A View From Middle England - Conservative with a slight libertarian touch - For Christian charity and traditional belief - Free Enterprise NOT Covert Corporatism

Wednesday, November 07, 2007

Another fine mess!

I still can't believe you can be the CEO of a bank and not know where all the loans your bank grants end up. That is who you sell them on to in these wonderful "repackaging" jobs. Because of the so-called credit crunch, the public is now aware of the dodgy dealings that the banks have been getting up to. Funny that if any small business went into their bank and told the manager breezily "Oh, I can't remember who I've sold to, but I'm sure I will find out in time" they would be marked down with a big black pen in the credit ratings! No such ignominy for the blustering bank officials themselves.

Jenna from Houston, Texas, tells the BBC Online "I am a loan officer working in sub-prime lending. At the present time, I am looking for a job in other industries as we are facing a 20% reduction in our company. I have learned that lending to people with spotty credit and the promotion of ARMs was not the best of ideas. I am thankful that I was always quick to dissuade borrowers from ARMs, as I had my reservations about them even two years ago. Encouraging 100% financing with ARMs is a recipe for disaster, as proven by the hike in foreclosures on homes this year."

Charles Prince, otherwise known as Chuck, has just resigned from being Chairman and CEO of Citibank/Citicorp. What was he thinking over the last two years. That it was all fine and dandy selling loans and mortgages to people with "spotty credit"? Did he have any reservations, like Jenna? It really does defy belief! And we could all fall foul of this nonsense. I hope Chuck doesn't get more than ten cents in payoff!

The late great British comedian Tony Hancock, in the "Blood Donor" takes umbrage at the tone of the doctor about to take some of his blood. "I didn't come here to be insulted by a legalised vampire!" he intones, feeling that the doctor has not taken sufficient interest in this momentous act of selfless giving.

It would seem that in the financial world we now have been insulted by legalised fraudsters, quite able to offer the unsuspecting, the less capable, and the downright gullible all kinds of dodgy deals. Or at least they did. Hopefully the game is up. But no prison walls beckon, though. This has all been allowed to happen by a nod and a wink from the powers that be.

It can only get better, folks!


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