Member Info for BasherSmith

Ignore "skip past newsletter promotion" in my last post.

From a Guardian article on the 9th of June.

"Labour MP John Grady questioned the FCA’s estimates, noting that the process could last even longer than its forecast. “The timetable you’ve set out, I suspect, doesn’t take into account the fact that the judicial review could then go to the court of appeal if it’s a point of law, and then the supreme court,” he said."

If it gets to the Supreme Court the FCA will just be told to go back and look at the Johnson verdict and align their scheme with that. The current Supreme Court verdict is the law unless it's changed by either the Supreme Court or Parliament. I think the higher Court will just look at the law as it stands and kick the chair from under Rathi and pour a bucket of cold water over him - I hope so anyway. I see that VW and Co are challenging the basic legality of the scheme - excellent!

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Oh dear - I wrote **** up so Auntie LSE punished me by taking out all my capital letters!

what an unholy mess. i go back to what mr john swift kc said:

"the supreme court has sought to introduce clarity, whereas the fca have created confusion."

rathi gets paid over £500,000 per annum to produce this **** up.

HtTps://committees.parliament.uk/committee/158/treasury-committee/publications/3/correspondence/

So assuming that is correct, I wonder how much this could reduce the potential CBG bill? I'm guessing 20% to 25% . CBG will know, but they aren't telling. In fact they aren't telling us anything, which is one of the reasons why the share price is on the floor.

HtTps://www.oeclaw.co.uk/news/view/has-the-fca-exceeded-its-powers-in-the-motor-redress-scheme

Ben Strong KC on the Scheme 1 2007 to 2014 question.

1.Alternate scenarios: The expected fallout if the scheme has to be altered or abandoned entirely.

2.FCA's powers: Lessons learned from this case regarding the FCA's ability to implement compensation schemes.

I would really like to see the FCA's reply to those two questions from the Treasury Committee. I would also like to know why they think they have the power to penalise lenders who were acting in good faith and following the rules in force at the time. IMO they have violated both common justice and common sense and totally exceeded the judgment given in the Johnson case. One day I hope a Judge will point this out to them.

I will still be reading the FCA response though with interest and looking for clues as to their thinking.

HtTps://committees.parliament.uk/publications/53178/documents/297461/default/

Sorry.

HttTps://committees.parliament.uk/publications/53178/documents/297461/default/

Apologies if already posted.

From Google AI.

"UBS recently upgraded UK specialist lender Close Brothers Group plc to a 'Buy' rating. They set a price target of 555p, noting that the stock's low valuation reflects overblown fears regarding motor finance regulations and provides an attractive risk/reward profile.Analyst Upgrade & OutlookRating & Target: UBS upgraded Close Brothers from 'Neutral' to 'Buy' with a 555p target price.Valuation: UBS analysts highlighted that the stock trades at a heavy discount—around 7.3 times expected earnings—which is below its 10-year average and the broader sector.Sector Sentiment: The upgrade is based on the view that market fears regarding potential motor finance redress costs are overstated.Close Brothers Restructuring PlanJob Cuts & Savings: Amid regulatory challenges, Close Brothers has launched restructuring efforts targeting approximately 600 job cuts and about £60 million in annualised cost savings by FY27. Financials: The company reported recent adjusted pre-tax profits 18% ahead of consensus, successfully managing impairments despite a tightening in its loan book.UBS & Close Brothers Connection UBS acts as a corporate broker and active analyst covering the lender, working out of its London headquarters. Furthermore, Close Brothers' current Chief Finance Officer, Fiona McCarthy, previously worked at UBS where she served as interim CFO for their global investment bank."

Poor share price performance today . Bank earnings are reportedly good at the moment, so I'm expecting an upgrade on Thursday. Apparently the market isn't!

on re-reading it looks like *******s. sorry for posting.

I would like to think that there's no smoke without fire but I really don't understand that article.

Dividends resumed?

htTps://www.ad-hoc-news.de/boerse/news/ueberblick/close-brothers-group-stock-gb0007668071-uk-lender-resumes-dividend-as/69345317

"How much cash will CBG be sat on by year end?"

A hell of a lot Mate, because they sure aren't giving any of it to me in dividends.

Liberty - One way or another I expect that the scheme will be withdrawn or if it goes to the Tribunal be badly knocked about and abandoned.  If this is the case then we are back to the Supreme Court judgment in the Johnson case and the basis of complaints will be an unfair relationship, deliberate concealment of a DCA, or an excessive DCA amount or such like.

What we have never known to my knowledge - and I find this very irritating - is the level of DCA commissions that were being used by Close Brothers.  I would like to think that Close Brothers being an old established and conservative bank would not have been making excessive DCA charges nor deliberately concealing their existence, but I just don't know -  perhaps someone else does. If the DCA's charged by Close Brothers were small or moderate, then there may be no basis for anyone making a complaint, or the reverse could be true of course.

In my naive way I thought that we had turned a corner and that things were going to get simpler. Looks like I got that one wrong.

"As of May 2026, the FCA’s planned car finance compensation scheme faces significant delays and potential collapse due to legal challenges. While payouts averaging roughly £830 were set for 2026, lenders' legal challenges mean a resolution is likely delayed until mid-November 2026 or later, shifting focus towards individual complaints rather than an immediate mass payout."

Martin Lewis, trying to speak with his face covered in egg.

Still bloody wrong. £3,200,000,000! Oh the embarrassment, and me with A level maths!

Sorry, £32,000,000,000.

Actually it's more thinking about it, it's 40% of 11 billion