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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

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BFCSA: Lord M KIng says Australian Banks need Ring Fencing: Sub Prime Scandal

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http://www.smh.com.au/business/banking-and-finance/australian-banks-need-ringfencing-law-says-former-bank-of-england-governor-20140805-100ft3.html

Australian banks need 'ring-fencing' law, says former Bank of England governor

Banking and Finance

Date August 5, 2014

Former Bank of England governor Lord Mervyn King says Australia should look at the “ring-fencing” law adopted for banks in his home country, to avoid “the terrible moral hazard” of taxpayers bailing out banks for risky investments made by their trading arms.  His comments came after Financial System Inquiry chairman David Murray told Fairfax Media that a version of the “ring-fencing” law adopted from the Vickers banking inquiry in the United Kingdom should be considered in Australia.

Speaking on the sidelines of the annual Diggers and Dealers mining conference in Kalgoorlie after delivering the keynote speech, Lord King said other countries could benefit from studying Vickers.  “Vickers combined a high degree of ring-fencing, with higher capital requirements for banks,” Lord King says.

“…I think people in Australia have to look and see what the lessons of Vickers are for Australia.”

Ring-fencing sees banks’ trading arms legally separated from their lending and deposits businesses, and is part of a broader global push to protect savers, economies and governments.  “What you can’t have in a market economy is institutions that can never fail,” Lord King says.

“What you can’t do is to allow banks to put any risky investments they care to think on the balance sheet, on the asset side, and finance it with liabilities that the government has to come in and support.   “So therefore I think some ring-fencing is inevitable, as you go ahead, in order to avoid the terrible moral hazard from taxpayers having to bail out highly risky investments made through the medium of a bank..............

Read more: http://www.smh.com.au/business/banking-and-finance/australian-banks-need-ringfencing-law-says-former-bank-of-england-governor-20140805-100ft3.html#ixzz39uIOxcDo

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