Wed Aug 15, 2018, 11:32 AM

SWBTATTReg (20,501 posts)

Housing crash of 2008 / Royal Bank of Scotland traders enjoying our pain...

Last edited Wed Aug 15, 2018, 03:17 PM - Edit history (1)

I thought that this article in Sky News today regarding trader behavior regarding the buying of financial instruments on the housing market properties in 2008, leading up to the housing market crash as well as the stock market crash, was disgusting...

One big reason why I don't trust anyone in the financial markets at all (bankers, stock market, etc.)...and also why I don't understand why more of these persons (not just the companies) haven't been prosecuted...this post is just FYI, since I know quite a few of us went through quite a bit w/ the crisis of 2007-2008.

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Here's original link:

Royal Bank of Scotland Bankers Joked About Ruining US Housing Market," Sky News, Aug. 15, 2018.
https://news.sky.com/story/royal-bank-of-scotland-bankers-joked-about-ruining-us-housing-market-11473390

Royal Bank of Scotland bankers 'joked about ruining US housing market'
A US justice department report lays bare bankers and traders' disregard over their alleged misconduct that led to the 2008 crash. Royal Bank of Scotland (RBS) traders compared their behaviour to gangsters in "Goodfellas" and joked about ruining the US housing market in the run up to the financial crisis, it has been claimed.
A US Department of Justice report into the mis-selling of mortgage-backed securities before the 2008 banking collapse details bankers and traders' apparent disregard over their contribution to the global monetary meltdown.

It was published alongside the announcement that RBS had agreed to pay $4.9bn (£3.6bn) to settle the DoJ's probe. 15:54, UK, Wednesday 15 August 2018
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9 replies	Author	Time	Post
Housing crash of 2008 / Royal Bank of Scotland traders enjoying our pain... (Original post)	SWBTATTReg	Aug 2018	OP
If it makes you feel any better	bucolic_frolic	Aug 2018	#1
I heard that lots of countries (or at least some) are now very skepical about ...	SWBTATTReg	Aug 2018	#2
Um. the Royal Bank of Scotland	whathehell	Aug 2018	#3
Buying and selling american housing, yes to your ? (I guess it's a question by you,	SWBTATTReg	Aug 2018	#4
Not housing - mortgage-backed securities	whathehell	Aug 2018	#5
I didn't blame the housing crisis on scottish banks...I pointed out that they (the banks)	SWBTATTReg	Aug 2018	#6
FYI, Sky News article today Link, and if you want to add to the OP.	appalachiablue	Aug 2018	#7
Thanks so much!! I have added link!! Take care!!! nt	SWBTATTReg	Aug 2018	#8
Thank you for posting. The impact of this hustle will last decades!	appalachiablue	Aug 2018	#9

Response to SWBTATTReg (Original post)

Wed Aug 15, 2018, 11:38 AM

bucolic_frolic (39,317 posts)

1. If it makes you feel any better

our no-income mortgage securities were repackaged and sold all over the globe, sharing our flimsy debts with all buyers.

No surprise bankers, even junior ones, are able to estimate situations where a higher level of risk of default exists. Most, though, lack any power - political or financial - to alter the system set by higher-ups, regulators, politicos, and thus they can do little about it.

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Response to SWBTATTReg (Original post)

Wed Aug 15, 2018, 11:46 AM

SWBTATTReg (20,501 posts)

2. I heard that lots of countries (or at least some) are now very skepical about ...

American debt and the like by now...now w/ Donnie boy in power and all of the crap he's pulling w/ folks all over the world, mouthing off against our allies, etc., American power is on the wan, and I don't blame the world one bit, rejecting American assets etc. for investments when you have such greedy people (the repugs) in power...dictating basically what laws etc. to pass, that solely benefit a tiny tiny portion of the population (their donors)...

Take care...

An additional note...it seems like they're trying (the repugs) to roll back all of the protections put in place after the crash of 2008, so we'll have a repeat of some fashion before too long again...be safe!!!

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Response to SWBTATTReg (Reply #2)

Wed Aug 15, 2018, 12:06 PM

whathehell (28,599 posts)

3. Um. the Royal Bank of Scotland

is part of "American power"?

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Response to whathehell (Reply #3)

Wed Aug 15, 2018, 12:13 PM

SWBTATTReg (20,501 posts)

4. Buying and selling american housing, yes to your ? (I guess it's a question by you,

not very clear).

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Response to SWBTATTReg (Reply #4)

Wed Aug 15, 2018, 12:36 PM

whathehell (28,599 posts)

5. Not housing - mortgage-backed securities

The 2008 financial crisis came about from the collapse in value of mortgage-backed securities. These are what were bought and sold, not houses.

The banks sold fraudulent mortgages - true. But the the rating agencies and wall street brokers converted them into mortgage-backed securities, which spun out of control. That supplied the money the banks used to issue more mortgages.

Without the easy money from the securities, the banks would not have been able to issue enough bad mortgages to bring down the economy.

It is inaccurate to blame a Scottish bank for crashing the American housing market.

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Response to whathehell (Reply #5)

Wed Aug 15, 2018, 12:47 PM

SWBTATTReg (20,501 posts)

6. I didn't blame the housing crisis on scottish banks...I pointed out that they (the banks)

enjoyed peoples pain and that it was disgusting...

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Response to SWBTATTReg (Reply #2)

Wed Aug 15, 2018, 03:13 PM

appalachiablue (39,539 posts)

7. FYI, Sky News article today Link, and if you want to add to the OP.

"Royal Bank of Scotland Bankers Joked About Ruining US Housing Market," Sky News, Aug. 15, 2018.
https://news.sky.com/story/royal-bank-of-scotland-bankers-joked-about-ruining-us-housing-market-11473390

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Response to appalachiablue (Reply #7)

Wed Aug 15, 2018, 03:18 PM

SWBTATTReg (20,501 posts)

8. Thanks so much!! I have added link!! Take care!!! nt

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Response to SWBTATTReg (Reply #8)

Wed Aug 15, 2018, 03:53 PM

appalachiablue (39,539 posts)

9. Thank you for posting. The impact of this hustle will last decades!

The MBS racket and all of those involved, did a bang up job on many economies, people and communities in the US and Europe. Canada was spared because they didn't get into the market and have stricter banking regulations, like we used to. And because they have sense.

Fmr. US Treasury secretaries joke about increasing income inequality: Hank Paulson, Tim Geithner, Robert Rubin, Sheryl Sandberg. April 27, 2015, Milken Institute Global Conference, Beverly Hills, Ca.

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