BFCSA Blog

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

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The bribe factory: getting the story   31 March 2016 Michael Bachelard   http://www.smh.com.au/national/how-bribe-factory-unaoil-tried-to-stop-us-telling-their-secrets-20160331-gnutfc.html   The letter arrived via snail mail, and it read like a page from a Le Carre spy thriller. Hear Nick McKenzie recount how he exposed the world's biggest bribery scandal.   Read the full day two expose here    http://www.smh.com.au/interactive/2016/the-bribe-factory/day-2/global-investigation.html The dirty western executives    Australia's Leighton Offshore: dirty dealing in Iraq Big Oil's bribe factory Until the moment Fairfax Media and The Huffington Post hit the publish button at 10pm on Wednesday, AEDT, revealing how the oil industry really works, our investigative team was on tenterhooks.  This was more than simple pre-publication nerves, the questions we invariably ask ourselves about whether we have got it right, and what we had missed in the hundreds of thousands of documents we'd read over the previous months. No, our concern was more specific: that an Australian court, an unsympathetic judge,...
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  • organza
    organza says #
    If I recall correctly Unaoil was a factor in a scandal involving the RBA.
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RBA warns of ‘aggressive expansion’ by foreign lenders Wednesday, 30 March 2016   James Mitchell   http://www.mortgagebusiness.com.au/breaking-news/9603-rba-warns-of-aggressive-expansion-by-foreign-lenders   The Reserve Bank of Australia has issued “a note of caution” over the aggressive expansion of foreign lenders in the local market.  RBA Governor Glenn Stevens told the ASIC Annual Forum in Sydney last week that competition in the business lending space has increased in the last couple of years.  “Overall, this is to be expected and is a welcome development at a time when a missing element of the economic growth story is capital spending outside the mining sector, which appears to remain very weak”, Mr. Stevens said.   The RBA chief said there was a notable trend of foreign banks' “aggressive expansion” in Australia.  “Here there is a note of caution. If these are taking opportunities left on the table where local players (or earlier foreign players) were simply too conservative, all...
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Here too???   Feds may toss out forced arbitration clauses 6 March 2016   http://www.detroitnews.com/story/business/personal-finance/2016/03/06/feds-may-toss-forced-arbitration-clauses/81415152/   If you’ve got a credit card, you’ve been forced to kiss away your constitutional right to sue the card issuer. But it’s looking increasingly likely that this is about to change.  The Consumer Financial Protection Bureau is examining so-called arbitration clauses in terms and conditions for financial products. Earlier this month, the head of the bureau, Richard Cordray, sent the strongest signal yet that the regulatory whip soon will come down on banks and other lenders denying customers their day in court if they feel mistreated. “By inserting an arbitration clause into their contracts, companies can sidestep the legal system, avoid big refunds and continue to pursue profitable practices that may violate the law and harm consumers,” he said in a speech to the American Constitution Society. “Companies should not be able to place themselves...
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  • organza
    organza says #
    Legal trickery always tips the scales in their favour. Note they always should the words may or should or could to disguise the h
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On it goes....... BNY Mellon May Face Suit over $1.12B Loss in RMBS Trusts March 04, 2016 http://www.nasdaq.com/article/bny-mellon-may-face-suit-over-112b-loss-in-rmbs-trusts-cm588532 Legal headwinds pertaining to business malpractices before the 2008 financial crisis continue to haunt The Bank of New York Mellon Corporation.  As per a Manhattan federal judge ruling, the company must face a lawsuit alleging that the bank has failed in its role as a trustee for 5 residential mortgage-backed securities (RMBS) trusts, which caused investors losses worth $1.12 billion. The news was first reported by Reuters. U.S. District Judge Gregory Woods said Belgium's Royal Park Investments SA/NV may pursue claims that BNY Mellon failed to undertake necessary action to push the loan sellers to replace or repurchase the bad loans. The concerned 5 trusts date between 2005 and 2007.  Royal Park, which is seeking class-action status on behalf of other investors, accused BNY Mellon of breaching its duties in part due to...
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  • organza
    organza says #
    Now that's interesting.. to repurchase must mean the bad eggs end up back on the seller books. How do they then remove the stenc
  • Duped
    Duped says #
    Banks cannot get away with their past misconducts. I hope our politicians get the message!!!
