CBA surveillance - Reason released tomorrow.

AngloSaxon said:
Whatever it is, the market hasn't factored it into the CBA share price. It's at a record high.
Click to expand...

Exactly. The market has no idea whats coming because CBA have intentionally not disclosed the risk to the ASX. The people who regulate this are ASIC. ASIC are too afraid to get involved, hence the ASIC senate inquiry.

Here is why CBA were spying on the Coalition function. The largest class action in Australian Banking History. We have the evidence from whistleblower CBA staff to prove CBA have been lying about what they did during the takeover of Bankwest. According to APRA disclosure documents the total under scrutiny is $3B but the final total may be much more (inc interest, damages)

Todays Australian
http://www.theaustralian.com.au/bus...-worth-billions/story-fn91wd6x-1226754534315#

Todays AFR
http://www.afr.com/p/business/finan...ing_plans_class_action_6AEGs5oTWPiOWQwOSUmwMP

can anyone find the non-paywall version.

There's alot more to come. If things go to plan there is enough evidence for criminal charges to be placed on CBA board members. Spying on senators will be the least of CBA's problems.
 
with 1000 of the little beauties, I sure hope it is all good news. You can bet your socks all the ASX smarties know the full story by now.

Thank you komrade paul!


OC
 
I wonder just how they would prove that claim? AFAIK, banks are usually happy if the payments keep happening, why would they bother, a repossession or winding up a company is a pain in the rear, and takes a LOT of time and effort. It used to a last resort thing.

Does not seem to have worried the market at all yet.

OC
 
Old Codger said:
I wonder just how they would prove that claim? AFAIK, banks are usually happy if the payments keep happening, why would they bother, a repossession or winding up a company is a pain in the rear, and takes a LOT of time and effort. It used to a last resort thing.

Does not seem to have worried the market at all yet.

OC
Click to expand...


It used to be the case that receivership was a last resort. But CBA used it as a "first strike". If you foreclose on someone who is not in financial difficulty then there is more cash flow to take and more equity in the assets. therefore foreclosing on performing businesses by faking a default made CBA more profitable, especially as though they are doing it to Bankwest customers in a different brand name that CBA are going to shut down in a few years anyway. The faking/manufacturing/tricking/inducing of a default makes this a criminal offense.

The scam immortalised in song
http://www.youtube.com/watch?v=5elLRwbNyc8
 
Old Codger said:
How do they fake a default?
Click to expand...

Ex 1. You have a property worth $1m. You borrow $600,000 and have a $400,000 deposit. Your business is making good profits.
step 1 - bank tells their bank valuer to redo the valuation of the property down by half price down to $500,000. If he refuses he will be removed from the banks "preferred supplier" list and lose business
step 2. this lower valuation triggers an "LVR default". This allows the bank to charge 18% and skim your cash profits to the bank.
Step 3. send in the receivers to "assist in supporting the business"
Step 4. receivers charge the customer $500,000. Because you cant pay, the receivers sell you up cheap (usually to a friend of the bank or receiver) as they know ASIC has never prosecuted anyone for breaching section 420A of the Corporations Act (selling at fair market value)
Step 5. after the sale, revalue the property back to its original value and claim there was a quick drop in the market. The bank/receivers have successfully taken your cash flow and deposit.

Here's a real life example from last years senate inquiry. watch the banks receivers body language
http://www.youtube.com/watch?v=9fC8vfm-0Sg

Ex 2. Commercials loans have an anniversary date.
step 1. Bank tells the customer "Your anniversary date is coming up but don't worry we will send you documentation to extend your loan"
step 2. customer waits for documents that never arrive.
step 3. customer asks bank "where are those document"
step 4. banks says "its in the mail"
step 5. customer will waiting for documents. 2 days before anniversary date bank says "we've changed our minds we want all our money back tomorrow otherwise you are in default"
step 6. Bank uses this "induced anniversary date default" to charge 18%, send in receivers etc.

Ex 3.
Step 1. increase customers interest rate.
Step 2. If he continues to pay his mortgage on time repeat Step 1
Step 3. If the customer tries to sell up or move to another bank, don't let him e.g. place arbitrary restrictions on his loan, let potential buyers know of pending receivership
Step 4. Once the interest rate is sufficiently high enough to cripple the customers cash flow send in the receivers.

real life example. bank said they will make the loan so difficult "that we couldn't make the payments"
http://www.youtube.com/watch?v=iLa9NbDrhiw

The final step for all of these is:
If the customer goes to the media/ASIC issue a press release saying that the customer "defaulted" knowing most Australians will automatically think the customer missed mortgage payments and have little sympathy for him.
If the customer claims he wasn't in financial difficulty and these alleged "defaults" were actually "bank induced technical defaults" issue another press statement claiming that the customer is a "conspiracy theorist" (4th July 2013 CBA letter to senate committee).

There are lots of other ways of "inducing default". They are illegal but CBA knows ASIC wont prosecute them. That's why a few months ago there was a senate inquiry announced to look into why ASIC aren't prosecuting.
 
Adds a new perspective to the predicted 'great levelling' and 'great reset'.
 
I am too out of date on this stuff now. I cannot imagine it happening back in the olden days!


OC
 
Old Codger said:
I am too out of date on this stuff now. I cannot imagine it happening back in the olden days!
Click to expand...

IMO a lot more people had integrity back in the 'olden days'. These days it seems to be a free-for-all.
 
AA...re post 10.. That exactly what happened in WA to a retired couple who bought a good motel business that was showing good returns. They put down a large deposit and intended to spend their semi-retirement with enough cash flow for living expenses plus pay the bank back with interest.

They were having no trouble meeting their commitments as stated above.

Then along comes the big boy to steal from the little boys. Gets the motel revalued for much less and then takes the steps as explained in post 10..

This case was on the ABC some time ago and it didn't raise too much concern. What chance have small business people got when you have people like this running the banks.. Not you OC, you are old school :)

You are better off buying shares in the bank than have a term or fixed deposit. Alan Kohler recently put up a graph that showed buying shares 4 years ago put you way ahead of someone lending the bank money at 4%. Bank collapses? Who gets paid first. It is not the Depositers, they are last SIT.

REGARDS Errol 43

Give em hell AA
 
"Bank collapses? Who gets paid first. It is not the Depositers, they are last SIT."


Sorry, but in the collapse of ANY public company, it is the SHAREHOLDERS that are last in the queue. They get whatever is left over (if anything) after sale of all assets and settlement of all debts etc.

OC
 
Old Codger said:
"Bank collapses? Who gets paid first. It is not the Depositers, they are last SIT."


Sorry, but in the collapse of ANY public company it is the SHAREHOLDERS that are last in the queue. They get whatever is left over after sale of all assets and settlement of all debts etc.

OC
Click to expand...

I could be wrong but I think the 'bail-in' legislations change this.
 
The first to be paid are the new holders of a banks "Covered" bonds. Thats right, the bonds that allow the bond holder to be paid in advance of depositors. Legislation that was passed by Labor and supported by the coalition. Disgusting on both sides of politics.
 
You must log in or register to reply here.
Back
Top