Calls for 150 billion Euro bailout of European banks !

[midas]

Here is proof that the so-called economic “recovery “ after 2008 was a load of bo***s

Deutsche Bank chief economist calls for 150 billion Euro bailouts of European banks

In the aftermath of Brexit, much of the investing public's attention has turned to Italian banks which are in desperate need of a bailout as a result of €360 billion in bad loans growing worse by the day (and not a bail-in, as European regulations mandate, as that would lead to an immediate bank run) to avoid a freeze and/or collapse of Italy's banking sector. This has pushed stock prices - and default risk - on Italian banks to record levels. So far Italy's bailout requests have mostly fallen on deaf ears, as Germany's political leaders have resisted Renzi's recurring pleas for a taxpayer funded rescue. However, as we have alleged, and as the Italian Prime Minister admitted last week, the core risk for Europe is not just the Italian banking sector but the biggest bank of all in Europe: Deutsche Bank.

( English translation from the German newspaper )

http://www.welt.de/finanzen/article156924408/Deutsche-Bank-Chefoekonom-fordert-150-Milliarden.html

[worgeordie]

Blame it on Brexit,but the EU was starting to crumble ,long before that.

good job we got out or they would be asking the UK Govt. for money

to help foreign banks.

regards Worgeordie

[midas]

Blame it on Brexit,but the EU was starting to crumble ,long before that.

good job we got out or they would be asking the UK Govt. for money

to help foreign banks.

regards Worgeordie

Oh yes blame it on Brexit

the point is for how many years or decades is this pseudo-recovery going to go on for and how many bank bailouts will be needed?

[ExpatOilWorker]

Spain is in as bad shape as Italy, not to mention Greece of course. Portugal is doing OK......in football at least!

[mki8]

Blame it on Brexit,but the EU was starting to crumble ,long before that.

good job we got out or they would be asking the UK Govt. for money

to help foreign banks.

regards Worgeordie

UK has not even started the leaving process yet

so any bailouts they can put through before UK leaves

the UK is expected to pay up

right up until last day we are in EU

(which is 2 years after process is started)

so its no surprise they suddenly want a massive sum of money which the UK must contribute too

and lets not forget the brexit will be used as an excuse for next 20 years by EU and UK (and other countries) for whatever reason

Edited July 11, 2016 by mki8

[midas]

Blame it on Brexit,but the EU was starting to crumble ,long before that.

good job we got out or they would be asking the UK Govt. for money

to help foreign banks.

regards Worgeordie

UK has not even started the leaving process yet

so any bailouts they can put through before UK leaves

the UK is expected to pay up

right up until last day we are in EU

(which is 2 years after process is started)

so its no surprise they suddenly want a massive sum of money which the UK must contribute too

and lets not forget the brexit will be used as an excuse for next 20 years by EU and UK (and other countries) for whatever reason

I hope for England’s sake that wouldn’t apply also to bailing out what the IMF described just last week as “ the World’s Most Dangerous Bank “ (without even mentioning its $72 TRILLION "derivatives exposure" )

" many people fear Deutsche Bank could be the first horseman of a new financial apocalypse."

http://www.bbc.com/news/business-36723034

Edited July 11, 2016 by midas

[impulse]

Take $3 trillion in value out of the wealth of the financial markets and I have no doubt that every major bank in the world is furiously recalculating their capital reserve ratios, and digging through all their derivative exposure to see which ones are going to come back and bite them.

Next will be the loans called in and the projects cancelled because the banks can't meet their capital reserve ratios.

Deja Vu. All over again.

Just don't ask them to give back the bonuses they got when they bet heavily against Brexit. Because it's not gambling. Really, it's not.

Edited July 11, 2016 by impulse

[midas]

Take $3 trillion in value out of the wealth of the financial markets and I have no doubt that every major bank in the world is furiously recalculating their capital reserve ratios, and digging through all their derivative exposure to see which ones are going to come back and bite them.

Next will be the loans called in and the projects cancelled because the banks can't meet their capital reserve ratios.

Deja Vu. All over again.

Just don't ask them to give back the bonuses they got when they bet heavily against Brexit. Because it's not gambling. Really, it's not.

" Deja Vu. All over again. "

Yep

2007 All Over Again

chart from the St. Louis Fed that shows the US drifting back into yet another banking crisis.

http://dollarcollapse.com/the-economy/2007-part-5-banking-crisis-imminent/

Edited July 11, 2016 by midas

[BuaBS]

No bail outs , this time ! It's time for bail ins. And let the banks fail this time . They tried bail outs , it didn't work.