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RBA's Luci Ellis has 'no concerns' with apartment settlements Australian Financial Review Mar 18 2016 4:55 PM Su-Lin Tan   The Reserve Bank of Australia says it it not detecting any signs of settlement problems despite industry fears of an apartment glut as a flood of new properties hit the market. The low risk of settlements failure in the face of falling housing values as well as the high level of mortgage offset account savings keep housing conditions stable, the RBA's head of financial stability, Luci Ellis, said during Macquarie University's Financial Risk Day in Sydney.  "The Australian offset account is the most tax-effective form of precautionary saving I have ever seen. Not everyone with a mortgage is ahead of schedule, but many are, and those offset balances are growing rapidly. That makes those borrowers more resilient to shocks and the whole system safer," she said.  The property industry is becoming...
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New rules could force Sydney unit owners to sell 22 December 2015 http://www.realestate.com.au/blog/new-rules-could-force-sydney-unit-owners-to-sell/   In NSW, your title to an apartment or terrace may not be quite as secure as you thought. Until now, developers were required to buy out all owners before being able to terminate a strata scheme and redevelop a building. But under new legislation, developers will only need to acquire 75% of units in a building before the remaining owners can be forced to sell. The new rules have the potential to affect over two million people in Sydney in 75,000 strata and community schemes. In Victoria and Western Australia, similar proposals are being considered by state governments. The amendments to the Strata Titles Act have been welcomed by developers who argue thousands of ageing buildings in Sydney are run down and should be replaced. Chris Johnson, Chief Executive of Urban Taskforce says “In NSW, there are lots of...
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13 ETHICAL OBLIGATIONS AND THE MANAGER: CASE STUDIES by Paul Rogers   http://www.thomsonreuters.com.au/product/AU/files/720502412/chapter_13.2_case_studies.pdf   Case Study: National Australia Bank.............Although the Australian Prudential Regulatory Authority’s (APRA) report into the situation concluded that the losses were due to the collusive behaviour of the traders, it also stated:  “However, it can also be contributed to an operating environment characterised by lax and unquestioned oversight by line management; poor adherence to risk management systems and controls and weaknesses in internal governance procedure” (Buck).  APRA also found that there was an exclusive focus on process and documentation rather than looking at the substance of issues and taking responsibility for them.............In response to this, the National Australia Bank’s CEO made a number of statements on values and culture in NAB’s Concise Annual Report 2004 (http://www.nabgroup.com/vgnmedia/downld/Concise_NAB04.pdf). The fifth paragraph under the heading “Our Strategy” reads:   “A new Board and executive team is committed to leading culture change by example.  A...
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Australian Parliament: House Hansard Monday, 3 March 2003 http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22chamber%2Fhansardr%2F2003-03-03%2F0053%22 Ms JULIE BISHOP (2:31 PM) —My question is addressed to the Treasurer. Would the Treasurer advise the House of the results and significance of Standard and Poor's recent review of Australia's sovereign credit rating? What has been the reaction to this review? Mr COSTELLO (Treasurer) —I thank the honourable member for Curtin for her question. I can inform the House that over the last 17 years—or really over the last 20 years, I suppose I could say, since the election of the Hawke-Keating government in 1983—there have been four movements in Australia's international credit rating. Australia was first downgraded in 1986, by both Moody's and Standard and Poor's. That was the first downgrading of our credit rating. The second movement of our credit rating came in 1989, under the Hawke-Keating government, when we were downgraded again. The third movement came in 2002 where, after...
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So much for regulators and regulation! US forex fraud 'staggering': attorney By Kenneth GilpinNew YorkNovember 21, 2003   http://www.theage.com.au/articles/2003/11/20/1069027253090.html   Forty-seven currency traders were indicted on Wednesday on charges including conspiracy, wire fraud, money laundering and securities fraud. Prosecutors alleged a wide range of crimes at nearly every level of foreign-exchange trading.  The charges involved staff at low-level "boiler-room" operations with fancy-sounding names and at some of the world's largest financial institutions.  They followed an 18-month investigation by undercover Federal Bureau of Investigation agents codenamed "Operation Wooden Nickel".  "There is a staggering array of criminal conduct," said James Comey, US attorney for the southern district of New York. "Today's charges run the gamut of fraud. With more than 1000 victims, from small investors to large banks, the losses are in the millions." FBI agents arrested dozens of people on Tuesday and seized boxes of records from small trading firms such as Madison Deane as well as giants such...
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Why were the Lenders NOT PUNISHED for  APPROVAL OF $170 million worth of loans affecting 560 families?????? Two men behind multi-million home loan fraud operation sentenced by Julia Corderoy | 17 Dec 2015 Australian Broker News Two men behind the multi-million dollar Myra Home Loan home loan fraud have had their sentences handed down in the Victorian County Court. Aizaz Hassan and Mohamed Radhi Maki Ebrahim Ahmed were each sentenced to five year Community Corrections Orders, with special conditions including to undertake 400 hours of community service. Both men had pleaded guilty to one count each of common law conspiracy to defraud. The fraud charge concerned both men’s role at finance broking company, Myra Home Loan Pty Ltd, located in Footscray, Victoria and their involvement in the creation and use of false documents in support of home loan applications. Approximately 600 loan applications were prepared and submitted to a range of...
