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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

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BFCSA: David Murray warns Banks there will be a correction. Bank Victims ask "and what about us?"

Posted by on in ROYAL COMMISSION URGENT
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http://www.afrsmartinvestor.com.au/p/shares/banks_told_to_brace_for_correction_a8rwhaXju7rXzDFaznEtzK

Banks told to brace for correction

Published 22 August 2014

Key takeaway: FSI chair warns inevitable correction will put more ­political pressure on financial systems.

David Murray has said his Financial System Inquiry needs to shore up the banking system to be ready for a ­correction in asset prices that have been inflated by unprecedented global ­monetary stimulus.  In a speech that adds to comments two days ago by Reserve Bank of ­Australia governor Glenn Stevens that investors have become too ­complacent about market pitfalls, Murray put the argument for increased ­regulation of the financial industry.

“The ­post-crisis monetary ­settings have distorted asset prices again,” he said. “That is going to cause a correction at some point, which will put more ­political pressure on financial systems.”  The potential for a fall in share and property prices would expose the Australian banks to big losses.

Murray suggested in his interim report last month the banks might need to hold higher levels of capital to protect the system from systemic risk created by their high leverage to housing. Murray’s remarks are likely to increase anxiety within Australia’s ­biggest banks, which are worried about the impact on their profitability of being forced to hold more capital to provide a buffer against a market correction.  Higher capital reserves could reduce credit in the economy, lower profits and hit banks’ share prices, putting ­pressure on the whole sharemarket.

The remarks coincided with the arrival of yet another market milestone on Thursday: Australian shares hit a post-crisis record after a three-week surge that added 4 per cent to the benchmark index.  Surging prices in Australia are ­overshadowed by even bigger gains on Wall Street, where equities indexes have hit records on optimism about an economic recovery in the world’s ­biggest economy.  Murray said Australia was in a regulatory “quandary” because it “didn’t appear to be damaged by the [2008] crisis” but “we now need to strengthen the system in some ways”.

He added consumers needed “more recourse” than they have for times when banks run into trouble.  He said as a capital importer, ­Australia would not able to withdraw from the global regulatory push, even though some of the post-crisis ­regulation had been introduced without sufficient assessment of the costs..............Big banks reject suggestions ­additional safeguards need to be ­introduced to avoid future crisis.................Munchenberg said an example was the call for ever higher levels of bank capital, “supposedly to make banks safer – but at what cost to banks’ ability to serve economy? We must remember the safest car is the one that doesn’t move”.  Careful consideration also needed to be given to policy developed overseas, he said.  “Just because someone else has done something is not sufficient reason for Australia to do it.”............

 

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  • Aries
    Aries Sunday, 24 August 2014

    If all goes against bank victims at this inquiry the LNP will be wiped out at the next election.
    Mathias Cormann you will be at the forefront of the blame and so will Joe Hockey.
    Thousands of victims will turn their backs on the Liberals.

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  • setup
    setup Sunday, 24 August 2014

    There needs to be a controlled regulation of the entire financial industry. and where are the victims in all of this? Not one word has been mentioned about us victims. We are the ones badly hurt by the reckless lending practices but to them we are not important. We do not exist. You're right Aries, thousands will turn their back, on the Liberals if this goes against us.

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