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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: Our $280 Billion Australian Banking Problem, hidden in the closet. You do the Maths

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In response to comment on SMH 24 October, 2013  I felt I should explain the "warranted panic, for our Banking Industry."  The fraudulent loans are only a sample of the overall market of $57 Billion worth of Lo Doc loans.  The average loans with buffers and top ups by greedy banks now average out at $600K per loan.  But let us lower it to say half a million dollars per loan.  It means we have uncovered $400 million dollar fraud cases so far and not one clean loan amongst them. 

These loans were all processed by Skippy the Computer with credit assessors ticking boxes, phoning no-one, verifying nothing other than an A1 credit rating (ie mostly pensioners and low income families enjoy an A1).  In fact insiders tell us that no loan was rejected as long as the hapless victims had an asset - their only asset - their home: ARIPs.......asset rich and income poor, form the predatory tactics that banks used to reel in their prey which is both sickening and frightening.  IF the same process was used on every loan and we have more than enough evidence now to suggest that is precisely the situation, then the entire $57 Billion worth of loans are also TOXIC.  But what about 18% of the $1.28 Trillion mortgage market of FULL DOC LOANS being TOXIC? 

Does that figure scare anyone into wanting to have a closer look? 

A Sub Prime Scandal is on the horizon....we can see the smoke signals................around $230 Billion worth in Full Doc Loans

The mathematical problem is the 'what ifs' and that is precisely the banking condition that all Australians should be concerned with.  You see, 100% of the loans we have looked at so far are TOXIC in two ways:  one they were 100% unaffordable at the point of signing and two they were all tainted with fraud and forgery via the use of the service calculator as standard industry practice.  That would seem to me that if all are tainted as we expect IS THE CASE, then we have a mere $57 Billion problem.  Yes that is small petty cash to the size of the American Nightmare on Wall Street, however, their population is around 320 million people and we number 23 million.  Proportionately it follows, that our problem could be larger than the American Banking system per head of population.

We all need to focus on these sums in terms of our children when we have to explain how we dumped the next generations into such a mountain of debt!   There is another small statistic that also comes into play from our extensive five year research.  18% of these loans are FULL DOCS and no broker involved .  The Australian Mortgage Market sits at $1.28 Trillion according to the Reserve Bank of Australia and APRA.  Neither of these regulators are looking too flash right now in the credibility stakes. 

Now try this piece of propaganda from the Banks: "we have the most profitable banks in the world."  I receive calls from American fund managers from time to time.  They say: "we knew Australian banks were using the same techniques as we were (sub prime), we just could not figure out how they could keep going so long after the GFC."   Well now you your own maths.    Remember the entire scam was run by computers, so banks can say: "it was all a misunderstanding and a computer glitch."  

The Savings and Loans Scandal unravelled when the key links were discovered by a small time reporter in a back water town in America....he did the maths and after four years of banging on a couple of main stream reporters took him seriously.  In the 80's it cost Americans $4000 per man woman and child to get out of the mess................................"  A lot of money 45 years ago!  It costs the US Government 10 years to investigate and trillions of dollars to extricate themselves from the fall out.

Yet the S & L Scandal morphed into Low Docs 8 years see the game played on.  No-one in Government had the courage to jail the offenders that held the country for ransom for over two decades.  The Mister Big of the S & L skipped the country and yes indeedy...landed in Australia in 1988.  Well I'll be......................................and I wonder how much the banks paid the service calculator inventor and also the genius who thought up the broker channel to force mortgage brokers to take the rap?

How did they ensnare each of the Brokers?   Yes commissions, but they taught them to practice on their parent's assets.  Brokers were persuaded by Bank BDMs they were helping people!  Are we saying the world fell for this trickery but we Aussies were too smart and it hasn't affected us?  OR are we saying Australia has yet to wake up to what the Bankster have been up to.  Our banks are 30% - 48% owned by America.......or so it seems looking at the shareholder registers.....................of course we followed the same lucrative scams:  stealing people's homes by preying on ARIPs.  

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I noticed this comment from the SMH story by Michael West Watchdog asleep On Australian Sub Prime Scandal  24 October 2013

"There's an unwarranted panic here. It would seem that the "fraudulent" loans are only a small proportion of the total. The 800 loans mentioned represent a total of about $320M and even if they all defaulted they are not going to bring down the banking system. Comparing it to the US sub-prime scandal is ridiculous.

