NAB JUST LOVES wants to own each and every Australian and mire them in debt..............................beware of banks saying "we will save you."

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National Australia Bank Subsidiary Clydesdale's 'Tailored Business Loans' are Hurting Scotland's Youth, Poor, Homeless and Abused, According to Scottish Charity, Destiny Church

GLASGOW, Scotland, March 26, 2014

NAB owned Clydesdale Bank has seriously hurt Destiny Church's work with the homeless, disadvantaged and women suffering from domestic violence. The Church has incurred substantial 'break costs' on loans it claims were mis-sold by Clydesdale Bank sales staff. The net effect is that Destiny Church has had to severely curtail it's charitable work with poor and vulnerable people.

Destiny Church ironically owns Clydesdale Bank's former Headquarters in Glasgow which it now cannot afford to redevelop into a Community Centre, Church and Nursery. The loans sold by Clydesdale are thought to have earned the Bank many thousands of pounds in commissions and fees.

The loan products sold to the Church had hidden financial derivatives embedded in them and according to Professor Dempster, of the Centre for Financial Research at the University of Cambridge, an expert in Financial Derivatives, the type of loans sold to the Church and others were 'mis-priced and overpriced'. The Professor illustrates the case for NAB/Clydesdale Bank mis-selling in his presentation at the NAB Customer Support Group conference (ironically at Destiny Church conference centre in Aberdeen).

It seems that 60,000 of these 'toxic loans' have been sold by High St banks to UK businesses since 2001 and there is growing pressure on the Government to include these loans in a review process which has already seen another 40,000 'similar' loans under review by UK regulator, the Financial Conduct Authority....................


Australian Broadcasting Corporation



Broadcast: 04/09/2001

National Australia Bank chief promises review as share price drops

Reporter: Alan Kohler

Australian Broadcasting Corporation



Broadcast: 04/09/2001

National Australia Bank chief promises review as share price drops

Reporter: Alan Kohler


KERRY O'BRIEN: Investors are in shock today, having seen the value of the country's third biggest company -- National Australia Bank -- drop by 15 per cent in just a few hours yesterday, before recovering just a couple of percent of that loss today.

The cause of the slump was a surprise $3-billion write-down in the value of the bank's US subsidiary, Homeside Lending.

In fact, a total write-down in a mere few months of nearly four billion.

Today the first heads rolled over the losses -- the three top executives at Homeside all fell on their swords, but so far no-one at head office in Australia has gone.

Still, chief executive managing director Frank Cicutto -- who has no intention of going himself, has begun a review of the Homeside situation, after which he says blame will be apportioned.

Business and economics editor Alan Kohler reports.

ALAN KOHLER: As the dust settled today on National Australia Bank's $3 billion loss on its American subsidiary Homeside Lending, no-one was disagreeing with Frank Cicutto's assessment of the situation.

ANDREW LEEMING, ABN AMRO: I think it would be one of shock.

HAMISH CARLISLE: It's clearly not good news.

It's clearly a significant surprise.

STAN MATHER, SHAREHOLDERS' ASSOCIATION: This has been a terrible shock to everybody concerned, I'm sure.

ALAN KOHLER: A key point is that the value of National Australia Bank shares has fallen by twice the amount of the write-off, which clearly shows that investors' confidence in the board and management -- inside head office here -- is severely damaged.

That it will take time to repair this is obvious, the only question now is whether it will also require the rolling of heads.

ANDREW LEEMING: There's always a sense of bloodlust when something like this happens and I think the management are probably going to be a little mindful that to some point they do have to satisfy the market.

The key thing here is to actually find the people that were responsible, make them accountable.

HAMISH CARLISLE: There are analysts out there and investors out there that would like to see some reshuffle of management.

I think whether or not that's going to happen is a separate question.

ALAN KOHLER: Well heads have rolled at Homeside, but what about here at headquarters?

Surely some responsibility must rest here as well?

FRANK CICUTTO, CHIEF EXECUTIVE, NATIONAL AUSTRALIA BANK: Overnight, three senior executives resigned in Homeside.

As I mentioned yesterday, there's a full review that will take place, and once I have the outcome of that review, I'll look at accountability throughout the organisation.

ALAN KOHLER: Do you personally take responsibility, though?

FRANK CICUTTO: Well, obviously the buck stops with the chief executive.

And as I said, the review will be all-encompassing and will be looked at by the board and appropriate action will be taken.

ALAN KOHLER: In any case, a core expertise of the bank -- like this is risk management -- isn't this a case that this shows that risk management failed in regard to Homeside?

FRANK CICUTTO: Obviously the write-off speaks for itself.

It's important to understand the elements of the write-off.

There was an interest rate modelling assumption error -- that accounted for part of it.

But the balance of the write-off and the majority of the write-off was to mark the asset to market.

ALAN KOHLER: But how could such a loss in value sneak up on you like that?

I mean, surely you must have seen something coming over time?

FRANK CICUTTO: Well, in July we announced that there was a hedge problem in Homeside.

