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NAB Customer Support Group Conference 6 March2014

NAB Customer Support Group. NAB Customer Support Group Conference 6 March2014. Tailored Business Loans - ”The Banks had a Map” Windsor Actuarial Consultants & CDO2. Tailored Business Loans ARE Derivative Contracts. (Direct Link to an External Index).

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NAB Customer Support Group Conference 6 March2014

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  1. NAB Customer Support Group NAB Customer Support Group Conference6 March2014 Tailored Business Loans - ”The Banks had a Map” Windsor Actuarial Consultants & CDO2

  2. Tailored Business LoansAREDerivative Contracts (Direct Link to an External Index)

  3. Definition of financial derivative instrumentBIPRU 13.3.3 01/01/2007FCA PRAEach of the following is a financial derivative instrument:(1) an interest-rate contract, being:(a) a single-currency interest rate swap;(b) a basis-swap;(c) a forward rate agreement;(d) an interest-rate future;(e) a purchased interest-rate option; and(f) other contracts of similar nature

  4. But Does This Help You?

  5. TBL is also a commercial mortgage Specifically excluded from FSMA 2000

  6. Iniquity with TBL’s… Is the same as for swaps, (collars, etc)

  7. What the Banks Said(and what you knew) What the Bank Knew

  8. 1. You knew Future interest rates uncertain – range of views given

  9. 2. Bank knew Caps were cheap Big money paid for floors THERE WAS A MARKET!

  10. Bank should have Told clients about the forward curve

  11. But Banks Hard sold swaps/floors Deliberately weakened clients

  12. Clients were Sold Naked into a Bear Market

  13. ”Hockey Stick” Curve Rates expected to rise for about 3-4 years Then drop consistently for following 20 years

  14. Bear Market Expect recession/depression Longer term yields LOWER Longer term pessimism

  15. What wasn’t disclosed? 1. Day 1 Break Costs

  16. What wasn’t disclosed? 2. Extent of assessed Client risk (Market described by curve)

  17. What wasn’t disclosed? 3. Extent of unassessed client risk (Rate could fall faster/lower than curve)

  18. Who was involved?(Roles) 1 Whiz Kid

  19. Who was involved?(Roles) 1 Whiz Kid 2 Wide Boy

  20. Who was involved?(Roles) 1 Whiz Kid 2 Wide Boy 3 Mr Nice

  21. Who was involved?(Roles) 1 Whiz Kid 2 Wide Boy 3 Mr Nice 4 Mr Big

  22. Who was involved?(Roles) 1 Whiz Kid 2 Wide Boy 3 Mr Nice 4 Mr Big 5 Compliance (policeman)

  23. Who was involved?(Roles) 1 Whiz Kid 2 Wide Boy 3 Mr Nice 4 Mr Big 5 Compliance (policeman)

  24. Where to get help? NAB Customer Support Group! Bankirsa.com website

  25. Shutting the Stable Door? Extend 11 FCA/FSA Principles to Commercial Lending

  26. www.bankirsa.com Swap Valuation Calculator Sales Call Video

  27. NAB Customer Support GroupConference6 March 2014 Tailored Business Loans - ”The Banks had a Map” Windsor Actuarial Consultants & CDO2

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