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Banking
Posted by 'MattCortes' on 09 May 2011 @ 17:40

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MattCortesJoined: November 2010
Total Posts: 3
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It was the regulator who should have held the banks back.

The banks were doing exactly the same as the borrowers. They didnt have their own money so went to the wholesale money market to borrow funds on terms far far shorter than the 25/30+ year mortgage terms. Unfortunately they assumed these wholesale markets would always be offering money at a similar rate and when the market crashed in the US the worldwise wholesale market had a liquidity crisis. Mortgage lenders owed money that they didnt have as they dont have any depositors and banks were given far more freedom under the rules compared to Building Societies. People thought the banks they had their savings in would run out of money so wanted their money out faster and this made the situation worse.

Regulation of how much a lender has to have in ready funds at any one time would have protected against this. Lenders shouldnt be able to borrow the millions they did lend it out then sell it off though securitisation sales for a quick profit. The FSA needed to control this. Sure profits would have been lower but the banks would still exist.

Message Thread:

ITPro by 'MattCortes' (06 May 2011 @ 14:21)

Re: ITPro by 'itpro' (06 May 2011 @ 16:41)

Re: ITPro by 'MattCortes' (06 May 2011 @ 16:55)

Re: ITPro by 'Traxtar' (06 May 2011 @ 16:56)

Re: ITPro by 'itpro' (06 May 2011 @ 16:58)

Re: ITPro by 'Aquila' (06 May 2011 @ 17:05)

Re: ITPro by 'chriskasch' (06 May 2011 @ 17:12)

Re: ITPro by 'Aquila' (06 May 2011 @ 17:19)

Re: ITPro by 'itpro' (06 May 2011 @ 17:18)

Re: ITPro by 'Aquila' (06 May 2011 @ 17:24)

Re: ITPro by 'BD' (06 May 2011 @ 17:47)

Re: ITPro by 'Aquila' (06 May 2011 @ 17:48)

Re: ITPro by 'alanrr' (06 May 2011 @ 17:49)

Re: ITPro by 'MattCortes' (06 May 2011 @ 18:00)

Re: ITPro by 'Newshound' (06 May 2011 @ 18:34)

Re: ITPro by 'Aquila' (06 May 2011 @ 19:19)

Come on Guys,,,,,, Make us laugh some more!!!! by 'itpro' (09 May 2011 @ 15:44)

Re: ITPro by 'alanrr' (06 May 2011 @ 23:45)

Re: ITPro by 'RoadRat' (07 May 2011 @ 20:16)

Re: ITPro by 'Aquila' (07 May 2011 @ 20:58)

Squeeky clean? by 'MattCortes' (08 May 2011 @ 15:13)

Re: Squeeky clean? by 'Aquila' (08 May 2011 @ 15:28)

Re: Squeeky clean? by 'MattCortes' (08 May 2011 @ 15:40)

Re: Squeeky clean? by 'itpro' (09 May 2011 @ 15:56)

Re: Squeeky clean? by 'Zico' (09 May 2011 @ 16:06)

Re: Squeeky clean? by 'MattCortes' (09 May 2011 @ 16:27)

Re: Squeeky clean? by 'Zico' (09 May 2011 @ 16:42)

Re: Squeeky clean? by 'MattCortes' (09 May 2011 @ 17:07)

Re: Squeeky clean? by 'itpro' (09 May 2011 @ 17:15)

Re: Squeeky clean? by 'MattCortes' (09 May 2011 @ 17:32)

Re: Squeeky clean? by 'itpro' (09 May 2011 @ 18:27)

Re: Squeeky clean? by 'MattCortes' (09 May 2011 @ 18:33)

Re: Squeeky clean? by 'itpro' (09 May 2011 @ 18:39)

Re: Squeeky clean? by 'Zico' (09 May 2011 @ 17:20)

Banking by 'MattCortes' << You are here!

What 'regulators'? by 'itpro' (09 May 2011 @ 18:36)

You know the regulators......... by 'MattCortes' (09 May 2011 @ 18:50)

Re: You know the regulators......... by 'Zico' (09 May 2011 @ 20:12)

Re: You know the regulators......... by 'MattCortes' (09 May 2011 @ 21:51)

Re: You know the regulators......... by 'itpro' (10 May 2011 @ 1:24)

Re: Squeeky clean? by 'itpro' (09 May 2011 @ 16:31)

It is SQUEAKY, not sqeeky. nt by 'AlfieMoon' (13 May 2011 @ 14:02)

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