Good article
The analysts valuing this at worst case £640m is rubbish. They have relatively limited access to the finances, certainly not the detail
I think close bro assessment that they could need £400m must be more on the money. £200m on its was, another business sale to follow I suspect or bid for the group, maybe Lloyds and Barc will buy. Could save millions in legal fees consolidating the fight against the idiots at the FCA trying to justifying their existence . |
The reality is 250 barrels a day ! Lol ! |
The press and sky news make it up as they go along !! Weren't that long ago we had billions of Barrels of oil discovered near Gatwick airport !! lol ! |
Co1 thanks for this,he writes a very valid article, I am airing on the positive |
 Just found this analysis from David Betteley
Head of Content, Asset Finance Connect.
(This seems to be early, before the appeal to the Supreme Court, but I think it's still very relevant).
There is little evidence that the ongoing FCA investigation is having a detrimental effect on consumers appetite to purchase new and used cars with the help of POS (point of sale) automotive finance.
However, the scaremongering of Martin Lewis and the CMCs (claims management companies) has increased anticipation amongst a certain cohort of customers to expect significant compensation, but in many cases this may well lead to disappointment, as this is not a mis-selling scandal in the same way that the Creditor fiasco (PPI) was.
Indeed, the use of the word “mis-selling” by Martin Lewis and then gleefully reported in the media is indeed misleading customers, as the commission arrangements that were in force prior to the banning of DCA's in 2021 were perfectly legal.
The other important point to note is that a sale by a dealer to a customer has many moving parts…..the price of the new or used car after discount negotiations, the value of any part exchange, the type of product (HP/PCP) and of course the APR, are explained and accepted by the customer.
However, the FCA remit only extends to the relationship between the lender and its customer. The FOS (financial ombudsman service) , however, has the scope to include the dealer and here there is potential for debate which complicates any final outcome.
This webinar was designed to be an update about the revised timeline and the reasons for the FCA “kicking the can down the road”.
There was general agreement that once the Barclays judicial review and the three Court of Appeal cases have been concluded, then a further follow-up webinar will be essential to advise on the implications of these decisions.
Please look out for reminders from Asset Finance Connect about this important subject.
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This reinforces my view that this whole sorry affair is being blown out of all proportion. If compensation is awarded, and it's a big if, it will only refer to the dealers commission plus interest. Probably not very large sums at all. Since no rules or laws were being broken prior to 2021 I really can't see how the awards can be backdated. I'm strengthened in my belief that when the facts are generally known there will be a big re-rate for CBG. |
s34 thank you. If you put a capital T in the link ie htTps it will work directly without copying and pasting.
I think the head of the FCA is a dead man walking. |
https://news.sky.com/story/starmer-throws-down-gauntlet-to-watchdogs-with-growth-edict-13280738 |
Starmer throwing down gauntlet to watchdogs on sky news !Including fca !Could bode well for banks . Will try and get a link |
1. What written law was CBG breaking? What FCA rule was it breaking?
2. It might be argued that it was breaking a common law principle that the intermediary owed a duty of care to the buyer. What does that mean in practice? Bit vague and open to dispute isn't it? Has the car dealer or broker got to jeopardise his own business by pointing out that a rival is offering a cheaper deal? What happened to "Caveat Emptor" - the principle that the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made.
3. If this was the case why didn't the FCA point this out to the lenders and demand that it be stopped years ago. Don't the FCA understand British law?
4. If CBG are guilty, then so are all the other brokers and intermediaries who have been arranging finance for everything else from time immemorial. I don't remember my Insurance Broker pointing out that if I used a comparison site I could probably get a cheaper insurance deal than he was offering. Double glazing, sellers of kitchens, sellers of furniture, sellers of cruises, the list goes on. A judgement in this direction will cause years of litigation and legal cases. It simply can't be allowed to happen IMO.
5. On what basis can regression prior to 2019 be justified? Why only for a few years? Why can't we go back through the mists of time? The stable door was shut in 2019, why can't a line be drawn through this at that point? I think the Supreme Court are likely to do just that.
6. I am not a lawyer but I still have sufficient belief in the legal system to think that common sense and common justice plus pressure from the Treasury will prevail in the end. If this happens there will be a massive re-rate coming for CBG and the other lenders, so I am betting accordingly.
7. If I am abiding by a law as it stands, but the law is changed, how can I be penalised for breaking the new law before it had even been instituted or was in force? That's what regress amounts to surely.
8. There seems to be a generally accepted view that CBG and the others will inevitably have to pay substantial compensation, perhaps they will, but I don't think this is inevitable at all.
Just an interested layman's opinion of course. Anyway good luck to all and best wishes for the New Year. |
So, Supreme Court decision by April/May, then, FCA decision on fines and compensation shortly after.CBG should have 400m set aside by April this year after the sale of CBAM goes through and hopefully shareholders will get an idea of what writedown will have to be taken. One to put away in a drawer and come back in 6 months. |
Hope so...... |
Shorts squeezing this higher ??? |
Big sells on Ith and tullow , cbg . Same institution ?? |
Turning blue soon.Shorts closing from lows today |
Might have taken a few stops out !! |
Barclays hardly moved !! |
Blackhorse The div alone save 100 million a year .2024 100 million 2025 100 million Asset business sold 200 million So 400 million set aside For liability from 150 million to 650 million .It's the shorters and market uncertainty driving this . Can't find any news re Barclays other than on Bloomberg ??? |
Or fake news ? |
They have to pay fine & compensation, no way out . It will drop below 100p and after all this drama , will be good |
Hence the drop in both stocks ?? |
Bloomberg says Barclays lost court case ?Can't see anything else where ?? |
Any idea why the big increase in Close shorted stock ?
FCA’s top lawyer told MPs last week, that it may be as big as the £50bn payment protection insurance miss-selling saga, with the FCA considering whether to formally intervene in the supreme court case appeal to share their expertise to assist the Court.
Institutional Shorters (red corner), have been busily loading up last 2 weeks doubling levels, what do they know ? given the slightly better news the chance of supreme court ruling in future, that appears at odds with short sellers, with only retail buyers (blue corner), buying into that, and look to have run out of steam already.
So, the red corner has it, with the price resuming it's downward path off it's mini rally high, an unnecessary binary bet, on a court case. Remains highly speculative, with wage inflation set to rise, that will help a bit also, on the delinquency front, given unemployment held, which was a surprise, but despite that the market sees red, for more or less all stocks.
The FCA plan an update 19th, with also BOE deciding on interest rates (later will not change), I don't see much chance this will be good news on Thursday, with Close just waiting to learn their fate which is unlikely to be decided until early summer 25, trading much like a zombie stock until then, or some earth shattering news, real or not real, moves it either way. |
Thought it was a detailed write up. Although six months old |
Yep !!And I like the part that says they are worth keeping at a price of 492p !!!! |
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