Global financial system implosion begins

[CH1]

Nigerian fraudster spin-off.
Nigerian fintech chief fined $250mn after holdings described as a ‘fiction’ (in FT)
Decision against Dozy Mmobuosi by US court comes after civil complaint by SEC against his Nasdaq-listed companies

Funnily enough Dozy's company Tingo Group Inc has as its president Chris Cleverly - cousin of James Cleverly.
Chris was also accused 3 years ago of a West Ham football club heist involving erstwhile porn supplier to the nation David Sullivan

EXPOSED: Chris Cleverly – the serial fraudster trying to buy West Ham

It has been widely reported that lawyer Chris Cleverly is the key London player in PAI, the company that wishes to buy West Ham and that Cleverly, cousin of Tory high flier James, is colourful. As a diehard hammer I put this article outside paywalls so that supporters of the club, the Ferdinand...

shareprophets.com

Probably this will be a big boost for James in his Tory leadership bid - his relatives clearly move in the right circles!

 

[yield]

Private Equity Investors Plead for More Clarity on NAV Loans
Bloomberg July 25, 2024. https://archive.ph/e3PIG



There's also a paywalled FT article, that is broken when I try to read it through archive. Subscribe to the Financial Times

Private Equity’s Favorite Borrowing Tool Sparks Fresh Scrutiny
Bloomberg. September 5, 2024 https://archive.ph/pSbvh

The Bank of England has already warned that it believes NAV financing could hinder financial stability in the UK because of how risky it is for banks. In its June financial stability review, it said such “leverage on leverage” could “expose lenders to risks at the portfolio company level, at the fund level, and at end-investor level.”

‘Double Whammy’
With its latest inquiry, the BOE is primarily worried that many private equity funds began buying up assets in the heyday of the post-Covid era, when low interest rates pushed up prices. The funds are now using those assets to secure the NAV loans, but private valuations are notoriously opaque and hard to value.

One note of concern for the PRA is that if the value of these assets in the underlying portfolio has fallen significantly, banks might not know until it’s too late.