Wall Street lenders on Friday were rocked by the implosion of little-known UK mortgage provider Market Financial Solutions Ltd, fuelling concerns about wider losses among banks and reviving warnings of more "cockroaches" in the booming private credit industry.
Private credit making a name for itself.
For loans to MFS totalling 1.16 billion pounds, there was only 230 million pounds of "true value" available in the collateral accounts, they said.
Just a little mismatch. I'm sure that this is just a freak anomaly.
London-based MFS specialised in complex property-backed loans. It had applied for administration, a form of UK insolvency protection, after it ran into difficulties, according to previous media reports and court documents seen by Reuters. Creditors who successfully applied to have the company put into administration on Wednesday cited financial irregularities and mismanagement in court documents.
MFS may have been "double pledging" assets and there could be a collateral shortfall of 930 million pounds ($1.25 billion), administrators working on behalf of creditors warned in documents submitted to London's High Court this week. The collapse raises further questions on the practice of asset-based financing, which involves loans that are backed by collateral such as hard assets, while also putting the spotlight on double-pledging that was at the heart of the twin bankruptcies of auto parts supplier First Brands and car dealership Tricolor.
Huh. Sounds like...
So do these people get their mortgages wiped?
Or does a bigger player buy the debt and keep the game going
Probably an insurance policy somewhere that protects the banksters
What, is the ratio of CC (inhouse tokens) vs sats (real money) in circulation in the SNs economy these days?
Is there any way of keeping track of the SNs sats vs CCs ratio?
Or maybe it's a secret we are not allowed to know?
Wonder how many more ‘cockroaches’ are hiding in these private credit portfolios.