Reply to: So was the 2nd World War all for nothing?

[AtW]

"Ex-heads of Fannie and Freddie sued by US regulator over sub-prime exposure

Daniel Mudd, who ran Fannie Mae between 2005 and 2008, and Richard Syron, who headed Freddie Mac between 2003 and 2008, were among six senior former executives of the lenders sued in a New York court by the Securities and Exchange Commission.

Fannie Mae and Freddie Mac, which were created to help promote home ownership in the US, were bailed out by the US taxpayer in 2008 after the value of their holdings of mortgage debt collapsed. Together they've received almost $170bn (£109bn) of taxpayers' funds and are now under government control.

"Fannie Mae and Freddie Mac executives told the world that their sub-prime exposure was substantially smaller than it really was," said Robert Khuzami, head of the SEC's enforcement division. "These material misstatements occurred during a time of acute investor interest in financial institutions' exposure to sub-prime loans," he said.

The SEC alleges that executives at Fannie Mae made misleading statements between November 2006 and August 2008. At Freddie Mac, the alleged misrepresentations occurred between March 2007 and August 2008. Both lenders have agreed to co-operate with the investigation into their former executives. "

More from the source: Ex-heads of Fannie and Freddie sued by US regulator over sub-prime exposure - Telegraph

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IANAL but based on requirement of company directors to know their liabilities and true position at any time plenty of UK bank execs should be spending this Xmas in jail.

[darmstadt]

Yep.

[AtW]

I have to agree with you

[Paddy]

Money typically exchanged via simple retail banking - that banking I support and I think all banks should stick only to these simple things that were typical for banks.

It's not rocket science you know - even in Knight Templar times they were able to transfer money, they did so well that the Govt did a reverse-bailout on them.

Should I repeat to you that I have no problems with banks doing actual payments quickly and without big expense? That's what banks should do, but they should not be investing savers money into AAA subprime tulip in foreign country just to make extra 1%-tage profit.

Perhaps there should be just one Govt funded non-profit money clearing house where every taxpayer should have an account and only payments made through that clearing house are legitimate. With all accounts in one place in a non-profit it would make it very efficient and safe money exchange mechanism.

I have to agree with you

[AtW]

So how is the money collated and transacted? And did those "well off people" make their money by trading sheep for spears?

Money typically exchanged via simple retail banking - that banking I support and I think all banks should stick only to these simple things that were typical for banks.

It's not rocket science you know - even in Knight Templar times they were able to transfer money, they did so well that the Govt did a reverse-bailout on them.

Should I repeat to you that I have no problems with banks doing actual payments quickly and without big expense? That's what banks should do, but they should not be investing savers money into AAA subprime tulip in foreign country just to make extra 1%-tage profit.

Perhaps there should be just one Govt funded non-profit money clearing house where every taxpayer should have an account and only payments made through that clearing house are legitimate. With all accounts in one place in a non-profit it would make it very efficient and safe money exchange mechanism.

[DodgyAgent]

I would have thought you knew how VCs get their money, what edukation did you have again?

In this country people who are often called "VCs" borrow money from banks and other places to make leveraged buyouts of companies and then run them into the ground.

That's not how proper VCs work that made Silicon Valley possible.

Proper VCs are made of well off people who earned their money and they are prepared to put their money into the VC pot to make proper investments in companies to fund their growth.

Proper VCs don't borrow from banks as a loan instead they will have their own shareholder capital if you like that gets invested.

This is why I have no problem with those VCs - if they go bust completely it's just their shareholders who lost and taxpayers and others are not affected.

Did you even hear of a proper VC bailed out by Govt recently? I have not.

So how is the money collated and transacted? And did those "well off people" make their money by trading sheep for spears?

[AtW]

And how do VCs get their money? By working in a field and swapping some sheep for a PC?

I would have thought you knew how VCs get their money, what edukation did you have again?

In this country people who are often called "VCs" borrow money from banks and other places to make leveraged buyouts of companies and then run them into the ground.

That's not how proper VCs work that made Silicon Valley possible.

Proper VCs are made of well off people who earned their money (by selling their companies in trade sales or IPOs) and they are prepared to put their money into the VC pot to make proper investments in companies to fund their growth.

Proper VCs don't borrow from banks as a loan instead they will have their own shareholder capital if you like that gets invested.

This is why I have no problem with those VCs - if they go bust completely it's just their shareholders who lost and taxpayers and others are not affected.

