One day after Germany’s second largest lender confirmed reports of a massive restructuring when it announced it would lay off nearly 10,000 employees, or about 20% of its entire workforce while slashing the bank’s dividend for the rest of the year, the Dutch newspaper Het Financieele Dagblad reported that ING Groep, the largest Netherlands lender, will announce thousands of job cuts at its investor day on Monday.
It is not solvency, or the lack of capital – a vague, synthetic, and usually quite arbitrary concept, determined by regulators – that kills a bank; it is – as Dick Fuld will tell anyone who bothers to listen – the loss of (access to) liquidity: cold, hard, fungible (something Jon Corzine knew all too well when he commingled and was caught) cash, that pushes a bank into its grave, usually quite rapidly: recall that it took Lehman just a few days for its stock to plunge from the high double digits to zero.
It is also liquidity, or rather concerns about it, that sent Deutsche Bank stock crashing to new all time lows earlier today: after all, the investing world already knew for nearly two weeks that its capitalization is insufficient. As we reported earlier this week, it was a report by Citigroup, among many other, that found how badly undercapitalized the German lender is, noting that DB’s “leverage ratio, at 3.4%, looks even worse relative to the 4.5% company target by 2018” and calculated that while he only models €2.9bn in litigation charges over 2H16-2017 – far less than the $14 billion settlement figure proposed by the DOJ – and includes a successful disposal of a 70% stake in Postbank at end-2017 for 0.4x book he still only reaches a CET 1 ratio of 11.6% by end-2018, meaning the bank would have a Tier 1 capital €3bn shortfall to the company target of 12.5%, and a leverage ratio of 3.9%, resulting in an €8bn shortfall to the target of 4.5%.
Instead of doing what many have correctly suggested he should be doing, namely focusing on ways to raise more capital for the undercapitalized Deutsche Bank in order to stem the slow (at first) liquidity leak, first thing this morning CEO John Cryan issued another morale-boosting note to employees of Deustche Bank who have been watching their stock price crash to another record low, dipping under €10 in early trading for the first time ever. In the memo the embattled CEO worryingly did what Dick Fuld and other chief executives did when they felt the situation slipping out of control, namely blaming evil “rumor-spreading” shorts, saying “our bank has become subject to speculation. Ongoing rumours are causing significant swings in our stock price. … Trust is the foundation of banking. Some forces in the markets are currently trying to damage this trust.”
Just as important, Cryan confirms the Bloomberg report that “a few of our hedge fund clients have reduced some activities with us. That is causing unjustified concerns.” As we explained last night, the concerns are very much justified if they spread to the biggest risk-factor for the German bank: its depositors, which collectively hold over €550 billion in liquidity-providing instruments.
Three months later, the shredders are back…
… and this time they are joined by a friend: a van belonging to a professional demolition and dismantling service, which incidentally is parked right in front of the NY Fed’s master cargo door which among other places, leads to NY Fed’s gold vault.
Things must be getting serious if just using BleachBit won’t fix it.
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H/t reader squodgy:
“Just can’t work out how grown men, who for years have pledged peace are now determined to have a stand off for obliterating each other and maiming every living creature.
Stupid doesn’t even begin to describe this. One can only assume the Rothschilds have kidnapped their grandchildren & are threatening to kill them if they don’t comply, because what would be left when it’s all over is nothing. Just destruction & distortion of the human genome. Pointless.”
Barely acknowledged by the Western media. both Russia and America are “rearming” their nuclear weapons systems. While the US is committed to a multibillion dollar modernization project, Russia is largely involved in a “cost-effective” restructuring process which consists in decommissioning parts of its land-based ICBM arsenal (Topol) and replacing it with the more advanced Yars RS-24 system, developed in 2007.
While a new arms race has “unofficially” been launched, the US modernization process pertains to the all three legs of the triad system, -i.e land based airborne and submarine launched atomic missiles. It is also coupled with the development of the B61-12 tactical bomb to be deployed in Germany, Italy, Netherlands, Belgium and Turkey.
