Organised Crime, the Mafia and the Credit Crunch

[Tony*T3]

Over the last few years a couple of indeviduals have been held to account for losing Hundreds of Million when really bad investements have gone wrong. Nick Leeson and that French chap for instance.

Now that it seems the banks and the credit reference agencies have lost a whole heap mre, and we, the rather skint taxpayer, are expected to bail them out and cover 'toxic debts'.

So where is the Police investigation, the public enquiry, nay the witch hunt for those 'to blame'?

Its just too easy to say that 'its the governments fault' or ' its the fault of the fecless borrowers'.

Something stinks or gross imcopetance or organised theft and deception.

[nonplussed]

I guess the simple answer to this is that, unlikely as it may sound, to a large extent the banks don't know who the individual defaulters are. I think that's one of the inherent problems of the current situation, because of the extensive slicing and re-selling of debt. I may of course be talking compelte bks

[Tony*T3]

So who are all these defaulters? Only a few thousand people a year are defaulting in the UK - although I'm sure it'll go through the roof over the next 24 months. But I dont know anyone whoose been repo'ed.

Equally, how can a sub section of American mortgage defaulters really cause all this pain over here without someone being guilty of fraud?

Edited by Tony*T3 on Monday 19th January 10:56

[Hedders]

Tony*T3 said:

Equally, how can a sub section of American mortgage defaulters really cause all this pain over here without someone being guilty of fraud?

It may be something to do with the mortgage system over there. If i understand it correctly, when they default on a mortgage, the whole debt is just written off. It only takes three or four average families to get in trouble and the bank has lost $1m.

Or i could be way off, and it is nothing to do with the bad mortgages!

[BMWBen]

Tony*T3 said:

So who are all these defaulters? Only a few thousand people a year are defaulting in the UK - although I'm sure it'll go through the roof over the next 24 months. But I dont know anyone whoose been repo'ed.

Equally, how can a sub section of American mortgage defaulters really cause all this pain over here without someone being guilty of fraud?

Edited by Tony*T3 on Monday 19th January 10:56

I don't think it's that everyone is currently defaulting, but that the banks have been unable to sell the dodgy bits of their securitised debt to anyone on the outside. People have now realised this, so those securities are now pretty much worthless and it's the banks that hold them.

These securities had previously been given high values, which has meant that the banks have had pumped up balance sheets allowing them to churn even more money around. Now that they are worthless there's a bit of a hole, and the banks need to scale back.

I may of course be wrong.

Edited by BMWBen on Monday 19th January 12:51