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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: RAMS and KINGHORN - historical look back in time as we assist 00's of victims of RAMS and RHG

Posted by on in Bankers A Law Unto Themselves
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 http://www.crikey.com.au/2010/12/09/bartholomeusz-cbas-competition-confession/

 If they haven’t already, the members of the Senate committee should ask RAMS Home Loans founder John Kinghorn to appear before it to explain why RAMS, followed subsequently by most of the non-bank lenders, hit a brick wall and effectively collapsed at the very onset of the financial crisis.  RAMS was the first of the big non-bank lenders to be overwhelmed by the crisis because it had an unusually high — dangerously high, it transpired — reliance on very short-term funding. To a lesser degree, most of the non-bank lenders were also borrowing short in wholesale markets and also accessing securitised debt markets.  In its submission to the inquiry, lodged on Friday, Commonwealth Bank admitted that the major banks were also sourcing a growing share of their funding from those same markets before the crisis — in CBA’s case almost 30% of its funding in October 2007 came from short term wholesale markets, compared with about 18% today.............

That’s a critical point that is almost always over-looked in discussions about the state of competition in banking markets. Pre-crisis credit generally was unsustainably cheap — risk was being badly mis-priced — and there was, therefore, a level of competition from non-banks that was also unsustainable, and self-evidently wasn’t sustained.  Efforts to recreate, with government/taxpayer assistance, the same intensity of competition that existed in the lead-up to the crisis are therefore misconceived and potentially threatening to the stability of the system...................The Senate committee — and Wayne Swan and Joe Hockey — need to be reminded that while competition in banking is a good thing, too much competition can destabilise the system, particularly if it is driven by a cost of funding that under-prices risk or by incentives that unduly distort the normal functioning and competitive balance of the system.  That’s why they should talk to John Kinghorn, the veteran of the non-bank sector, or the shareholders in RAMS who saw their company implode only months after it floated.

 

 http://www.smh.com.au/nsw/businessmen-fear-worst-in-icac-inquiry-says-lawyer-20130221-2euaa.html

February 22, 2013  Kate McClymont

 SOME of the nation's wealthiest businessmen are concerned a corruption inquiry might make findings of serious misconduct against them, including possible allegations of criminal conduct, their barrister told a Sydney court.  Multimillionaire car dealer Neville Crichton and his eastern suburbs property developing mate Denis O'Neil are suing Cascade Coal directors and a raft of other people who have featured in a sensational corruption inquiry.  The pair invested in Cascade Coal in November 2010, later discovering their $13 million investment had ended up in the coffers of the family of Labor kingpin Eddie Obeid.  Cascade has been at the centre of an Independent Commission Against Corruption inquiry.  Cascade, controlled by wealthy business figures including John McGuigan, John Atkinson and John Kinghorn, as well as mining magnate Travers Duncan, is alleged to have won a rigged government coal tender for Mount Penny in the Bylong Valley which covered several properties owned by the Obeids and their associates. The Obeids obtained a secret 25 per cent share of Cascade.............

Read more: http://www.smh.com.au/nsw/businessmen-fear-worst-in-icac-inquiry-says-lawyer-20130221-2euaa.html#ixzz2zFC0zkTL <http://www.smh.com.au/nsw/businessmen-fear-worst-in-icac-inquiry-says-lawyer-20130221-2euaa.html#ixzz2zFC0zkTL>

 http://www.brw.com.au/p/lists/rich-200/2013/john_kinghorn_G6AqnR1pJsNTjAlokZYUnK

 137. John Kinghorn  Published 22 May 2013

 *     LAST YEAR: $395 MILLION

*     SERVICES (FINANCE)