The ones who suffer are the individuals who were encouraged via this wonderful "Service Calculator", to take out loans that they could not in reality service. For that, the banks should be liable.

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  • doyla66
    doyla66 Monday, 28 October 2013

    "The 800 loans mentioned represent a total of about $320M and even if they all defaulted they are not going to bring down the banking system"..
    In answer to the above snippet...
    WHAT ABOUT the THOUSANDS of TOXIC loans out there. The PUBLIC haven't got a clue (YET) that their mortgages may be fraudulent also.
    BFCSA is getting the word out there in the main stream ...

  • doyla66
    doyla66 Tuesday, 29 October 2013

    Alittle food for thought

    If as in the SMH article at the weekend there is only 800 toxic loans a total of only around $320M wouldn't the Banks just pay them out and get rid of the the bad publicity. Well there would be a perfectly good reason why they don't, they could look wonderful and come out smelling of roses if they said it was a computer or staff errors. But if they set a precedent while trying to pull the wool over the eyes of the greater public when the real reason is exposed, that it was deliberate FRAUD used to make the GREATEST AUSTRALIAN ASSET GRAB OF ALL TIME then the smell of roses will turn to manure. I can't believe that so many people, including politicians and journalists, can not see how far reaching this issue is and that people still believe that OK it happened in America but it can't happen here the same. There is not one trend to come out of America in the past 20 years that Australia has not followed. We long ago stopped following the British way and adopted the American lead. Look how well their economy is travelling and we really believe we are at arms length of their mess!!!!!!!!. Lets stop kidding ourselves Aussies, and realise we have this problem right up to our necks and the only way to right the wrongs is to make our Banks stand to account. Make them pay back what they have stolen from decent people and tighten regulation. Where the buck will stop will be at the top of the Banking chain and those responsible should be treated the same way as any common criminal and incarcerated as thieves (white collar crime is CRIME please take not Australian Federal Police). The mere fact that American Banks own 30 - 48% of our Banks was always going to make us susceptible to patterns of criminal white collar FRAUD making its way to our shores.
    So Aussies, lets take a very grown up approach to the fact that we play on the big boys stage as well these days and we can no longer believe it won't happen to us because we are too far removed from the rest of the world.
    The world gets smaller every day with the technology available to us and that makes us the very same target as any other corner of the world as never before. Lets hope that our systems of regulation and accountability can show the rest of the world how to Police all kinds of criminal activity starting with the top end of town that sends the clearest of messages no one is exempt.

  • doyla66
    doyla66 Sunday, 03 November 2013


    Just started on this journey - latest info from GE Money (lender), speak to AFIG (broker) - nothing to do with the Mortgage Manager who has trotted off with a minimum of 6 family's mortgages - with them consequently losing their homes - "AFIG act in good faith with the Mortgage Manager or the borrower in terms of the information provided on Loan Application Forms". "There is no contractual arrangement between the Mortgage Manager and the Broker or the Lender? I don't believe this - surely there is an obligation on the part of the broker to ensure the people who are doing business for them are not crooks perpetrating fraud? Anyway GE Money and AFIG appear to be one and the same for all intents and purposes

  • doyla66
    doyla66 Tuesday, 12 November 2013

    Securitisation just another (JPM) Bank and Finance Weapon of Mass Deception.

    I can't find anywhere that states the Securitisation process is legal in Australia.
    It's not regulated either as far as I can see.
    Nor is it correctly and certifiably classified. It's a dog's breakfast!
    Cooee - ASIC ??
    It seems to be just another one of those dodgy Banking products that ASIC find too hard to regulate! With all their degrees!?
    Heaven help pensioner Nannas and Pops then! Caveat Emptor be damned! No disclosure statements?
    ASIC - This is attrocious!
    Cooee - Australian Government ??
    CFDs and such, Weapons of Mass Financial Destruction?
    Securitisation: Australian Banking's central Weapon of Mass Deception and Illusionary Wealth
    Not ratified in Law: destroys lives and homes when used irresponsibly
    Ring the Bells - Order in the House of Australia
    Regulated it to Death or Ban it entirely!

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