|
|||||
|
By Kari Huus, Staff writer, NBC News Lawmakers in Cyprus approved three bills late Friday aimed at securing a bailout for its troubled banks from the European Union and averting a financial meltdown. The legislation includes one bill that allows the government to divide the wobbling lenders into good and bad banks — a law that would likely to be applied first to Cyprus Popular Bank. The goal is to restructure without [...] by Phoenix Capital Research
On February 22 2013, we released an article focusing on the little known fact that depositors’ savings were at risk in Europe. At that time we wrote: It’s a little known fact about the Spanish crisis is that when the Spanish Government merges troubled banks, it typically swaps out depositors’ savings for shares in the new bank. So… when the newly formed bank goes bust, “poof” your savings [...] by Phoenix Capital Research
By the look of things, Europe’s banking system is breaking down again.
Bankia’s shareholders have received a nasty new year’s surprise. They may lose most of their investments or even all of them says the Spanish bank rescue fund in its latest report.
According to FROB, the Fund for Orderly Bank Restructuring, Bankia has a negative value of 4.2 billion euros, and its parent group BFA is 10.4 bn in the red.
Valuation [...] From GoldCore Gold Bullion China Buys North Korea Gold Reserves As South Korea Increased Gold Reserves By 30%; Paraguay Buys First Time Today’s AM fix was USD 1,763.75, EUR 1,369.80, and GBP 1,089.07 per ounce. Silver is trading at $33.79/oz, €26.41/oz and £20.99/oz. Platinum is trading at $1,630.00/oz, palladium at $627.10/oz and rhodium at $1,075/oz.
Gold fell $3.10 or 0.18% in New [...] by Phoenix Capital Research
For several months now, I’ve been stating that the world’s central banks are in a bind. That bind is that their monetary policies are becoming less and less effective at placating the markets while the consequences of said policies (higher costs of living, the targeting of troubled banks in the credit market, etc.) are increasing.
As a result of this, central banks have begun resorting to more and more [...] NICOSIA, Cyprus — Cyprus says it has begun talks with officials from the European Union and the International Monetary Fund to gauge how much money it needs from the EU bailout fund for its troubled banks. Read more: http://www.cbsnews.com/8301-505245_162-57465536/cyprus-starts-bailout-talks-with-eu-imf-officials/ Angela Merkel: “The details affecting liability… will have to be discussed… those negotiations are going to be anything but easy” Germany’s Chancellor Angela Merkel says she is satisfied with a deal to help finance debt-laden eurozone countries. “I think we found a good compromise,” she said after all-night talks which saw her come under heavy pressure from Italy and Spain. A new supervisory body will enable the European Central Bank (ECB) to [...] Wall Street has already begun weighing in with negative opinions on the new European deal to use bailout funds—the European Financial Stability Facility and the future European Stability Mechanism—to recapitalize troubled banks in Europe, despite the positive reaction we’ve seen in the markets so far today. Morgan Stanley has criticized the plan as failing to take a “meaningful step forward.” The Bank of New York Mellon argues that this measure and others announced so far [...] Spanish Prime Minister Mariano Rajoy made a plea on Saturday for greater political and fiscal union in Europe, urging Greeks to stick with the euro as they gear up for an election whose outcome will shape the single currency’s future. Saying Spain’s business, banks and regional governments were struggling to finance themselves at current high borrowing costs, he urged Europe to integrate its banking system more closely, although he did not [...] by GoldCore
Today’s AM fix was USD 1,619.00, EUR 1,289.83, and GBP 1,044.65 per ounce. Gold climbed $7.20 or 0.45% yesterday in New York and closed at $1,618.80/oz. Gold traded sideways in Asia prior to a sudden buying bout which saw gold rise from $1,618/oz to $1,625/oz. Those gains have gradually been given up in European trading where gold is [...] MADRID (AP) — Spain could ask for a rescue of its troubled banks this weekend when European finance ministers hold an emergency conference call Saturday to discuss its hurting lending sector, a move that would turn the nation into the fourth from the 17-nation eurozone to seek outside help since the continent’s financial crisis erupted two years ago. The ministers will discuss a potential bailout for Spain as pressure mounted on [...] Source: NYT As European leaders grapple with how to preserve their monetary union, Greece is rapidly running out of money. Government coffers could be empty as soon as July, shortly after this month’s pivotal elections. In the worst case, Athens might have to temporarily stop paying for salaries and pensions, along with imports of fuel, food and pharmaceuticals. Officials, scrambling for solutions, have considered dipping into funds that are supposed to be for Greece’s [...] ATHENS: As European leaders grapple with how to preserve their monetary union, Greece is rapidly running out of money. Government coffers could be empty as soon as July, shortly after this month’s pivotal elections. In the worst case, Athens might have to temporarily stop paying for salaries and pensions, along with imports of fuel, food and pharmaceuticals. Officials, scrambling for solutions, have considered dipping into funds that are supposed to be for Greece’s troubled [...] Premier Mariano Rajoy said the country is “in an extremely difficult situation” and called on Europe to stand by the mutual obligations of euro membership. “Europe must say where it is going and show that the euro is an irreversible project that is not in danger, that helps nations in difficulty,” he told Spain’s senate. Treasury minister Cristobal Montoro confessed that Spain can no longer raise money. “The market is no [...] Spanish PM says other countries have a duty to support Spain but the banks need the support otherwise there will be global collapse (5.23 BST): Spain has admitted for the first time that it needs European Union support to prop-up its ailing banks, saying rising borrowing costs had shut the country out of bond markets. Cristobal Montoro, the Spanish Treasury minister, urged European institutions to “open up and help us”, saying the [...] The fact of the matter is that yields are plunging left and right. HOLY BAILOUT – Federal Reserve Now Backstopping $75 Trillion Of Bank Of America’s Derivatives TradesThis story from Bloomberg just hit the wires this morning. Bank of America is shifting derivatives in its Merrill investment banking unit to its depository arm, which has access to the Fed discount window and is protected by the FDIC. This means that the investment bank’s European derivatives exposure is now backstopped by U.S. taxpayers. Bank of America didn’t get regulatory approval to do this, they just did it at the request [...] WASHINGTON – The number of banks at risk of failing made up nearly 12 percent of all federally insured banks in the final three months of 2010, the highest level in 18 years. The Federal Deposit Insurance Corp said Wednesday that the number of banks on its confidential “problem” list rose to 884 in the October-December quarter, up from 860 in the previous quarter. Those are banks rated by examiners as [...] Whatever inflates will eventually deflate. It’s just a matter of time. For several decades the Fed and our government have deferred deflation. So now what is inevitable is not just mild deflation, but a deflationary crash. Steve Puetz has a great explanation: http://www.financialsensearchive.com/fsu/editorials/puetz/2009/0909.html “When the credit crisis struck last year, federal regulators pumped tens of billions of dollars into the nation’s leading financial institutions because the banks were so big that officials feared their [...] Reading people’s comments is how I get my REAL NEWS. Cheers, from Las Vegas, NV..USA…. |
Custom Search
    |
||||
|
Copyright © 2013 InvestmentWatch - All Rights Reserved |
|||||
The Good Bad and Ugly from the European Council
The short but important conclusions from the all night summit of Euro area leaders can be found here.
First the good news, four very important decisions were taken 1) A decision to eventually hand the European Central Bank direct supervision of Eurozone banks 2) A decision to allow, in principle, the European Crisis funds the EFSF/ESM to directly inject equity into troubled banks 3) A decision to waive seniority or preferred creditor [...]