Now children, today we will commence with one of the basic principles in mathematics: 2 + 2 =4. No, they do not equal 5 or 3 or any other number. Obvious you may say, but no, not to everyone.For example, Akfinans Bank Limited think because they wrote out a cheque at the auction of Kulaksiz 5’s homes for the sum of 2,077,000 TL then that is what it cost them. True it would show on the debit side of the balance sheet. However, here come the really difficult bit, they were paying themselves so it will then show on the credit side of the balance sheet. Balanced – and that children is why it is called a balance sheet. Money out, money back in; net cost NOWT (as we northerners say).Should the mortgage have ever been granted? Here she goes again I hear you shout. I can also hear you all shouting NO IT SHOULD NOT. I cannot argue with you there. Morally, it should not have been, but even from the Bank’s point of of view, the second mortgage should definitely not have been. It was a bad business decision and a very questionable business decision from a Bank, who by their own admission are Trustees of the account holders money.
In my other life I was a Building Society Manager. All mortgage applications had a clear criteria to follow. Had I been foolish enough to grant the first mortgage to Abdurrahman Guney and Yuksel Yilmaz, the second application would have never have been accepted. The first mortgage was already 8 months in arrears by the time the second mortgage was applied for. In month three of the arrears situation on the first mortgage I would have commenced legal action to recover the debt, by month eight the legal proceedings would have been well advanced. There is no way any astute lending institution (with a responsibilty to it’s shareholders and account holders) could justify advancing MORE MONEY to a known risk, unless of course something ‘fishy’ was going on.
I am accusing no-one. Merely asking questions..
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