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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: Standards and Poor - billions in liability for its rating of AAA for toxic financial products - ABN Amro

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Yes folks: Truth finally bubbling to the surface.  Did you purchase a TOXIC LENDING PRODUCT 

http://www.theaustralian.com.au/business/defeated-sp-faces-storm-of-litigation/story-e6frg8zx-1226946308743

 

Defeated S&P faces storm of litigation

STANDARD & Poor’s is bracing for the onset of billions more in legal claims following a court ­ruling that could extend liability for its rating of toxic financial products prior to the global financial crisis.   The full bench of the Federal Court rejected an appeal by S&P and ABN Amro after they were found liable for giving AAA ­ratings to tens of millions of ­dollars worth of toxic financial products.  In a landmark 2012 judgment, 12 regional Australian councils successfully sued S&P for almost $20 million lost on complex ­financial products called CPDOs (constant proportion debt obligations) in the global financial crisis. The products had been given positive ratings by S&P, including its ­coveted AAA rating.

The court yesterday unanimously rejected an appeal against the 2012 judgment, upholding the original decision finding that S&P was liable, along with bank ABN Amro (now owned by RBS), which paid S&P for the ratings and then onsold the products.  Among other things, the court found S&P had acted in a misleading and deceptive manner by giving the products a AAA ­rating when they knew the products did not deserve the rating.  The case brought by Australian councils is being watched worldwide for its potential effect on billions of dollars of litigation pending against S&P and other ratings agencies.  An action seeking to recover $250m from S&P has been launched by European institutional investors in Amsterdam, while the US Department of Justice has launched a $5 billion law suit against S&P for its ratings of toxic securities prior to the GFC.STANDARD & Poor’s is bracing for the onset of billions more in legal claims following a court ­ruling that could extend liability for its rating of toxic financial products prior to the global financial crisis.   The full bench of the Federal Court rejected an appeal by S&P and ABN Amro after they were found liable for giving AAA ­ratings to tens of millions of ­dollars worth of toxic financial products......................   read more http://www.theaustralian.com.au/business/defeated-sp-faces-storm-of-litigation/story-e6frg8zx-1226946308743#

 

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  • doyla66
    doyla66 Saturday, 07 June 2014

    We can't trust S&P - their ratings system is full of corrupt dealings, or maybe they're just totally incompetent.
    Litigation is a start in the right direction. But why all this pre GFC interest?
    What about now? Pre GFC conditions are emerging in financial products, their marketing and and the ongoing toxic lending.
    Haven't we learned enough from the analysis of the pre-GFC conditions to be able to foresee the rocks and icebergs in the present situation?
    Mainstream writers are often reluctant to spell it out as pre-GFC2, but that's what so many are actually observing, right around the world, and hoping they're wrong ... or working out how to maximise their returns in case GFC2 occurs suddenly.
    If we can't learn from our recent history then we are bound to repeat the same mistakes, over and over, until either it breaks us or the system completely collapses.
    Roll on some responsible rational planned solutions like the phasing in of Glass Steagall and the division of the financial markets for the greater safety of retail clients without any loss of the thrill of risk by the sophisticated and wholesale clients.
    Is there any genuine argument against Glass Steagall?

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