Confiscate all bankers wealth too , even what they stashed in their wife and childrens name.

[elgordo38]

Blame it on Brexit,but the EU was starting to crumble ,long before that.

good job we got out or they would be asking the UK Govt. for money

to help foreign banks.

regards Worgeordie

UK has not even started the leaving process yet

so any bailouts they can put through before UK leaves

the UK is expected to pay up

right up until last day we are in EU

(which is 2 years after process is started)

so its no surprise they suddenly want a massive sum of money which the UK must contribute too

and lets not forget the brexit will be used as an excuse for next 20 years by EU and UK (and other countries) for whatever reason

I hope for Englands sake that wouldnt apply also to bailing out what the IMF described just last week as the Worlds Most Dangerous Bank (without even mentioning its $72 TRILLION "derivatives exposure" )

" many people fear Deutsche Bank could be the first horseman of a new financial apocalypse."

http://www.bbc.com/news/business-36723034

You would never know the banks are in trouble when looking at the stock market. A tired Japanese government calls an election and the sheeple give it larger majority and the Nikkei goes up 900 points and the other Asian markets join in the party and the US market is extending the party as well. Edited July 11, 2016 by elgordo38

[elgordo38]

No bail outs , this time ! It's time for bail ins. And let the banks fail this time . They tried bail outs , it didn't work.

Confiscate all bankers wealth too , even what they stashed in their wife and childrens name.

Bail ins is when they confiscate your money and mine over a certain level. Don't think for a minute that banks will be held responsible for their greedy machinations.

[midas]

now we have an approximate timeline...............................

IMF warns Italy of two-decade-long recession

Eurozone’s third biggest economy may not recover from 2008 financial crash until mid-2020s, according the fund’s annual report

https://www.theguardian.com/world/2016/jul/11/imf-warns-italy-of-two-decade-long-recession

[BuaBS]

No bail outs , this time ! It's time for bail ins. And let the banks fail this time . They tried bail outs , it didn't work.

Confiscate all bankers wealth too , even what they stashed in their wife and childrens name.

Bail ins is when they confiscate your money and mine over a certain level. Don't think for a minute that banks will be held responsible for their greedy machinations.

YOUR money , not mine . I'm in no euro bank.

[Franky Bear]

Blame it on Brexit,but the EU was starting to crumble ,long before that.

good job we got out or they would be asking the UK Govt. for money

to help foreign banks.

regards Worgeordie

UK has not even started the leaving process yet

so any bailouts they can put through before UK leaves

the UK is expected to pay up

right up until last day we are in EU

(which is 2 years after process is started)

so its no surprise they suddenly want a massive sum of money which the UK must contribute too

and lets not forget the brexit will be used as an excuse for next 20 years by EU and UK (and other countries) for whatever reason

I thought it's up to us when we leave. The two year time frame is an EU directive if we don't leave before them. SO in a Laymen we could leave officially tomorrow and not be accountable to the EU????

[alocacoc]

Meanwhile the US markets just set new all time high.

[B1TcoinLife]

Blame it on Brexit,but the EU was starting to crumble ,long before that.

good job we got out or they would be asking the UK Govt. for money

to help foreign banks.

regards Worgeordie

UK has not even started the leaving process yet

so any bailouts they can put through before UK leaves

the UK is expected to pay up

right up until last day we are in EU

(which is 2 years after process is started)

so its no surprise they suddenly want a massive sum of money which the UK must contribute too

and lets not forget the brexit will be used as an excuse for next 20 years by EU and UK (and other countries) for whatever reason

I thought it's up to us when we leave. The two year time frame is an EU directive if we don't leave before them. SO in a Laymen we could leave officially tomorrow and not be accountable to the EU????

I don't think it's as simple as "we could just leave tomorrow morning and Fxxx the eu" lol

There is probably a lot of red tape procedural crap to go through and, yes, I think UK will have to contribute to Italy too...

[Franky Bear]

I don't think it's as simple as "we could just leave tomorrow morning and Fxxx the eu" lol

There is probably a lot of red tape procedural crap to go through and, yes, I think UK will have to contribute to Italy too...

I've not clue mate, it was a genuine question. The sooner we leave the better though.

[i claudius]

Will the E.U survive another 2 years for us to leave ?

[Naam]

Will the E.U survive another 2 years for us to leave ?

personally i wish that the EU dissolves as soon as possible. but i am convinced that i will not live long enough to see this happening and i am also convinced that there won't be a Brexit as envisioned by the Brexit hardliners.

