Published: 16 August, 2012, 12:08
California Housing Market post gains in July (click here)
By Alejandro Lazo
Seven major world banks (click title to entry - thank you) are to be questioned in the US over the possible manipulation of the Libor interest rate .
The Attorneys General in New York and Connecticut have sent summons to British banks Barclays, Royal Bank of Scotland and HSBC Holdings. US lenders Citigroup and JPMorgan, Swiss bank UBS and Germany’s Deutsche banks have also received subpoenas.
New York AG Eric Schneiderman and Connecticut AG George Jepsen are conducting a joint investigation into alleged Libor rigging by global banks between 2005 and 2009. Meanwhile Florida AG Pam Bondi is “actively reviewing the Libor matter” and has issued subpoenas, spokeswoman Jenn Meale said. Libor is an international interest rate which affects transactions worth trillions of dollars, as well as mortgages and bank-to-bank loans.
The Libor case came into limelight after Barclays paid $452 million to British and US regulators to settle the probe over its involvement in alleged rate fixing. Barclays’ chief executive Bob Diamond, chairman Marcus Agius, and chief operating officer, Jerry del Missier resigned under huge public pressure....
LIBOR has ceased to be a reliable benchmark for commercial and residential loans. The corruption has complicated every issue regarding the banks and consumers.
Wednesday, August 15, 2012
SEATTLE, Aug. 15, 2012 (GLOBE NEWSWIRE) -- Keller Rohrback L.L.P. is investigating potential claims against member banks of the British Bankers Association ("BBA") for manipulating the London Interbank Offering Rate ("LIBOR"). This investigation follows inquiries by the United States Department of Justice, Securities and Exchange Commission, Commodities Futures Exchange Commission, and several European governmental agencies into such conduct.
LIBOR is the primary benchmark for short term interest rates globally and is used as the basis for settlement of interest rate contracts on many of the world's major futures and options exchanges, including those in the United States. LIBOR is calculated based on submissions by member banks, which have included: UBS, Bank of America, Citibank, Deutsche Bank AG, Credit Suisse Group AG, JPMorgan Chase & Co., HSBC Holdings PLC, Barclays Bank PLC, Lloyds Banking Group PLC, Royal Bank of Scotland Group PLC, WestLB AG, Bank of Tokyo-Mitsubishi Group, Inc., Rabobank Group, Royal Bank of Canada, Societe Generale, and the Norinchukin Bank....
The last thing the housing market in any part of the world needs is more turbulence with LIBOR in question to its impact globally. However, realizing there are investigations taking place should stabilize the prices of housing. There is help coming if investigations prove to have caused hardship.
The last thing the housing market in any part of the world needs is more turbulence with LIBOR in question to its impact globally. However, realizing there are investigations taking place should stabilize the prices of housing. There is help coming if investigations prove to have caused hardship.
By Alejandro Lazo
August 15, 2012, 2:25 p.m.
The median home price in California rose to near a four-year high in July as more expensive homes sold and fewer foreclosures were purchased in the key Southern California and San Francisco Bay Area markets.
The Golden State’s median home price increased 2.6% fromJune and 11.5% from July 2011 to $281,000, real estate firm DataQuick reported. It was the fifth consecutive month that the median has risen year over year and the highest point for the measure for any month since September 2008.
Sales fell 3.7% from June, part of a normal seasonal decline. Sales were up 13.9% from the same month last year, as 39,507 newly built houses and condominiums sold statewide last month.
Sales of so-called distressed homes – foreclosures and short sales, in which the lender allows a property to be sold for less than what is owed – accounted for 41.0% of the market last month, down from 43% in June in 2011....
This is a good thing, the housing market is starting to show recovery. If the number of houses sold slows for awhile it is not tragic, it shows the purchasers are not simply investors with hopes of grabbing cash from state settlements with the banks (which does nothing to build neighborhoods). This may be the point when neighborhoods are actually finding recovery as families purchase into the market again.
If more individuals enter the market, the recovery of value will return. It is not an artificial value either. As real people return to communities the value within that community will increase. Local economies will become more important, schools will receive more attention locally and real estate taxes will return to the local governments. The government structures across the country have been deflating due to lack of revenue. A real turn around in housing values will return stability to the State and local governments.
One of the favorite attacks these days is against Public Employee Unions. The reason this seemed like a reasonable attack to the average citizen is because wages, pensions and benefits appeared to be too high compared to revenues of their governments, basically unaffordable. Those wages and benefits including pensions were established during a time when they were reasonable solutions for everyone, it is not the fault of the unions the banks failed and sent local governments into turmoil. Actually, the unions usually have credit unions for their members and the Credit Unions were uneffected during that time. The homeowners through Credit Unions weren't in stressed homes unless of course they lost employment.
When value returns to housing, people return to their communities, the requirements for the services of public employees will be greater with better functioning of the local governments with better income from taxes. Hopefully, as communities return to function, the Public Employees will be recalled to work again. It would not only help the unemployment rate, but, it would increase the local economies increasing the demand for good and services.
This may be the turning point, let's hope so.
If more individuals enter the market, the recovery of value will return. It is not an artificial value either. As real people return to communities the value within that community will increase. Local economies will become more important, schools will receive more attention locally and real estate taxes will return to the local governments. The government structures across the country have been deflating due to lack of revenue. A real turn around in housing values will return stability to the State and local governments.
One of the favorite attacks these days is against Public Employee Unions. The reason this seemed like a reasonable attack to the average citizen is because wages, pensions and benefits appeared to be too high compared to revenues of their governments, basically unaffordable. Those wages and benefits including pensions were established during a time when they were reasonable solutions for everyone, it is not the fault of the unions the banks failed and sent local governments into turmoil. Actually, the unions usually have credit unions for their members and the Credit Unions were uneffected during that time. The homeowners through Credit Unions weren't in stressed homes unless of course they lost employment.
When value returns to housing, people return to their communities, the requirements for the services of public employees will be greater with better functioning of the local governments with better income from taxes. Hopefully, as communities return to function, the Public Employees will be recalled to work again. It would not only help the unemployment rate, but, it would increase the local economies increasing the demand for good and services.
This may be the turning point, let's hope so.
