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Liebor scandal may have cost families their home
HAMISH_MCTAVISH
Posts: 28,592 Forumite
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9371150/Libor-scandal-may-have-cost-families-their-homes.htmlGrant Shapps said that the scandal may have been a “contributory factor” in some home repossessions following the credit crisis.
The Housing Minister issued the warning as David Cameron and George Osborne announced a fast-track Parliamentary inquiry into the behaviour and culture of Britain’s banks.
Asked yesterday whether the scandal may have contributed to people having their homes repossessed, Mr Shapps said: “All the research into homelessness proves that there are a lot of different causes, of which the Libor rate may have [been] a contributory factor, if indeed it transpires that mortgage rates have been adjusted as a result.”
Ooooops.
The bankers have just lost their political cover.
That was careless of them.
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
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Comments
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I find this extremely hard to believe.
I understand it would be great for any government to suggest the repo's were the banks fault due to this, but really, its taking it a bit far.
The fiddling of the figures would have had a miniscule effect on mortgages, and indeed, the evidence would actually suggest it would have made mortgages slightly cheaper if anything.
For this fiddling to have led someone to reposession.....well, the person would have been repo'd over what, a couple of quid? Come on Hamish, even you can't be seriously believing this, when you have told us so many times people will cope just fine when interest rates rise.
If Shapps honestly thinks this, he needs to be shown the door. It's just embarrasing. I've thought he's just a puppet nodding in agreement to every single sector of the housing arena before now and have said so on a few occasions, but this just takes the buscuit.0 -
LIEBOR scandal ate my hamster. LIEBOR scandal found on the moon. Bore off.0
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Another minister opening mouth before engaging brain and inserting foot in it."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Graham_Devon wrote: »Come on Hamish, even you can't be seriously believing this, .
That isn't the point...
This is about the politicians turning on the bankers.
Until now there has been a stalemate, a Mexican stand-off, between the politicians and the bankers.
The Tories know they can't get re-elected without lending increasing. They also know there is immense public anger building at the bankers refusal to lend into the economy.
But they've not really had the leverage they needed to force the banks to stop profiteering and lend, lend, lend.
That has now very much changed......
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
God I love the smell of leverage in the morning.......
Smells like...... Victory.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
I don't think they're talking about a petting zoo.....
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
If the politicians are trying to corner the banks, why would that suddenly get them to start lending. If its true that the inter-bank lending has failed since 2007/8, the buffers of liquidity that they're hold may very well prove to be inadequate. If the banks no long have enough faith to lend to each other they have to hold cut their leverage which will further delay a return to higher levels of credit availability for the housing market.0
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Losing_the_way wrote: »If the politicians are trying to corner the banks, why would that suddenly get them to start lending. If its true that the inter-bank lending has failed since 2007/8, the buffers of liquidity that they're hold may very well prove to be inadequate. If the banks no long have enough faith to lend to each other they have to hold cut their leverage which will further delay a return to higher levels of credit availability for the housing market.
The banks have been told to reduce their liquidity buffers as they have far more than is required.
They're hoarding cash.
Which makes perfect sense, if you're trying to maintain high margins on low volumes, rather than low margins on high volumes.
http://www.independent.co.uk/news/business/news/king-orders-banks-stop-hoarding-and-start-lending-7900005.htmlKing orders banks: Stop hoarding and start lending
Lenders urged to reduce their cash reserves and make more credit available.
The report estimates banks are holding about £500bn in liquidity buffers. Andrew Haldane, executive director for financial stability at the Bank, pointed out that this is more than three times the size of the stock of lending to the UK's small and medium-sized firms. If the UK's banks were to run down these reserves down by 20-30 per cent it would release £100bn to £150bn for additional lending.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »The banks have been told to reduce their liquidity buffers as they have far more than is required.
They're hoarding cash.
Which makes perfect sense, if you're trying to maintain high margins on low volumes, rather than low margins on high volumes.
http://www.independent.co.uk/news/business/news/king-orders-banks-stop-hoarding-and-start-lending-7900005.html
Lenders urged - that will do it then, not forgetting that a load of it is state controlled/owned money.
We must not forget the money they will need to put aside for all the potential stateside litigation and claims.
And for those not state controlled/owned it would be nice to see some dividends returned to investors risking their cash.
A previous graph you supplied suggested the spread had not reduced following the the reduction in base rates to all time lows so why not increase base rate and help out some hard pressed savers too."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »the money they will need to put aside for all the potential stateside litigation and claims.
Firewalled subsidiaries.
They have more to fear from extradition and spending a few decades in an American jail though....
The Yanks take the whole market rigging game far more seriously.And for those not state controlled/owned it would be nice to see some dividends returned to investors risking their cash.
No, just the opposite. Banks need to build capital, not liquidity.
What should happen is no bonuses/dividends for a number of years while the capital buffers are built, and then they can lend far more for the next cycle. Which will be required.A previous graph you supplied suggested the spread had not reduced following the the reduction in base rates to all time lows so why not increase base rate and help out some hard pressed savers too.
Eh?
Why not have the banks reduce their record high margins by raising savings rates while keeping mortgage rates the same. That way everyone wins..... Except the bankers.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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