At that time I took it quite seriously and sent in a team to look at the issues in Homeside, engaged outside consultants to help us with that review to determine the strategic options for Homeside and it's that process that led to the announcement that we made to the stock exchange yesterday.

ALAN KOHLER: Well, do you really, fully, now understand what went wrong in Homeside, because a lot of the criticism has been that National Bank didn't really understand the mortgage business in the US.

Are you confident that you're on top of it now?

FRANK CICUTTO: Well, we have a team in Homeside managing the issue, certainly since July.

ALAN KOHLER: I mean you, personally, as managing director of National Bank, are you confident that you're on top of it?

FRANK CICUTTO: Well, I'm managing this issue personally myself on a minute-by-minute basis.

I have a good team in Homeside to help the organisation manage the issue through.

ALAN KOHLER: There are now a few careers on the line in National Australia Bank as the review of how the Homeside losses happened, and who was responsible, gathers steam.

But where does this leave the bank and its much-vaunted global strategy, while Frank Cicutto sorts out the mess?

Credibility is in shreds.

Internal morale would have suffered, and the $3 billion loss will have to be covered.

STAN MATHER: One of the things that might get some confidence back is a concentration, for a little while, on organic growth within the business, rather than the constant desire to move offshore and do other things.

Certainly, shareholders will have a feeling that they shouldn't get involved in things that they perhaps don't fully understand until they've got their house completely in order again.

ALAN KOHLER: Where does this leave your global strategy now?

FRANK CICUTTO: Well, obviously it's a major setback.

A write-down of $3 billion as I said, speaks for itself.

But it's very important to look forward and the option that is we do have, both in this market in Australia, and also the UK market.

And certainly with the UK, the game is far from over.

I still feel confident, very confident, that once we get this behind us, then this organisation will move onto bigger and better things.

In its core franchise, it's been commercial banking and wealth management.

ALAN KOHLER: How likely is National Bank now to be taken seriously in the UK, having made such a major stuff-up in America?

FRANK CICUTTO: Well, we have very valuable franchises, we are a large bank in an Australian context and certainly as I said a moment ago, the game is far from over.

ALAN KOHLER: At the close of business today, the market's confidence in Frank Cicutto is cracked, but not shattered.

It would be fair to say that if he was a cat, Frank Cicutto would be down to eight lives.

HAMISH CARLISLE: I think he's been articulate in terms of communicating his strategy to the market.

I think he's taken some hard decisions but the hard decisions have reflected the strategy and the strategy is still the same as it was prior to this announcement.

ALAN KOHLER: The market's confidence in the management here seems to be shaken.

What are you going to have to do now to win that back?

FRANK CICUTTO: Well certainly to ensure that we put the runs on the board, we get this issue behind us.

I'm pleased to see that the share price is up today, and that's very encouraging.

There is no doubt that we have very valuable franchises both in the UK, in New Zealand and here in Australia.

Our wealth management business is doing very, very well.

So, I'm quite optimistic about the future


Formed in 1858 in Melbourne, National Bank of Australasia (NBA) just missed the peak of the Victoria gold rush. The bank expanded across the territory and was one of the first to lend to farmers and ranchers using land deeds as security. In the late 1870s drought imperiled Victoria. Seeking greener pastures, NBA entered New South Wales in 1885, then headed into Western Australia. Economic instability continued; in 1893 the bank experienced its first panic and was shuttered for eight weeks. NBA reopened only to close a quarter of its branches between 1893 and 1896................The 1980s brought banking deregulation. To vie with foreign banks entering Australia, NBA in 1981 merged with Commercial Banking Co. of Sydney and became the National Commercial Banking Corp. of Australia in 1982. (It took its present name in 1984.) Throughout the 1980s the bank diversified and moved into the US and Japan. It invested in property and made loans to foreign countries. All too quickly, though, property values sank and countries defaulted on loans.

To fight recession, NAB looked abroad for opportunities. In 1987 it bought Clydesdale Bank, Northern Bank, and National Irish Bank from Midland Bank Group (now part of HSBC Holdings). Three years later, NAB bought Yorkshire Bank, then turned the four banks around by linking them and tightening loan operations. In 1992 it bought the troubled Bank of New Zealand, again tightening loan operations. Three years later NAB claimed Michigan National in the US............After the mid-1990s economic recovery, NAB bought HomeSide to try to adapt the US mortgage firm's efficient operations for all its banks

Thank you for rating us your 2014 Major Lender of the Year

We are delighted that, for the third year in a row, NAB/Homeside has been named Major Lender of the Year in The Adviser’s Third Party Banking Report.   This is an important award for us because it’s rated by you, our valued brokers.  Your support and feedback challenges us to give you more of what you want, resulting in us being rated number one overall, and in 12 of the 23 categories surveyed including product range, product competitiveness, BDM support and commission.   NAB Broker is committed to consistent improvement. We value your feedback and actively seek to hear what we’re doing well, but more importantly, where we can continue to improve investors want prompt UK exit


National Australia Bank will continue to underperform the other major banks until it can fix its troubled British operations, and investors are calling on new CEO Andrew Thorburn to sell them soon