Alert: Italian Bank Derivative Problem Investigated, Ties To Deutsche Bank. Moody’s Downgrades Outlook Of Big Four Australian Banks. BIS Warns Of A Blowout Of The Derivatives Could Happen At Any Moment!



Italian Bank Derivative Problem Investigated….ties to Deutsche Bank

Banca Monte dei Paschi di Siena SpA Chief Executive Fabrizio Viola and its former chairman, Alessandro Profumo, are being investigated by prosecutors for possible false accounting and market manipulation in relation to past derivatives transactions, two people familiar with the matter said Thursday.

http://www.wsj.com/articles/banca-monte-dei-paschis-ceo-former-chairman-being-investigated-1471539447

From 2013

The Deutsche Bank, Monte Paschi Cover-Up: Tier 1 Capital and an Equity Swap

In any case, on January 17, Bloomberg reported that “Deutsche Bank designed a derivative for Banca Monte dei Paschi di Siena SpA at the height of the financial crisis that obscured losses at the world’s oldest lender before it sought a taxpayer bailout.” The Bloomberg story set-off a wave of investigations which ultimately revealed that the world’s oldest bank made a series of bad derivatives bets that will ultimately cost it three quarters of a billion euros. The Bank of Italy has since approved a 3.9 billion euro taxpayer-sponsored bailout. The story has taken several decisive (albeit hilarious) turns for worst over the past two weeks and the whole thing now reads like a lost chapter of The Da Vinci Code, complete with treacherous characters, scandalous deal-making, and a secret contract locked away “in a concealed safe in a 14th century Tuscan palace.”

http://www.zerohedge.com/contributed/2013-02-15/deutsche-bank-monte-paschi-cover-tier-1-capital-and-equity-swap

Deutsche whistleblower, Bolt goes for treble | FirstFT

Moody’s downgrades outlook of big four Australian  banks

Ratings agency Moody’s has downgraded the outlooks of the big four Australian banks and the banking system to negative, warning of a more challenging operating environment over the rest of this year and into the future, while conversely upgrading its outlook on mining giant Rio Tinto.

Moody’s warned that the profit growth and asset quality could deteriorate at Australia’s biggest lenders, ANZ, Commonwealth Bank, NAB and Westpac. This could mean the institutions would be more sensitive to external shocks.

http://www.theaustralian.com.au/business/financial-services/moodys-downgrades-outlook-of-big-four-australian-banks/news-story/b52036161a8196e65d93811f252d6e1b

The Bank for International Settlements for the G-20 heads: a blowout of the derivatives could happen at any moment

The Bank for International Settlements has prepared a paper for the upcoming G-20 heads of state summit in China, warning that a blowout of the derivatives market could happen at any moment, and the clearinghouse system is totally unprepared to handle such a shock.

Remember that Deutsche Bank has the biggest derivatives exposure of any bank in the world, and it has counter-party contracts with almost every TBTF bank in the United States, Europe and Japan — and Deutsche Bank has been correctly described as a “dead bank walking.” Best estimates are that the global derivatives trade is still well-over one quadrillion dollars, even after losses this year that have already piled up.

https://larouchepac.com/20160816/derivatives-blowout-coming-west-must-join-putins-world

Global central banks are unloading America’s debt.

In the first six months of this year, foreign central banks sold a net $192 billion of U.S. Treasury bonds, more than double the pace in the same period last year, when they sold $83 billion.

China, Japan, France, Brazil and Colombia led the pack of countries dumping U.S. debt.

It’s the largest selloff of U.S. debt since at least 1978, according to Treasury Department data.

http://money.cnn.com/2016/08/16/news/economy/central-banks-debt-dumping/index.html

 

UFS