|
||||||
    |
by Michael European officials are openly admitting that the two largest banks in Cyprus are “insolvent“, and it is now being reported that Cyprus Popular Bank only has “enough liquidity to cover the next few hours“. Of course all banks in Cyprus are officially closed until Tuesday at the earliest, but there have been long lines at ATMs all over Cyprus as people scramble to get whatever money they can out [...] I’m sick and tired of hearing about everything that the Fed is buying. The Fed is buying treasuries, the fed is buying mortgage backed securities, the fed is bailing out the banks of Europe, the Fed is keeping interest rates at 0, the fed is, the fed, is, the fed, is!!!!!! Everyone is watching the FED, why the hell don’t they use names. The Federal Reserve is a privately owned bank, [...] Aussie banks worth more than Europe’s combined European banks are drowning but Australian banks are swimming in cash ! By Lucy Kippist news.com.au August 18, 2012 4:15PM FOR the first time in history the value of Australian banks are now worth more than the Eurozone. The Commonwealth Bank made a net profit of almost $7.1 billion, the biggest ever reported by an Australian bank. That boils down to a daily profit of almost $19.5 [...] FRANKFURT, Aug. 13 (Xinhua) — European banks remain under substantial pressure on many operating fronts, a Deutsche Bank report said on Monday. Revenue declines seem to become entrenched due to volatile capital markets and the low interest rate environment and initial improvements on the cost side have not nearly been able to compensate for those reduced earnings, said the report. The report pointed out that the 20 largest banks in Europe reported [...] By: John_Mauldin About this time two years ago I began to seriously work with Jonathan Tepper on our book Endgame: The End of the Debt Supercycle and How It Changed Everything. It came out the following March. I remember vividly that in November of that year, as crisis after crisis hit Europe, and the first of about 20 summit meetings which were supposed to solve the crisis was convened, that Jonathan and I worried [...] KWN
Today 40 year veteran, Don Coxe, told King World News “…the amounts involved are at mind-boggling levels,” in terms of what is needed for Europe’s governments and banks. Coxe, who is Global Strategy Advisor to BMO ($538 billion in assets), also said that European banks, “…have borrowed huge amounts of money, in dollars, under currency swap arrangements,” and “if banks start to go down, we know from 2008, when banks start to [...] Moody’s has slashed the ratings of fifteen of the biggest banks in Europe and the U.S. in the latest slap in the face to the ailing financial sector. Those hit include Goldman Sachs, Morgan Stanley, Royal Bank of Scotland and Deutsche Bank – financial powerhouses domestically and internationally. The move could make it more expensive for the banks to attract funds. It’s also feared the downgrades could trigger fresh market [...] From Economic Policy Journal: Tens of billions of funding support for European banks appears to have shifted to the emergency lending assistance program of the European Central Bank from the long-term refinancing operations, an indication that some European banks may be in dire financial straits, reports CNBC’s John Carney. More details from Carney: The weekly financial statement of the ECB showed a 21.3 billion euro ($26.8 billion) decline in loans made under the [...] From Economic Policy Journal: Tens of billions of funding support for European banks appears to have shifted to the emergency lending assistance program of the European Central Bank from the long-term refinancing operations, an indication that some European banks may be in dire financial straits, reports CNBC’s John Carney. More details from Carney: The weekly financial statement of the ECB showed a 21.3 billion euro ($26.8 billion) decline in loans made under the [...] The word ‘encumbrance’ has received a lot of headlines in the last few months – and rightfully so – after we pointed out the impact that LTROs had in subordinating senior creditors of European banks. As Morgan Stanley points out, this is a considerable problem for bondholders as ‘in a wind-down scenario, senior unsecured holders have recourse to fewer assets and hence face a higher loss given default (LGD)’. In understanding [...] Italy’s Intesa Sanpaolo SpA has the most debt coming due at $28 billion, followed by UniCredit SpA with $21 billion, according to data compiled by Bloomberg. Italian banks must refinance a total $69 billion of bonds this year and $157 billion in 2011, while Spanish lenders have $28 billion and $73 billion of debt that needs to be paid. http://www.bloomberg.com/news/2010-08-01/banks-face-122-billion-bond-tab-as-europe-pays-up-to-sell-credit-markets.html