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Big Banks and Drug Money January 4, 2013 by Helen Redmond http://www.counterpunch.org/2013/01/04/big-banks-and-drug-money/ The illicit drug trade relies heavily on money laundering because it is almost exclusively a cash business. Drug interdiction, while an essential component of attacking the illicit drug trade cannot, standing alone, reverse the tide of illicit drugs. Combating money laundering, combined with strong interdiction efforts, offers a more effective law enforcement response.– Money Laundering in Florida: Report of the Legislative Task Force, 1999 Stuart Gulliver, the Chief Executive of the London-based international banking giant HSBC said: “We accept responsibility for our past mistakes. We have said we are profoundly sorry for them and we do so again… What happened in Mexico and the US is shameful, it’s embarrassing, it’s very painful for all of us in the firm…The HSBC of today is a fundamentally different organization from the one that made those mistakes.”..........  What was Mr. Gulliver apologizing for and...
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Sounds familiar! Bank of Canada not responsible for record debt Central bank governor tells Washington, D.C., audience that borrowers and lenders are '1st line of defence' CBC News Posted: Oct 13, 2015 http://www.cbc.ca/news/business/stephen-poloz-says-bank-of-canada-not-responsible-for-record-debt-1.3268738   It's not the Bank of Canada's job to fix bad decisions consumers make with regard to debt loads in the current low rate environment, Stephen Poloz says.  In his last scheduled public appearance ahead of Monday's election and the central bank's latest interest rate decision on Wednesday, Canada's top central banker told a Washington, D.C., banking audience on Monday that the bank's main job is to fight inflation — not clean up any messes in the consumer debt market. Poloz said the central bank is the last line of defence against "bad decisions" in consumer debt, behind lenders and borrowers themselves and various regulatory bodies. But the bank is keenly aware of the impact its policies can have on the...
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When and when not to vertically integrate - A strategy as risky as vertical integration can only succeed when it is chosen for the right reasons. August 1993 | by John Stuckey and David White   http://www.mckinsey.com/insights/strategy/when_and_when_not_to_vertically_integrate   Vertical integration is a risky strategy—complex, expensive, and hard to reverse. Yet some companies jump into it without an adequate analysis of the risks. This article develops a framework to help managers decide when it is useful to vertically integrate and when it is not. It examines four common reasons to integrate and warns managers against a number of other, spurious reasons. The primary message: don't vertically integrate unless it is absolutely necessary to create or protect value.  Vertical integration can be a highly important strategy, but it is notoriously difficult to implement successfully and—when it turns out to be the wrong strategy—costly to fix. Management's track record on vertical integration decisions is not good..........The fixed asset...
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Inside the Money Laundering Scheme That Citi Overlooked for Years How Citigroup's Banamex USA unit turned a blind eye on the Mexican border. 20 November 2015   http://www.bloomberg.com/news/articles/2015-11-20/inside-the-money-laundering-scheme-that-citi-overlooked-for-years   When Antonio Peña Arguelles opened an account in 2005 at Citigroup’s Banamex USA, the know-your-customer documents said he had a small business breeding cattle and white-tailed deer, ranch-raised for their stately antlers. About $50 a month would come into the account, according to the documents. A week later, Peña Arguelles wired in $7.09 million from an account in Mexico, allegedly drug money from Los Zetas, a violent cartel founded by former Mexican soldiers, documents in his money-laundering case in Texas say. In all, Peña Arguelles shuttled $59.4 million through the account, according to a confidential report by banking regulators that berated Banamex USA in 2013 for its failure to comply with anti-money-laundering rules. Banamex USA didn’t file a suspicious activity report about...
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Following consultation by NSW Land and Property Information and NSW Fair Trading, new laws have passed to better protect consumers buying property off the plan. Developers will need a buyer’s consent before they end a contract using a sunset clause, otherwise they need to apply to the Supreme Court to justify ending it. Find out more by reading the media release - Off the plan protections secured and visit our Buying property off the plan page. http://www.lpi.nsw.gov.au/__data/assets/pdf_file/0004/206842/2015_10_Legal_protections_for_off_the_plan_property_purchasers.pdf No. 2015/10 November 2015   Legal protections for off the plan property purchasers On 17 November 2015 the NSW Government passed the Conveyancing Amendment (Sunset Clauses) Act 2015 to provide further protections for purchasers in off the plan property contracts. This Act inserts a new Division 10 into the Conveyancing Act 1919 entitled ‘Off the plan contracts’. The Act addresses concerns that some developers are using the ‘sunset clause’ as a way of terminating an off the plan contract specifically for...