*     SYDNEY

*     71. MARRIED, THREE CHILDREN

 John Kinghorn reaped a $650 million fortune listing Rams Home Loans in 2007 on the eve of the financial crisis. He’s been looking for ways to spend it ever since. A flirtation with the NSW coalfields has eaten away at Kinghorn’s value.   Stakes in Cascade Coal and White Energy have been costly. His $75 million investment in White Energy is now worth only $4.6 million. In 2012, Kinghorn, as a director of both companies, found himself answering questions at the NSW Independent Commission Against Corruption about the proposed takeover of Cascade Coal by White Energy. He put nearly half of his Rams windfall into the $300 million Kinghorn Foundation in 2007.  The foundation gives away $15 million a year. A $25 million donation to the medical research-focused Garvan Institute resulted in the opening last year of the Kinghorn Cancer Centre at St Vincent’s Hospital in Sydney. It’s been a mixed 12 months for Kinghorn.   His great friend and business partner David Coe died suddenly earlier this year. Rams was spun off in 1995 from the Allco Finance Group, which Kinghorn founded in 1979 with Coe.

  

http://www.watoday.com.au/nsw/involvement-of-obeids-in-company-was-hushed-up-20130729-2qv2g.html

July 30, 2013

 Involvement of Obeids in company was hushed up

 When John McGuigan was repeatedly asked whether he was ''after the shortest route to the biggest pot of money'', he should have known the Independent Commission Against Corruption already knew the answer.  What the ICAC was referring to was a taped conversation about the potential windfall of $60 million each for the group of mates.  Known as the Magnificent Seven, the men had invested in a private coal mining company, Cascade Coal, which had won a government coal tender in 2009.  The seven included Brian Flannery, Travers Duncan, former Baker & McKenzie partners Mr McGuigan and John Atkinson, boutique merchant banker Richard Poole and former RAMS Home Loans founder John Kinghorn ............

 Also hidden in the consortium was mate to all - Greg Jones. ''I know him as well as I know my wife,'' growled the feisty Mr Kinghorn in the witness box.  But Mr Kinghorn denied holding Cascade shares on Mr Jones' behalf to hide his involvement. ''Utter, utter tripe,'' he stormed at the suggestion he was doing that because of Mr Jones' close association with then mining minister Ian Macdonald, whose department was handling the granting of the coal exploration licences.........The inquiry heard that the big payday for the seven was to come in early 2011, when Cascade offered to share the spoils of its mining licence - for which it had paid only $1 million - by selling its only asset, the Mount Penny licence, to the stock exchange-listed White Energy.  Five Cascade investors, Mr McGuigan, Mr Flannery, Mr Duncan, Mr Atkinson and Mr Kinghorn, were also on the board of White Energy.  The inquiry heard none of the five chose to reveal to White Energy that the Obeids owned a quarter of Cascade. Knowledge of their involvement was likely to cause the government to cancel the licence and to order an inquiry, which would render Cascade worthless.

 Read more: http://www.smh.com.au/nsw/involvement-of-obeids-in-company-was-hushed-up-20130729-2qv2g.html#ixzz2zF1j9kus <http://www.smh.com.au/nsw/involvement-of-obeids-in-company-was-hushed-up-20130729-2qv2g.html#ixzz2zF1j9kus>

 http://www.theaustralian.com.au/business/companies/kinghorn-quits-white-after-icac-finding/story-fn91v9q3-1226691691120

 Kinghorn quits White after ICAC finding

 *     by:LEO SHANAHAN  From:The Australian <http://www.theaustralian.com.au/>

*     August 06, 2013

 ONE of Australia's most prominent businessmen, John Kinghorn, has resigned from the board of White Energy following a corruption finding against him by the NSW Independent Commission Against Corruption.  Mr Kinghorn announced yesterday he would resign from his position as a non-executive director of the junior miner after the finding by ICAC that he acted corruptly by failing to disclose the involvement of Eddie Obeid and his family in Cascade Coal's purchase of the Mt Penny mining tenement in the NSW Hunter Valley................ICAC also recommended that criminal charges be pursued by the Director of Public Prosecutions and the Australian Securities & Investment Commission against Mr Kinghorn and Mr Duncan............Mr Kinghorn has denied any wrongdoing, saying in a statement last week that he "rejects the commission's comments and conclusions as they relate to him. He has today instructed his lawyers to co-operate fully should there be any investigation by the corporate regulator."  Mr Kinghorn floated the RAMS home loan business for $650m in 2007.

 

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