conduct Authority (FCA) said. Those clients included large investment management firms and pension funds holding the funds and savings of retail investors. Custody banks manage cash for companies and handle back-office processing of securities and banking...

Dear members While trolling the Australian parliament website I came upon some text relating to contacting our pollies. There it is in black and white, we the voters and citizens of this great country have been provided with the link to contact everyone from the P.M. down to all the politicians and various departments, alas if only that was true. Nearly every member of BFCSA has tried to contact everyone from the P.M. down without much luck, I'm on my fourth P.M. now and thats not including P.M. Rudd  twice.  Some Ministers have replied albeit through staff and they just signed off on it. We even took the local M.P. route but he like most is stifled by the party machine and the underlings who run the show. We have to confront our politicians with the evidence and put them in a position where they commit to look into the matter...

From: B.D   Sent: Saturday, January 25, 2014 To: This email address is being protected from spambots. You need JavaScript enabled to view it. Subject: FOS and ASIC    Good afternoon I am attaching my story. Kind regards BD #10557  " We were lured by a broker  into taking our two low doc loans with Adelaide and St George Bank  . In both cases we lodged complaints with FOS  FOS found Adelaide guilty of maladministration and declared  St George in the clear .   In both cases neither  Adelaide or St George followed their credit policy . Individual borrowers over the age of 60 years are not to be accepted unless approved by a senior credit officer having a specified level of delegated lending authority (“DLA”). We were in our seventies when loans were taken out and both unemployed with virtually no income.    Consumer credit code , National Consumer Credit Protection  Act  and the Code of Banking Practice were not observed .  One of us  had...

Dear members I have just read Denise's supplement to her Senate submission. First I would like to say a heart felt thanks from all of us for the long hours and effort that you and your helpers have dedicated trying to help a group of people who the majority of you have never met. There are reasons why things happen in life, some call it fate , others say karma but whatever the reason, here you are leading a band of just over eleven hundred souls taking on a failed system in the persuit of justice. What a perfect storm the banksters had, they had engineered the perfect product. These low doc, no doc and full doc loans could be manipulated to pay back high interest and no principle in most cases, they're a higher return than variable loans and when they start to implode like they're geared to they offer...

If ever the Senators start doubting the untruths and false impressionism dripping from the lips of PETER KELL, Deputy Chairman of Australian Securities and Investment Commission (aka "Australian Non Regulator's Club") then you may well be seething in rage as to why Kell seems to not understand how to use his computer.  Poor Pete is so computer illiterate he is unable to google....................Pete, we are really trying to help you.   Just try 95% LVR via google and you will see all the BIG BANK LOGOS...... Consider this Pete, why would a Broker advertise something he cannot sell.................a Mortgage with 95% LVR!!!  The Banks are the manufacturers and you seem to want to keep blaming the sellers....why? And all MORTGAGE EXPERTS ARE LICENSED BY ASIC!!!!  So who are the Banks backing Marty?  There are many Marty's out there...................all backed by your favorourite sub prime toxic loan specialists MAJOR AUSTRALIAN BANKS (85%...