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Bank bosses face day of reckoning

Governments on both sides of the Atlantic are cracking down on the executives of mortgage companies in the aftermath of the credit crunch’s latest developments.

Wall Street giant Lehman Brothers has been forced to close, Merrill Lynch sold and HBOS taken over by Lloyds TSB due to their exposure to mortgage assets.

Now Prime Minister Gordon Brown as well as the FBI are after executives who claim not to have understood the risks they had taken on.

In a speech at the Labour Party conference in Manchester last week, Brown told delegates: “No member of a bank’s board should be able to say they did not understand the risks they were taking and walk away.”

In the US, the FBI is investigating 26 lenders for corporate fraud and providing misinformation to the market.

Robert Mueller, director of the FBI, says: “The allegations would be that there have been misstatements of assets.”


Choose booze

Mole’s never been one for maths but you can buy him a beer on these sums any day. If you had purchased 1,000 worth of Northern Rock shares a year ago they would be worth 4.95 today. With HBOS, the same amount invested earlier this month would now be worth 16.50.

Staff training vital to business success

Any analyst worth their salt will tell you that good leadership can make or break a company. Recent events have brought into sharp focus the fact that strong leadership is even more critical in turbulent times and has a particular relevance for those in the mortgage industry.

BDS offers free vals on selected deals

BDS Mortgage Group in conjunction with conveyancing firm Goldsmith Williams is offering free valuations during October, on all packaged remortgage deals with Money Partners, Kensington and Platform.There are no limits as to how many free valuations can be claimed and the offer will be initially available from October 1 to 31, 2008. To qualify, the […]

Senate passes US rescue bill

President George W. Bush’s $700bn rescue plan to kick start the American economy has been passed by the Senate.

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Consumer attitudes to protection

Royal London commissioned Opinium to run our State of the Protection Nation research to find out how people felt about their own protection needs and the industry as a whole. By Ross Jackson, Senior Protection Marketing Manager We surveyed people who had already taken out some kind of protection insurance and those who didn’t have […]


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