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Incoming migrants are bringing long-eradicated diseases to Germany and are putting the medical system under extreme stress.
As well as bringing a rising tide of crime and attitudes towards women that many consider incompatible with modern European values, the over one and a half million migrants who flowed into Germany last year have also brought unheard-of and rare strains of diseases to the continent. The new arrivals and their illnesses are putting pressure on the German health care system, reports Frankfurter Allgemeine Zeitung.
U.S. Presidential candidate Hillary Clinton has named German Chancellor Angela Merkel as her favourite world leader, choosing specifically to praise her record on the migrant crisis — despite her policies on opening Europe’s borders now providing a source of immense regret for her party and Germany.
The comments were made during a question and answer session on board Mrs. Clinton’s campaign aeroplane in Chicago yesterday, when a member of the press asked what the presidential candidate’s favourite world leader is. Initially leaving her answer quite open, remarking: “Look, I like a lot of the world leaders”, Mrs. Clinton then settled on Germany’s imperiled Chancellor Angela Merkel.
What will prevent TPTB from taking over all of that gold after the financial system has collapsed and there is total chaos everywhere?
For decades, Switzerland had a reputation for bank secrecy that made it the most sought after tax haven for billionaires from around the globe. But, after more than 80 years of secrecy, a series of bilateral agreements with countries around the world, including America’s Foreign Account Tax Compliance Act (FATCA), have forced the private-banking industry in Switzerland to embrace an entirely new era of transparency that requires a full exchange of tax-relevant information with more than a hundred countries.
Which, as Bloomberg points out, has been a huge boon for Swiss operators of private vaults which are not subject to the same transparency and reporting requirements as banks. In fact, these super-secret, privately operated storage facilities buried around the Swiss Alps can basically store anything from anybody because they’re not even required to report suspicious activity to Switzerland’s Money Laundering Reporting Office.
For years the political elites, backed by funding from George Soros, have fought common sense voter ID laws as blatant attempts of racist right wingers to suppress the votes of minority and low-income citizens. These same people tirelessly argue that there is no evidence of voter fraud despite the mountain of facts that keeps piling up the contrary. In fact, per the National Review, United States District Judge Lynn Adelman of Wisconsin, in response to a voter ID complaint in that state, recently claimed that “virtually no voter impersonation occurs” in Wisconsin and that “no evidence suggests that voter-impersonation fraud will become a problem at any time in the foreseeable future.”
VIENNA, Austria — During a mass brawl between migrants from Chechnya and Turkey in the Austrian capital a passerby was pushed into the path of an oncoming tram.
The victim, a Serbian man, was struck by a tram when one of the brawlers pushed him onto the tracks, reports Austrian paper Kronen Zeitung.
The Serbian sustained severe injuries with his legs being directly hit by the oncoming tram at the intersection of Knöllgasse and Quellenstraße in Vienna’s Favoriten district. The Favoriten district is well known for its high population of migrants from Turkey, Chechnya, and the Balkan states and is a low-income area.
It is unclear what caused this Frenchman to walk into an Apple store and crush every single iPhone in site with a metal ball bearing but that is exactly what he decided to do. Perhaps he was one of the unfortunate victims of a spoof video that apparently succeeding a convincing people to drill a headphone jack in their new iPhone 7?
— Shiny Apples UK (@Shiny_Apples) September 30, 2016
Luckily for the iPhone smasher, this event occurred in France where security guards quickly surrendered the store and allowed the man to simply walk out and go on his merry way.
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The world’s most entertaining, Tourette syndrome-plagued president, Philippines Rodrigo Duterte has just sparked another scandal.
As a reminder, one week ago, in his latest outburst, Duterte stunned reporters and officials when he responded to Europe’s condemnation of his government’s brutal anti-crime crackdown, when after an EU statement urged Duterte to put an end to the “extrajudicial killings” and launch an alternative campaign in line with international human rights laws, the president did not hold back in his response to Brussels and during a speech said: “I read the condemnation of the EU against me. I will tell them: ‘Fuck you.’ “You’re doing it in atonement for your sins.”
