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Banker FUCKS still getting £2.5bn bonuses!
Former Member
Posts: 1,876,323 The Mix Honorary Guru
So after the Lehman Brothers bankers caused the bankruptcy of their company by overexposing themselves to subprime mortgages they knew poor people were unable to repay, and all other forms of toxic debt, the bankruptcy causing much greater ramifications through the global financial system, the New York office are still going to walk away with £2.5 BILLION pounds! http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4795072.ece
The profits made by hedge fund short-sellers (betting that companies are going to go down in value / go bankrupt, and then starting self-fulfilling rumours to ensure this happens) goes to their gold-digger trophy wives £1m necklaces, £25,000 a year private schools, holiday homes which caused the housing bubble and more! http://www.dailymail.co.uk/news/article-1058828/With-1m-diamond-necklace-Jamie-Cullum-performing-wedding--meet-UKs-hedge-fund-WAG.html
Hopefully the madness will now end!!
The profits made by hedge fund short-sellers (betting that companies are going to go down in value / go bankrupt, and then starting self-fulfilling rumours to ensure this happens) goes to their gold-digger trophy wives £1m necklaces, £25,000 a year private schools, holiday homes which caused the housing bubble and more! http://www.dailymail.co.uk/news/article-1058828/With-1m-diamond-necklace-Jamie-Cullum-performing-wedding--meet-UKs-hedge-fund-WAG.html
Hopefully the madness will now end!!
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Comments
You insult people by calling them poor.
You're basically saying poor people shouldn't be given the opportunity to buy their own home.
I know plenty of poor people that worked and saved to pay their mortgages and go without luxuries.
I also know plenty of people that earn a good wage and have no money because they SPEND far too much on things they don't really need and buy their luxuries before settling other debts.
There is a huge difference between being poor and being a "High Risk" financially.
You think encouraging a person with a below average income to take out a mortgage which is over 120% of their combined wage should be acceptable?
That's exactly what the American banks were doing and it's come back and bitten them on the ass because surprise surprise they couldn't afford it.
Poor people should be given oportunity to buy a house, but not mortages like the above.
Its slightly more complicated than that, the biggest issue which caused this mess was the seperation of the person giving out the loan and the person taking the risk.
So, what happened was Bank A gave out a loan, it then sold this loan to someone else, who probably sold it on to another bank.
Bank A now have no interest in whether or not the loan is paid back, in fact its in their interest to loan as much as possible for the commissions.
It totally changed the way that mortgages were sold, it used to be just a good long term investment, it changed into a short term rush for as many commissions as you could get.
Your politics really are confused, you want a government who stays out of peoples business, you complain about new laws, yet you want a government who controls the financial sector.
oh and to the OP, there's nothing wrong with short selling in fact you can't have a healthy market without it. shorts covering and profit taking puts a floor under the market, and if you can't hedge a long position in a volatile market you are more likely to just sell. this latest move by various governments to ban short selling is another sign of desperation and is ultimately futile.
Do you talk to people like this in real life?
I'd imagine you get beaten up a lot if you do.
As if he would dare!
Look, I'm sorry for calling Budda an idiot. But frankly, that comment was ludicrious. Where have I said that the government should try to control the financial sector? Obviously, some regulation is required - that's a necessary evil. But that's about as far as it should go.
You can call me what you want SG, it wont in any way change the level of fear I feel for you.
So you wouldnt control what bankers get bonuses then? I'm just curious as to how far you want the regulations to go, perhaps you think that the government controlling wages isnt control over the financial sector?
The problem was that the high risk sub-prime market was rated as a safe investment, causing a massive influx of investment. In a normal situation the amount of money invested in such high risk lending would be so low as to be irrelevant but here the many investors and funds thought they were getting something for nothing - a sudden untapped vein of secure loans.
It's built to a massive cycle of lending against bad debt then selling it on as secure investments. The problem isn't the bad debt, it's pretending its secure in order to sell it at an overinflated value.
The black woman in question is hardly to blame that five steps down the line her morgage is being passed on as the same as a rich black single mother's third home purchase.
Maybe she could? But her circumstances changed?
Although we aren't supposed to name call, you sound like an idiot in all honesty.