[midas]

Deutsche Bank has a capital level of less that 3% (just like Lehman), and an incredibly risky asset base that boasts notional derivatives exposure of more than $70 trillion- roughly the size of world GDP. Lehman Brothers also had a capital ratio of less than 3% of its assets so when the value of its assets fell by more than 3%, the bank was finished.

Meanwhile nearly the entire Italian banking system is rapidly sliding into insolvency with Italian banks capital levels among the lowest in the world ( just ahead of Bangladesh )

Spanish banks have been scrambling to raise billions in capital to cover persistent losses that still haven’t healed from the last crisis while banks in Cyprus and Portugal are hemorrhaging cash and reporting widespread losses.

Edited July 14, 2016 by midas

[midas]

A floundering titan - Germany’s banking champion has neither a proper business model nor a mission

There is no obvious way out. Deutsche trades at about a quarter of the notional value of its net assets. If it were a non-financial firm it would be broken up. But big banks cannot be dismantled without risking chaos

http://www.economist.com/news/leaders/21702195-germanys-banking-champion-has-neither-proper-business-model-nor-mission-floundering-titan

Edited July 16, 2016 by midas

[midas]

First Italy, Now Portuguese Banks "Unexpectedly" Need A Taxpayer Bailout

According to the Financial Times Portuguese banks, already undercapitalised and loaded with bad debt, are bracing for even more heavy losses from Lisbon’s so far unsuccessful attempts to sell Novo Banco.

Estimates of the potential bill facing banks, which finance the resolution fund that bailed out Novo Banco in 2014, range from €2.9bn to €3.9bn. Some bankers are even doubtful that the rescued lender will attract any acceptable offers, leading to its possible break-up or liquidation.

In a recent report, Barclays estimated that Portuguese lenders could need up to €7.5bn to resolve a “systemic banking crisis” that was bringing the country under “close market scrutiny”.

In other words just like Italy "unexpectedly needs a €50 billion (to start) bailout, "suddenly" Portugal also seems to need a €7.5 billion (to start) bailout.

http://www.ft.com/cms/s/1a4894e2-5197-11e6-9664-e0bdc13c3bef,Authorised=false.html?siteedition=intl&_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F1a4894e2-5197-11e6-9664-e0bdc13c3bef.html%3Fsiteedition%3Dintl&_i_referer=http%3A%2F%2Fwww.zerohedge.com%2Fea44c2c638188144c9d7b1a2636c3160&classification=conditional_standard&iab=barrier-app#axzz4FPefiaK4

Edited July 25, 2016 by midas

[IMA_FARANG]

F-rk Dutchy bank (misspelling of name intentional).

Their so-called problems are due to their own greed.

That was one of the reasons for the Yes Brexit vote in the U.K.

Enough of the EU and the bankers Draghi-ing us down with their sinking Euro ship.

Have the bankers get themselves a real job, where they will actually have to work, not living like blood sucking leeches on other peoples money

Edited July 25, 2016 by IMA_FARANG

[IMA_FARANG]

No bail outs , this time ! It's time for bail ins. And let the banks fail this time . They tried bail outs , it didn't work.

Confiscate all bankers wealth too , even what they stashed in their wife and childrens name.

Bail ins is when they confiscate your money and mine over a certain level. Don't think for a minute that banks will be held responsible for their greedy machinations.

YOUR money , not mine . I'm in no euro bank.

---------------------------

Actually, neither am I, the your money thing was just for the reply.

[IMA_FARANG]

Spain is in as bad shape as Italy, not to mention Greece of course. Portugal is doing OK......in football at least!

_________________________

Don"t get me started about the Greek "bailout".

I was there, and most of the so-called "bailout money" for Greece ended up in German and French banks anyhow.

[midas]

tick tock............

Deutsche Bank Profit Plunges 98% And The Worst Is Yet To Come

the shares now trade for two thirds less than their tangible book value, a steeper discount than even during the depths of the financial crisis.

What is more troubling is that the worst is yet to come.

The biggest problem for DB remains its massive balance sheet. Morgan Stanley analysts calculated that Deutsche Bank has a €9 billion capital hole to fill by 2018, and that's not including damage caused by future litigation costs, which considering DB's record of pervasive capital rigging, are sure to rise.

http://www.bloomberg.com/gadfly/articles/2016-07-27/deutsche-bank-s-pain-looks-set-to-get-even-worse

Edited July 27, 2016 by midas