Dear Captain Haddock.  You lose again but its a little entertaining.  My evidence in our Australian Federal Parliament never suggested the Australian Office of Financial Management ("AOFM") was profiting from a fraud.  Best to read the Transcript 8th August 2pm.  We asked if audits had been carried out by the AOFM and the following day the AOFM stated audits were carried out on the securities (people's homes in asset lend) and NOT THE Loan documentation.  

Had that occurred as a spot check - just a  minor ad hock look, the auditors would have seen magnificent discrepancies leaping out from each page - as BFCSA Members have done.  The loans were arranged on rubbery figures!  And you now wish to trust our major banks annual figures?  OK, lets stay on track.

 So we know the rubbery figures led to masses of imprudent lending, without the consumer's knowledge or consent as the banks altered the figures AFTER the copies of the original was sent to the banks by FAX.  10% were FULL DOCS by Bank Managers - more rubber.  This means we have a toxic loan problem.  The quantity now needs measuring.......

Treasury is therefore the beneficiary of the PROFIT and we have consistently stated the word PROFIT.    As taxpayers, we have actually purchased the INCOME STREAMS from those securities.  So if our surveys amongst members are correct "NOT ONE CLEAN LOAN," a host of other legitimate questions naturally emerge.  

We have discovered the Loan Apps which were deliberately hidden for 5 years or more.  I told Parliament: " Not one clean loan in sample of 1000 people AND The Australian GOVERNMENT cannot or ought not to PROFIT FROM A FRAUD.  What is missing from the "mind numbingly detailed reports..." (your words) and yes we do read them.......is WHAT % of the Bank Profit comes from the selling of LOW DOCS?  Did you ever ask yourselves why that is?  I had that question raised in TV interview a few years back on this very subject and the answer from med size Bank was 62%.

The Australian people need to ask the four Majors what their % of their profit is derived from LOW DOC LENDING?

At least you are now thinking about this chaotic system of reporting.  My forte is OMISSION and omission is a  crime in Australia. Look for whats NOT there.  I also advised Parliament the fact that we have people in default still in their homes in Mexican Standoff due to the fraud, and those people are not reported as being in default we do presume AND, there has been a frenzy of refinancing of billions of dollars worth of loans in what is known as BUFFER LOANS to hide the stench of those RUBBERY FIGURES.  

As a result of that material to Parliament, two weeks later APRA wrote to all the banks regarding....yes of course......correct reporting of defaulting loans and refinance (cover-ups) reported as "good loans" "good lending policies" etc etc.  Payments "all up to date" because banks have been feeding billions into the loan accounts of victims to show the appearance of their being able to "afford" to pay mortgage payments with the bank's own money!!!

THIS IS NO NOVEL.

Good solid loans?   I would suggest straw loans?  Now the refinancing has been a little curtailed....oops....and just watch the fallout......same is America.

All will be revealed. It appears our BFCSA Members are more informed.....   Isn't this fun?  Our Members are guiding Treasury in "how to look for a fraud that's right under your noses."  

Our Government should be after the Bank Barons and not the Broker Pushers....... Why do they not see?  Hmmmmm we know.     Its called a cover-up.  No-one wants to open the Pandora's Box.  No-one wants to lift up a  corner of the banker rug.

Just an afterthought......for all the doubters: the Australian Taxation Office ("ATO") lifted up the rug in 2005 at the request of ASIC and realised there were "hundreds and hundreds" of dirty loans specifically in the LOW DOC lending market.  "This is a job for ASIC they told me..."  My answer in 2005 "yes indeed."  Suddenly everything was buried for another eight years of consumer misery. Why I wonder?

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