james
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Post by james on Oct 21, 2015 13:46:05 GMT
The assertion that the one that is subject to the same issues is interesting, given that they include potential fraud by the platform founders and operators.
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registerme
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Post by registerme on Oct 21, 2015 18:32:20 GMT
So was there any (repeatable) discussion about this at the Lendit conference?
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Post by easteregg on Oct 22, 2015 11:51:32 GMT
So was there any (repeatable) discussion about this at the Lendit conference? TrustBuddy was mentioned a few times, but no discussions on it, or any additional information
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Post by mrclondon on Oct 22, 2015 16:50:40 GMT
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james
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Post by james on Oct 22, 2015 21:04:39 GMT
Yes, shareholder money is almost certainly gone until they start legal action to try to get it back due to misrepresentation of the accounts. And they will be after the trustee and lenders in priority order even then. The short term loan nature of their business may help, since a lot of the lent money is presumably due to be repaid within a month or so and at least some money seems to be in explicitly identified client accounts. I suppose it's inevitable that many borrowers will try not paying until there's a small business operating the repayment system and doing the usual legal chasing.
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mikes1531
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Post by mikes1531 on Oct 22, 2015 21:15:21 GMT
I think, as with the original Telegraph article I linked to last week, there are elements of sensationalist tabloid journalism. " Savers who use peer-to-peer firm TrustBuddy have been told it is "highly unlikely" they will get any of their money back ..... " Hmm. Why ? The black hole is only a proportion of the funds currently on loan. More likely, IMO, shareholders have been told their shares are worthless. : Doesn't your comment above depend on... - The actual 'black hole' being no bigger than already identified; and
- The 'funds currently on loan' actually being on loan?
I'm not suggesting it is, but if the whole system were to have been a Madoff-like affair then the actual assets could be a lot smaller than the lender investors were led to believe they were.
I agree that I expect the shareholder investors to be the first to lose out.
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Post by westonkevRS on Oct 22, 2015 21:17:09 GMT
A lot of investor money will be gone in TrustBuddy. Stock market advisors and cash raising was done by Liberum: www.liberum.com/about/fundraising-successWhich according to this link includes two cash calls of €18.5m and £5.4m... There's gonna be some angry investors. westonkevRS |
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Post by westonkevRS on Oct 22, 2015 21:33:40 GMT
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james
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Post by james on Oct 22, 2015 22:56:14 GMT
I rather liked "To date Trustbuddy have not experienced any incidents of fraud". Just goes to show that even the biggest of players with a stock market listing and auditors can't eliminate the chance of losing money to fraud and have to factor it into platform risk management strategies.
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Post by westonkevRS on Oct 23, 2015 5:16:22 GMT
I rather liked "To date Trustbuddy have not experienced any incidents of fraud". Anyone that has been involved in unsecured lending, and especially short term lending, knows that fraud losses are a business risk. It would have been impossible for them to never have made a bad loan classified as impersonation, first party, flight, evasion of payment, etc. Just that "aren't we perfect" statement is suspicious. Kevin.
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Post by davee39 on Oct 23, 2015 10:35:56 GMT
For once this is relatively factual reporting based on the link to the Bankruptcy Trustee. The FAQ advises that some, or all, of Lenders money will be lost. (In English) www.lindahl.se/trustbuddy
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james
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Post by james on Oct 23, 2015 14:43:50 GMT
I rather liked "To date Trustbuddy have not experienced any incidents of fraud". Anyone that has been involved in unsecured lending, and especially short term lending, knows that fraud losses are a business risk. It would have been impossible for them to never have made a bad loan classified as impersonation, first party, flight, evasion of payment, etc. Just that "aren't we perfect" statement is suspicious. I agree, that's also how I viewed that claim.
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mikes1531
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Post by mikes1531 on Oct 23, 2015 18:07:25 GMT
Which according to this link includes two cash calls of €18.5m and £5.4m... Has all of that £24M already been spent? If not, and the only problem is the 'missing' £2.9M, then could there be enough left from the fundraising to repay the lenders what they're owed?
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Post by mrclondon on Oct 23, 2015 19:02:26 GMT
Which according to this link includes two cash calls of €18.5m and £5.4m... Has all of that £24M already been spent? If not, and the only problem is the 'missing' £2.9M, then could there be enough left from the fundraising to repay the lenders what they're owed? Since the board concluded they were trading insolvently and hence filed for bankcruptcy it safe to say there is no cash remaining from the the equity raises.
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adrianc
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Post by adrianc on Oct 23, 2015 19:16:37 GMT
There's a clue in the word "insolvent".
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