UBS sued on sub-prime mis-selling

[Rubber Duck]

Germany's HSH Nordbank is to sue the Swiss banking giant UBS for mis-selling millions of dollars of investments linked to US sub-prime mortgages.

It wants to recover "significant" losses on a $500m (£253m) portfolio it bought in 2002....

http://newsvote.bbc.co.uk/1/hi/business/7262288.stm

Sorry Wall Streets, "Woops" just ain't going to cover it. Those those that lost money are going to be Baying for Blood!

[jacksonm]

The Swiss banks were doomed already 6 years ago as soon as they let Bush start controlling them.

.

[touchring]

Originally Posted by jacksonm

The Swiss banks were doomed already 6 years ago as soon as they let Bush start controlling them.

.

Wow, bush is taking the blame for subprime also? LOL.

[mulligan]

Just the beginning .. much more to come

[touchring]

Originally Posted by mulligan

Just the beginning .. much more to come

I just read a news saying that California foreclosures exceeds sales in jan. http://www.mercurynews.com/realestatenews/ci_8344134

Sooner or later, this huge supply of foreclosured properties will make their way back to the rental market, causing rent to slacken, and more woes for speculators that depend on rent to pay part of their mortgage instalments. Round Three.

[mulligan]

Originally Posted by touchring

Sooner or later, this huge supply of foreclosured properties will make their way back to the rental market, causing rent to slacken

Or someone with a bit of spare cash will 'suck these things' out of the 'market' once the bottom has been hit .. wait .. and then flog them for a good ROI

[touchring]

Originally Posted by mulligan

Or someone with a bit of spare cash will 'suck these things' out of the 'market' once the bottom has been hit .. wait .. and then flog them for a good ROI

Fool money?

People buy houses for speculation only when they see capital appreciation potential. Houses are not domains, they depreciate a lot, and there's tax, interest, agent fees, maintenance, and all sorts of holding costs.

It's better to wait for the market to make a convincing turn around before making any move at all.

[mulligan]

Yep .. can wait til it turns .. depends on your risk management stategy and how deep you wanna 'get in' .. by then the 'hawks' will be into the game and it will be too late ...

BTW .. I'm not talking abt someone buying a single house .. more like those who have 100mil + to 'drop' on multiple risky investments and if it doesn't come off .. oh well .. nevermind .. move on to the next 'big thing'

[Rubber Duck]

Originally Posted by mulligan

Or someone with a bit of spare cash will 'suck these things' out of the 'market' once the bottom has been hit .. wait .. and then flog them for a good ROI

This is going to take at least three or four years to turn around, and even that is probably being overly optimisitic. This is not just a recession, it is a fiasco!

[Drewbert]

The "American dream of home ownership" has turned into a clusterfuck, just like everything else The Deciderer touched.

Word is "don't blame me I voted for Gore/Kerry" t-shirts are flying off the shelves.

[mulligan]

Originally Posted by Drewbert

The "American dream of home ownership" has turned into a clusterfuck, just like everything else The Deciderer touched.

Word is "don't blame me I voted for Gore/Kerry" t-shirts are flying off the shelves.

Dream being the 'operative word' here ... Sure you 'own it' .. but when your mortgage is worth waaaay more that the market price of your home then what to do? expect the suicide / gun crime rate to climb

Oh I forgot .. is your bank going to tank? Go down the shitter?

Originally Posted by Drewbert

Word is "don't blame me I voted for Gore/Kerry" t-shirts are flying off the shelves.

LOL

[touchring]

Originally Posted by Rubber Duck

This is not just a recession, it is a fiasco!

The whole thing is a scam, it's the biggest scam in history.

The idea is to generate as much mortgages as possible to be sold at a profit. The home owners are ripped off, and so are the european banks that bought them.

[Rubber Duck]

Originally Posted by touchring

The whole thing is a scam, it's the biggest scam in history.

The idea is to generate as much mortgages as possible to be sold at a profit. The home owners are ripped off, and so are the european banks that bought them.

Well they didn't scam European Banks. The concept that American Corporations are not affected is just plain wrong. I suspect that this is just a test case. The full scale of the back-lash is still largely unknown, but there are a lot of people out there with huge amounts of money that have been stung. This isn't going to go away in a hurry and should just about be reaching a head by the time the Yanks go to the polls. Bush will not only have devasted his country but also his party. How does that oath of allegiance go again?

[touchring]

Originally Posted by Rubber Duck

Well they didn't scam European Banks.

The liar loans given out to people that can't afford the mortgage payments. And then bundling the loans into investments that are sold on false data. This is surely fraudulent.

There is fraud involved, some groups of people directly orchestrated or encouraged the fraud and then banks either knowingly and unknowingly passed on the investments.

[Rubber Duck]

Originally Posted by touchring

The liar loans given out to people that can't afford the mortgage payments. And then bundling the loans into investments that are sold on false data. This is surely fraudulent.

There is fraud involved, some groups of people directly orchestrated or encouraged the fraud and then banks either knowingly and unknowingly passed on the investments.

Sorry that was a typing error I meant:

"They didn't just scam European Banks."

Yes, it was undoubtedly fraudulent, but to admit it at the time would have brought down the entire financial system. Even those that will eventually claim would not have wished to have brought about that eventuality. Although, it could still happen.

Things will come to a head in the Civil Courts first with multi-billion dollar claims awarded. Afterwards, the shareholders of the companies involved will want blood and seek Criminal Charges to be brought against their own executives. This will make Enron look like a pillow fight.