Comments on: Irresponsible Lending – Some Lessons http://fellowsblog.kiva.org/2008/08/21/irresponsible-lending-%e2%80%93-some-lessons/ Kiva Fellows share their experiences from the field Sat, 21 Nov 2009 19:52:11 +0000 http://wordpress.com/ hourly 1 By: Ralph Bierdeman http://fellowsblog.kiva.org/2008/08/21/irresponsible-lending-%e2%80%93-some-lessons/#comment-1930 Ralph Bierdeman Sat, 30 Aug 2008 21:26:00 +0000 http://kivafellows.wordpress.com/?p=1053#comment-1930 I must take exception with the last statement that a fair share of Northern Rock's problems are imported from the USA. For a UK institution to be exposed to a credit risk in the US, they must have knowingly and willingly looked to invest in some set of debt instruments offered there with the intent of boosting their own income. Why would a UK mortgage institution expose themselves to this without taking full responsibility for the encumbent exposure? I must take exception with the last statement that a fair share of Northern Rock’s problems are imported from the USA. For a UK institution to be exposed to a credit risk in the US, they must have knowingly and willingly looked to invest in some set of debt instruments offered there with the intent of boosting their own income. Why would a UK mortgage institution expose themselves to this without taking full responsibility for the encumbent exposure?

]]> By: Hitting the Microfinance Links - August 21st | myKRO http://fellowsblog.kiva.org/2008/08/21/irresponsible-lending-%e2%80%93-some-lessons/#comment-1893 Hitting the Microfinance Links - August 21st | myKRO Fri, 22 Aug 2008 06:23:55 +0000 http://kivafellows.wordpress.com/?p=1053#comment-1893 [...] Irresponsible Lending – Some Lessons [...] [...] Irresponsible Lending – Some Lessons [...]

]]> By: ourmanwhere http://fellowsblog.kiva.org/2008/08/21/irresponsible-lending-%e2%80%93-some-lessons/#comment-1890 ourmanwhere Thu, 21 Aug 2008 21:29:01 +0000 http://kivafellows.wordpress.com/?p=1053#comment-1890 More links - I head to Bamenda in two weeks to work there as a fundraiser. I live in Newcastle, the hq of Northern Rock. Thousands of local people will lose their jobs. Northern Rock foundation - a very charitable wing that has given millions to local causes has also been hit. Northern Rock even sponsors the local football and rugby teams. The reason behind their difficulties (from Wikipedia): "On 12 September 2007, Northern Rock asked the Bank of England, as lender of last resort in the United Kingdom, for a liquidity support facility due to problems in raising funds in the money market to replace maturing money market borrowings.[41] The problems arose from difficulties banks faced over the summer of 2007 in raising funds in the money markets, caused by the subprime crisis in the United States. The bank's assets were always sufficient to cover its liabilities, but it had a liquidity problem because institutional lenders became nervous about lending to mortgage banks following the US sub-prime crisis. Bank of England figures suggest that Northern Rock borrowed £3bn from the Bank of England in the first few days of this crisis." So yes, it may be Britain's financial services that are taking a battering (as my local community here is) but a fair share of that problem is imported from the USA. More links – I head to Bamenda in two weeks to work there as a fundraiser. I live in Newcastle, the hq of Northern Rock.

Thousands of local people will lose their jobs. Northern Rock foundation – a very charitable wing that has given millions to local causes has also been hit. Northern Rock even sponsors the local football and rugby teams.

The reason behind their difficulties (from Wikipedia):

“On 12 September 2007, Northern Rock asked the Bank of England, as lender of last resort in the United Kingdom, for a liquidity support facility due to problems in raising funds in the money market to replace maturing money market borrowings.[41] The problems arose from difficulties banks faced over the summer of 2007 in raising funds in the money markets, caused by the subprime crisis in the United States. The bank’s assets were always sufficient to cover its liabilities, but it had a liquidity problem because institutional lenders became nervous about lending to mortgage banks following the US sub-prime crisis. Bank of England figures suggest that Northern Rock borrowed £3bn from the Bank of England in the first few days of this crisis.”

So yes, it may be Britain’s financial services that are taking a battering (as my local community here is) but a fair share of that problem is imported from the USA.

]]> By: Jonathan Chiswell Jones http://fellowsblog.kiva.org/2008/08/21/irresponsible-lending-%e2%80%93-some-lessons/#comment-1889 Jonathan Chiswell Jones Thu, 21 Aug 2008 19:53:06 +0000 http://kivafellows.wordpress.com/?p=1053#comment-1889 Good idea, but the loan bosses in the West are interested in maximising their profits by whatever means they can, in the mistaken hope that they can jump off the band wagon before the inevitable bursting of the credit bubble. But there is something so ironic in the fact that the poor behave so much more responsibly than the rich. Good idea, but the loan bosses in the West are interested in maximising their profits by whatever means they can, in the mistaken hope that they can jump off the band wagon before the inevitable bursting of the credit bubble.
But there is something so ironic in the fact that the poor behave so much more responsibly than the rich.

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