The middle classes spending on their luxuries has had a massive impact on the current economic problems.
The UK's personal debt is around 1.6 trillion £ at last count !
Masses of people (more than ever) are not just defaulting on mortgages, its credit cards, loans, etc. Record numbers on IVA's and bankrupcy.
It all counts towards the overall gloomy picture. If those people hadn't lend so much in personal debt, they would of paid their mortgage etc.
Personally, I see plenty of stories on the forums from the middle classes in 6 figure credit card/loan debt and losing their houses etc.
"Subprime" ISNT poor people - it has NOTHING to do with income!
It is about the credit worthiness of an individual. I know people earning 30k+ (OK not astronomical wage but above average) who are on IVA's and could not get credit to save their lives ! If they did need a mortgage, or got one before going on the IVA, they would be subprime, as they are considered a risky lender!
On the other hand, I bought my house, when my basic salary was only around 19K, I did have other enhancements (shift allowance, on-call, overtime) but the banks didn't really care about that - they credit scored me, it was good, I got a prime rate mortgage.
If I earned 100K but was bankrupt, do you think I'd get good rates ?
But moving on people - does anyone think the bail-out is really going to help?
no, it won't, you can't just make debt obligations disappear by passing the parcel, the bailout is not going to slow the rate of defaults or repossessions. all it does is move the bill from the banks to the taxpayer, which isn't really going to work as the average american is all tapped out.
the only real options are letting the banks go to the wall and risk a disorderly unwinding in the global economy, or printing their way out, provoking capital flight and eventually repudiating on american debt. ben and hank are stuck between a rock and a hard place.
The credit crisis has been caused by a very, very small number of people. Even on a trading floor, only a very small number of people will be concerned with subprime derivatives and their ilk.
What really highlighted this ignorance was the collapse of Lehman. Soooo many 'reader reaction' sections of most papers apart from the FT that I read were full of people delighting in the fall of Lehman, conveniently forgetting or being too stupid to realise that probably not even 1% of their work force were responsible. The plight of cleaners, receptionists, concierge, HR people, auditors, risk, and virtually every other staff member who doesn't get the large bonuses afforded to traders were funnily not mentioned. Most of it seemed to be schadenfreude masking jealousy that they were not paid that much.
I consider myself a banker but I have nothing to do with trading, nor with derivatives, equities, FX, bonds etc. etc. So is this my fault?
Don't tar us all with the same brush. The consequences of letting these banks and funds fail would be a lot worse than the Fed stepping in and saving them, trust me.
That L.B. awarded bonuses of more than £7bn in 2006, which is actually more than the debt it had when it went belly up some 18 months later, would be hilarious if it weren't tragic for the tens of thousands affected by its demise.
No different from the public sector, sadly.
Bonuses are subject to the same market forces as everything else and will rise and fall with the economic tide. To say that they're obscene is a bit sweeping but generally accurate.
http://news.bbc.co.uk/1/hi/uk/7634641.stm
Seriously, you need to get over yourself and go and live in some mythical land where capitalism doesn't exist if that's seriously what you think.
So the receptionist deserves to be made redundant? The cleaners? The hordes of people who are earning very average salaries deserve to be made redundant because a small number of people got greedy? They're all in on it are they? If that's what you think, then I'd love some of what you're smoking.
I suppose you don't care one jot that the City contributes around 9% of this country's GDP and the phenomenal tax revenues raked in from these companies and the high earners pay for schools, hospitals, roads etc. etc.
It's only through the miracle of consumer capitalism and economies of scale that you're able to post these messages. You think that the computer, ISP etc. were fashioned by little old men in mud huts somewhere? Seriously, wake up and start living in the real world.
Unless you work for a charity, only ever use cash, grow your own food and produce your own electricity I assume you are just as much a part of 'the system' as the average cleaner in a bank.
Also unless you work for a charity which gets 100% of its donation from private individuals who do not benefit from UK banking (ie no-one), you too benefit from them. They've been a massive boon to the UK economy over the last several hundred years - providing massive amounts of taxable income, both direct through corporation tax and indirect, through income tax etc.
Wow - this is almost like a StarGalaxy/Kermit hybrid...?!