Did you even hear of a proper VC bailed out by Govt recently? I have not.

[DodgyAgent]

Boll0x.

got financed by VCs.

Banks should stick to boring stuff like payment processing (don't have problem with it), taking good care of money entrusted to them by savers and give reasonably priced safe loans and mortgages.

That's it - none of this "investment" bull tulip, none of borrowing money from other banks especially from other counties, and none of the investment in foreign countries unless it is to support local company expanding there.

And how do VCs get their money? By working in a field and swapping some sheep for a PC?

[AtW]

If there were no banks there would be no google

Boll0x. Google got financed by VCs.

If you use Google to commit a crime then you will be held responsible for it.

People who fraud using banks also responsible for their actions.

The banks themselves however do not appear to be responsible at all - especially with other people's money!

Banks should stick to boring stuff like payment processing (don't have problem with it), taking good care of money entrusted to them by savers and give reasonably priced safe loans and mortgages.

That's it - none of this "investment" bull tulip, none of borrowing money from other banks especially from other counties, and none of the investment in foreign countries unless it is to support local company expanding there.

[DodgyAgent]

Yes of course and far more negative in effect - allowed a lot of people search for information like it wasn't possible just 10 years ago.

What did banks improve so much in 10 years? I would not have cared about their profits if they did not cause prices of oil, steel, wheat and other materials go through the roof, nevermind house prices that would have never gone up so high if it wasn't for lax lending policies.

If there were no banks there would be no google. If there were no banks there wouldnt even be an internet. The existence of banks is the core of progress and business. The real threat is the use of technology as wielded by google. I can go on to Google and see what houses to burgle. I can come on to sites like this and insult people. I can seduce small children as a paedo. I can incite riots.

Spare us the hypocrisy

[AtW]

So a bank is more global than google?

Yes of course and far more negative in effect - Google allowed a lot of people search for information like it wasn't possible just 10 years ago.

What did banks improve so much in 10 years? I would not have cared about their profits if they did not cause prices of oil, steel, wheat and other materials go through the roof, nevermind house prices that would have never gone up so high if it wasn't for lax lending policies.

[DodgyAgent]

No, they are not but banks are far more global and their actions affect prices of commodities like oil, wheat, metals etc.

The Govt should deal with the banks.

Leave to me

So a bank is more global than google? Someone living in the jungle in Burma has more access to a branch of TSB than they do of logging on to Google?

Google is big brother. It is intrusive and holds immeasurable power to control people in a way that banks could never do.

You do talk a load of bo**ocks. It is the intrusiveness of technology that we should worry about not the banks.

[doodab]

Leave Google to me

Go get em tiger!

[AtW]

They are not the only ones abusing their power are they?

TripAdvisor: Google abusing its power with Google Places | Tnooz

No, they are not but banks are far more global and their actions affect prices of commodities like oil, wheat, metals etc.

The Govt should deal with the banks.

Leave Google to me

[DodgyAgent]

Breaking news:

"Citigroup, UBS penalised for Japan rate manipulation

(AFP) – 5 hours ago

TOKYO — Japanese regulators Friday ordered the local arms of Citigroup and UBS to suspend operations for up to 30 days for allegedly trying to manipulate short-term interest rates for interbank trading.

The penalty came after former staff at UBS Securities Japan and Citigroup Global Markets Japan were accused of trying to gain an unfair advantage for their firms through interest rate manipulation.

The Securities and Exchange Surveillance Commission said last week that a British trader with UBS Securities Japan had asked banks participating in the Tokyo interbank offered rate, or Tibor, to offer rates that would help his derivative transactions.

He also allegedly made similar moves related to the London interbank offered rate or Libor, it added.

The rates are the average interest rate that major banks in Tokyo and London charge for interbank lending, and are widely used as benchmark rates for other loans such as corporate borrowing.

The man later moved to Citigroup Global Markets Japan, where he allegedly conspired with his superior in similar moves aimed at benefiting their derivative transactions, the commission said.

The actions were "acknowledged to be seriously unjust and malicious, and could undermine the fairness of the markets", the Financial Services Agency said, as it ordered the firms' suspension.

The suspension will start January 10, the agency said."

Source: Citigroup, UBS penalised for Japan rate manipulation - FRANCE 24

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Good start.

They are not the only ones abusing their power are they?

TripAdvisor: Google abusing its power with Google Places | Tnooz