Southern Pacific Mortgage Limited is a subsidiary of the devious, rather nasty bunch of bankers who were called Lehmans until they went bust recently owing vast sums of money and wrecking the World economy in the process.
Southern Pacific Mortgage Limited, SPML, to all those unfortunate enough to be its victims, is one of those rip-off subprime mortgage lenders that specialise in fleecing borrowers and generally employing trickery to convert other people’s money into their own by any immoral, dishonest and devious means they can get away with.
SPML are still trading here in the UK, apparently. They have two principle activities at present. One seems to be repossessing as many of its borrowers as possible to evict them from their houses and destroy their lives.
The purpose of this is so SPML can get their greedy little hands on as much of those unfortunate householders property as quickly as possible so that SPML can sell it off quick and cheap grab the money and run before someone realises they are part of a bankrupt bunch of thieves and stops them stealing any more money and ruining more people’s lives.
The other main activity of this charmless bunch of financial confidence tricksters is to put all that money they are forcing homeowners to give them by selling their homes and charging extortionate ‘penalty’ fees of one sort or another, into an intricate web of other companies and, wait for it, charitable trusts, to make sure it will be as safe as possible from all those people owed billions by this dishonest bunch of loan sharks.
So, creditors owed money by Lehmans and Lehmans ‘ subsidiary companies will be fresh out – they will not get money that Lehmans subsidiaries have carefully squirreled away beyond the reach of bankruptcy administrators. People owed money by Lehmans will go away empty handed.
Meanwhile, let’s get this right, SPML announce in their annual report ending November 30th 2008 that the company intends to ‘enter into an orderly wind down of its assets and operations and/or seek a disposal of its assets and business’.
Elsewhere in the SPML annual report the company makes clear that mortgages arranged by SPML for its unsuspecting homeowner victims are bundled together, securitised into a ‘derivative’ financial instrument as they laughingly name it, and sold on into a ‘Special Purpose Vehicle’ as SPML describe it ( it just means another separate company that simply holds all those bundled together mortgages as an asset to be further manipulated into a fantasy world of breathtaking deviousness).
Then, guess what ? The SPML annual report proudly announces these Special Purpose Vehicle companies, SPV’s for short in the childish jargon of these idiot ‘Masters of the Universe’, are all ‘legally and beneficially owned’ by charitable trusts and are included in the financial statements of the company (SPML) on a ‘linked presentation basis’. That is more jargon designed to confuse people into not quite realising SPML have hidden all their money in charitable trusts so it is protected from all the people owned money by Lehmans and its subsidiaries.
Clever stuff, or what ? But is it moral ? Is it honest ? It may (possibly) be legal, but it doesn’t look remotely honest to me.
A Charity Commission spokesperson said: “A body is a charity if it is established for exclusively charitable purposes only. To qualify as a charity, an organisation must also demonstrate that its purposes are for the public benefit.
“The 1993 Act requires trustees to register charities in England and Wales with the Charity Commission. Any charity which has a gross income exceeding £5,000 a year is required to register. However, some special classes of charity are free from the requirement to register”.
I do wonder what on earth the ‘public benefit’ of the SPML arranged charitable trusts can be. Does it mean they have had a change of heart and decided to atone for their previously ruthless behaviour which led to Lehmans bankruptcy and global financial meltdown ? Do they now plan to rescue distressed homeowners being repossessed and thrown out onto the street by other mortgage lenders ?
Somehow I think not. There will be no ‘public benefit’ from these charitable trusts. But I rather think there might be a significant benefit to bankers and other investors perhaps. One does wonder. Let’s wait and see.
Actually, I took one look at the weasel like face of Dick Fuld, ex boss of Lehamns and the man that manipulated truth and honestly right out of Lehmans New York Headquarters windows as he steered the World into financial meltdown, and thought he looked completely devious, dishonest, immoral and almost certainly a rotten, nasty person.
Just the sort of person to preside over the setting up of loan shark mortgage lending in the UK and ensuring the fat profits of conversion and theft are carefully placed beyond the reach of honest people into ‘charitable trusts’ for God’s sake.
How can this happen. Where are our UK financial regulators and what the hell do they think they are doing while people like these sub-prime loan shark mortgage lenders like SPML fleece UK homeowners, leaving them destitute and homeless in their thousands.
What is the Financial Service Authority doing about these loan sharks ? What about the the Office of Fair Trading – what are they doing ? What is Parliament doing ?
Why, nothing at all of course. Even the Parliamentary Select Committee that recently produced an excoriating report on sub-prime mortgage loan sharking practices in which they roundly condemn those mortgage lenders such as SPML as social evils, does not seem to have registered on anyone’s radar, anywhere. Nothing is being done.
Something could be done about it. A number of American Federal Governments were so fed up in 2006 with one lender in the USA repossessing so many homes and blighting so many inner cities as the properties were left to become derelict; just rotting away while the homeowners evicted from them camped homeless under plastic in the streets of American cities, that a legal action was brought against that lender by those Federal, governments.
That particular loan sharking mortgage lender was called Ameriquest. Rather than risk going to court this evil lending business caved in and coughed up about $300 million dollars, or some such fantastic sum. Small change to them to buy off the Town Halls with. So, loan sharking Americquest bought off any possibility of proper justice for all those people whose lives it ruined by evicting them from their homes and then letting those homes become derelict and uninhabitable and even unsalable.
What a rotten World we are now living in.
Tags: Bankers, Banks, Charitable trusts, Credit Crunch, Debt, Dick Faulds, Economy, Eviction, Extortion, financial crisis, Financial Service Authority, Fraud, Government, Homeowners, Householders, Justice, Lehman Bros, Loan sharks, Loans, Mortgages, News, Office of Fair Trading, Politics, repossession, Southern Pacific Mortgage Limited, spml, Sub-primes Mortgage Lenders