BFCSA Blog

Liar loans: How mortgage fraud helped trigger the GFC DateFebruary 13, 2015 Read later Binyamin Appelbaum     inShare submit to reddit Email article Print   Low-income homebuyers borrowed more than they could afford - helped by the lenders' "art departments" fudging their wage statements. Photo: Ronda Churchill The global financial crisis was caused in part by widespread fraud, which may seem like an obvious point. But it remains surprisingly controversial. US President Barack Obama and other public officials, seeking to explain why so few people have gone to jail, have argued in recent years that much of what happened on Wall Street in the go-go years before the crisis was reprehensible but, alas, legal. You will not be surprised to learn that many financial executives share this view - at least the part about the legality of their actions - and that a fair number of academics have come forward to...

Latest TALLY # 2005 PETITIONERS Yes it’s your turn to become involved.  Let it never be said we sit on the sidelines…………….whilst your homes and savings disappear.  Please sign our PETITION for Royal Commission into Australian Banks non Banks and Collapsed Companies. TALLY: 2005 This is the link and thank you for support as this is sorely needed and long overdue   https://www.change.org/p/mr-david-murray-chairman-of-the-financial-system-inquiry-recommend-an-urgent-royal-commission-into-australian-banks-australian-non-banks-collapsed-companies-the-regulators-asic-apra-and-all-subsidiaries-and-joint-partners    ...

http://www.crikey.com.au/2014/08/01/the-next-subprime-mortgage-crisis-in-the-making/ The next subprime mortgage crisis in the making Paddy Manning|Aug 01, 2014   We’re not as immune from the mortgage lending laws that triggered the Global Financial Crisis as we might think!  It is a bit of myth that Australia dodged the global financial crisis because we had tougher lending standards than the United States, where ticking-bomb subprime mortgages were packaged up into toxic derivatives like collateralised debt obligations, slapped up with dodgy AAA credit ratings and on-sold to financial institutions investors all over the world...............   Swept under the carpet in Australia during the GFC was the prevalence of loan application fraud, a form of predatory lending that consumer advocate Denise Brailey has been campaigning to expose for years.  The transfer of responsibility for consumer credit laws was transferred to the Commonwealth under the National Credit Act 2010, with the Australian Securities and Investments Commission taking over regulatory responsibilty....

http://www.icenews.is/2014/07/13/former-kaupthing-bosses-charged-with-fraud/ Former Kaupthing bosses charged with fraud Business, Finance, Iceland 10:24 am July 13, 2014   The former chief executive and chief financial officers of Kaupthing have been charged with fraud and breach of trust by Iceland’s special prosecutor. According to the indictment, Hreidar Sigurdsson and Gudny Sveinsdottir, the CEO and CFO respectively, have been charged with fraud linked to financial transactions carried out in 2007. Kaupthing Luxembourg’s managing director Magnus Gudmundsson and investor Skuli Thorvaldsson have also been charged for their roles in the alleged crimes. The North Atlantic island’s three biggest banks collapsed in 2008 amid the global financial crisis and the special prosecutor has been pursuing cases against a number of former employees of the three banks for the roles they played in the crisis. The alleged fraud is linked to a 6bn Icelandic kronor transfer from Kaupthing to Marple Holdings, which is owned by Thorvaldsson, and Kaupthing’s...

 The Banks were spruiking business in all directions with ZERO REGARD FOR RISK.  Time for Banks to stop putting profit before people. http://www.fkfc.com.au/anzs-mortgage-introducer-program/ ANZ’s Mortgage Introducer Program December 2012 Forest Killarney Football Club (FKFC) has entered into an association with ANZ to allow us to start introducing potential customers to Australia’s most awarded home lender*. Mortgage Introducer Program is a way ANZ reward businesses or community organisations for referring customers. As an ANZ Mortgage Introducer, Whats in it for Forest Killarney Football Club? FKFC can earn an upfront commission for every customer we refer who takes out a new ANZ Loan. FKFC could earn additional fundraising income by introducing potential customers to ANZ’s home loans*. ANZ offers an up front commission for successful customer referrals. Which means FKFC could benefit from additional revenue streams to supplement funding for club activities and programs. How it works Referring a customer to ANZ is...

Inquiry to look at bank debt guarantee BY EVAN SCHWARTENMay 1, 2014, 8:59 pm Twitter G+ AAPAn inquiry will look at whether a debt guarantee for the big four banks has distorted the market.     The head of an inquiry into Australia's financial system says government backing of the big four banks during the global financial crisis may have given them an unfair advantage over smaller rivals. Small lenders and the Department of Treasury have argued the wholesale debt guarantee for major banks helped to create an unfair playing field and allowed the big four to access funds more cheaply. The chief of the federal government's financial system inquiry, David Murray, says there remains a perception Commonwealth Bank, ANZ, Westpac and National Australia Bank are too big to fail. "The perception of the government as a backstop may provide competitive advantages for some and can distort prices at the same...