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CEO's should spend two days and one night in olden day STOCKS in Martin Place and the heart of Melbourne for every charge of Maladministration.  That's JUSTICE for mortgage victims and that equates to 600,000 nights and rising.  Long suffering Low Doc victims and Farmers will supply the tomatoes!   Time to give Bankers a bit of "vertical."   Banks must be 'shamed' on vertical integration By Alice Uribe Friday, 28 August 2015   http://www.investordaily.com.au/regulation/38098-banks-must-be-shamed-on-vertical-integration   There has yet to be "sufficient shame" applied to the banks and their chief executives to reduce the problems inherent in vertical integration, argues a former ASIC executive.   That was the view of former ASIC economist and founder of Erskinomics Consulting Alex Erskine at yesterday’s 15th Annual Wraps, Platforms & Masterfunds Conference in the Hunter Valley. “After [the next] fiasco we should have the CEO of the bank put their enforceable undertaking between their teeth...
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Home loan fraud    No jail for two men involved in $170 million home loan fraud - Myra home loans worth $170 million relied on false documents.   16 December 2015 Sarah Danckert   http://www.theage.com.au/business/banking-and-finance/no-jail-for-two-men-involved-170-million-home-loan-fraud-20151216-glonif.html   Two men involved in what is thought to be Australia's biggest home loan fraud have avoided jail, after a court found they were exploited by the alleged mastermind of the $170 million scheme. On Tuesday, Myra employee Mohamed Ahmed and former colleague and mortgage broker Aizaz Hassan were sentenced to a five-year community corrections order over their involvement in the "widespread financial conspiracy". Both men pleaded guilty to one charge each of conspiracy to commit fraud, following an investigation by the Australian Securities and Investments Commission. Glen Waverley couple Najam Shah and Manija Zayee have also been charged over their alleged involvement in the scheme. The County Court heard Mr Ahmed and Mr Hassan had worked...
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FOWLER LIES, COVERS UP, MOORE ALLEGES By Leanne Mason http://trove.nla.gov.au/ndp/del/article/129100365 The Managing Director of Westpac, Stuart Fowler, had told lies, Independent MLA, Michael Moore told the ACT Legislative Assembly last night. “Mr. Fowler is living up to his reputation in lying to the Courts, to Parliament”, he said. His minions act entirely without ?: conscience, bullying witnesses, gagging, attempting to gag the Senate: and political interference.” Mr. Moore told the Assembly....”about a Federal Court case, Australian Bank Employees’ Union v Westpac Banking Corporation.  It was about the “dismissal of the manager of Westpac’s Kingaroy branch in Queensland following an incident involving the Premier of Queensland, Sir Joh Bjelke-Petersen”. “The incident was related to a payment of $400,000 from the Bond Corporation to Sir Joh that subsequently leaked to the press. “The manager of the branch, Mr. Nuttall was sacked by the Chief General Manager, Mr. Stuart Fowler – Mr. Fowler has since...
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http://www.genworth.com.au/downloads/4-2-3-Spotlight/spotlight-series-low-doc.pdf   Introduction of the low-doc loan has created a unique opportunity for mortgage lenders and the self-employed borrower. Introduced to Australia in 1999, low-doc loans revolutionised mortgage lending for a key sector of the market..........   “While the number of lenders offering low-docs is quite saturated – most banks and non-banks have a number of variants in their portfolio – the changing face of Australia’s workforce will continue to drive demand.” says Peter Hall, Country Executive & Director, Genworth Financial Australia and New Zealand.     Attachments area   Preview attachment Genworth spotlight-series-low-doc.pdf     Genworth spotlight-series-low-doc.pdf              ...
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http://awaken-longford.com/2014/01/24/irrevocable-power-of-attorney-more-sharp-practice/   Irrevocable Power of Attorney!!!!…….More sharp practice??????? January 24, 2014 · by nacainte · in Bankster News, Courts, Mortgage Securitisation,Repossessions · 8 Comments A friend has asked me for my view on Irrevocable Power of Attorney, which is granted to a Lender in the Mortgage Charge as standard in Ireland.  I have, over the past several years, asked many, many borrowers if they were aware that they had granted an “Irrevocable Power of Attorney” to their Bank as part of the transaction that was buying their home, without fail, every single one said that they had no idea that they had given this “Irrevocable” power away to the Bank. The vast majority were quite horrified when they realised this fact. One person said ” I wouldn’t give power of attorney to my mother, why would I give it to a Bank”.  Again, it appears to me that this was an issue better not brought to the Borrowers attention by the...
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