Our coffers have dried up, can you spare me a Euro? This EU [...] May 14, 2012 – 11:28 AM By: Shamus_Cooke After the Greek elections struck fear into the hearts of the global banksters, the fallout remains uncertain. If the next Greek election produces an anti-austerity government, Greece will almost certainly make a speedy exit from the euro. If this happens — and it is looking increasingly inevitable — the consequences for the global economy are spectacularly gloomy. Yet U.S. media and U.S. politicians are largely [...] The hubub is caused by the bonds that Greece sold to get itsself financed to play with the big boys and girls. Defaulting on those bonds, if we were only talking about the bonds would cost the banks around Europe a huge chunk of change. Not so much to really fold them mind you, but it would take some fancy finnigling to stay afloat in a couple of cases. The [...] The Founder of one of the world’s largest asset managers, the $30 billion hedge fund BlueCrest, Michael Platt, spoke to Bloomberg TV and cut right to the chase, saying most of the banks in Europe are insolvent and the situation in the region is “completely unstable.” On how he approaches market risk: “”I do not take any exposure to banks at all if I can avoid it. All the money at BlueCrest Capital [...] by Finance Addict Regulators Are Encouraging Banks To Game Risk Models Two interesting articles were published yesterday discussing how banks in Europe are resorting to clever tricks that artificially raise their loss-absorbing capital to levels specified by regulators. They’re doing this especially to hit the level of 9% core capital-as-a-percentage of risk-weighted assets that the regulators require as a response to the most recent stress tests. While actually selling loans and exposures would [...] Via Peter Tchir of TF Market Advisors Whatever the European experiment once was, it has morphed almost beyond recognition. The policy responses have made the problem worse, not better, and it is becoming more complex. The contagion is spreading because every policy is linking the countries more closely, but not in a controlled and thoughtful way but in a haphazard poorly thought out way. Many banks in Europe would fail without ECB funding, so [...] The bailout king. God’s gift to Wall Street, Secretary Treasury Tim Geithner, says he has finally convinced Europe that the world will end if Europe doesn’t bail everyone out the way the US did. On ABC’s World News With Diane Sawyer, Geithner said that Europe finally gets it: “If you listen carefully to what they said this weekend, not just to us in private, but what they said publicly, they’re foreshadowing now [...] kingworldnews.com With gold and silver rebounding, today King World News interviewed four decade veteran, John Hathaway, the prolific manager of the Tocqueville Gold Fund. When asked if this latest decline in the metals felt like 2008, Hathaway stated, “It certainly did, the last two weeks especially, it was so panicky. The difference is that the governments in Europe, for sure, and the US, have shown their willingness [...] Are we on the verge of a massive financial collapse in Europe? Rumors of an imminent default by Greece are flying around all over the place and Greek government officials are openly admitting that they are running out of money. Without more bailout funds it is absolutely certain that Greece will soon default on their debts. But German officials are threatening to hold up more [...] LONDON—The European debt crisis loomed larger again Tuesday as officials worried that financial markets could thwart efforts to get countries such as Greece back on even fiscal footing. Moody’s Investors Service added to those concerns, warning Tuesday that a Greek debt restructuring could affect the credit ratings of other European governments and would probably also lead to rating downgrades for Greek banks. “The full impact on [...] Well , according to numbers from one of the biggest banks in Europe that would mean that Greece would leave a monster hole of debt….more than 300 billion, the money of the new loan not included… And now…all that is dependent of whether the market puts its trust back in to Greece debt…. that will happen…. and then we have [...] |
Custom Search
|
||||
|
Copyright © 2013 InvestmentWatch - All Rights Reserved |
||||||
The Dexia Effect
From Mark Grant, author of the financial commentary: “Out of the Box”
The Dexia Effect
As the banks in Europe report out earnings; or the lack thereof in most cases, it becomes clear that the LTRO is helping with liquidity but not with solvency past some very short term point. This is always the case of course but it is beginning to hit home. The balance sheets for many European banks have [...]