He accused the bloc of hypocrisy, saying a rudimental check of the history books showed European countries had killed thousands of people in the past. “He added: And then the EU has the gall to condemn me. I repeat: “Fuck you.”
Fast forward one week, when Duterte compared himself to Adolf Hitler on Friday, and said he would “be happy” to exterminate three million drug users and peddlers in the country.
In yet another rambling, disjointed speech on his arrival in Davao City after a visit to Vietnam, Duterte told reporters that he had been “portrayed to be a cousin of Hitler” by critics. Explaining that Hitler had murdered millions of Jews, Duterte said: “There are three million drug addicts (in the Philippines). I’d be happy to slaughter them.
“If Germany had Hitler, the Philippines would have…,” he said, pausing and pointing to himself. “You know my victims. I would like (them) to be all criminals to finish the problem of my country and save the next generation from perdition.”
- In 2001 alone, 54,000 people “attacked” the Channel Tunnel terminal in Calais and 5,000 had gotten through.
- Migrants evicted from Calais moved to Paris and established a massive squatter camp at the Jardins d’Eole, a public park near the Gare du Nord station, from where high-speed Eurostar trains travel to and arrive from London. The area has become a magnet for human traffickers who charge migrants thousands of euros for fake travel documents, for passage to London.
- The President of the Alpes-Maritimes region, Eric Ciotti, criticized the government’s “irresponsible” plan to relocate migrants in Calais to other parts of France. He said the plan would “proliferate a multitude of small Calais, genuine areas of lawlessness that exacerbate lasting tensions throughout the country.”
- A whistleblower reported that volunteer aid workers at “The Jungle” were forging sexual relationships with migrants, including children. “Female volunteers having sex enforces the view (that many have) that volunteers are here for sex,” he said.
French President François Hollande has vowed “definitively, entirely and rapidly” to dismantle “The Jungle,” a squalid migrant camp in the northern port town of Calais, by the end of this year.
H/t reader squodgy:
Take away the right of free speech & protest at unacceptable Government & you get Tyranny.
Whilst I don’t personally consider a Pit Bull a beautiful example of Canis, and have to admit it is probably quite a weapon if used properly, the worrying aspect of this latest interfering bureaucratic nonsense, this time in Canada, is that they’ll be banning German Shepherds, Rotts & Dobermans if this is deemed successful, and once again the people will be defenceless as Society crumbles and we turn on ourselves as the scum plan. All in increments.”
Montreal, CA – The city council of Montreal recently voted to ban ownership of pit bulls, causing outrage from dog lovers everywhere.
The measure was voted by a 37-23 majority, in response to controversy caused by a random dog attack, which was an isolated incident.
Mayor Denis Coderre issued a statement after the vote saying, “My duty as mayor of Montreal is making sure I am working for all Montrealers. And I am there to make sure they feel safe and that they are safe.”
The US government, much to the chagrin of Senator Ted Cruz, is set to officially relinquish the Department of Commerce’s oversight of the Internet Corporation for Assigned Names and Numbers (ICANN) as of tomorrow night at midnight. ICANN is a California nonprofit that has supervised website domains since 1998, essentially under subcontract from the Commerce Department. Under the Obama transition plan oversight by the U.S. Commerce Department would end and be replaced by a multi-stakeholder community, which would include the technical community, businesses, civil society and governments.
Cruz had attempted to block the internet transition by tying the recently passed funding bill to the reversal of the ICANN turnover. That said, apparently his harsh admonishments on the Senate floor failed to draw enough support from his fellow republicans to force a government shutdown over the topic.
“In 22 short days, if Congress fails to act, the Obama administration intends to give away control of the Internet to an international body akin to the United Nations,” Sen. Cruz said. “I rise today to discuss the significant, irreparable damage this proposed Internet giveaway could wreak not only on our nation, but on free speech across the world.”
H/t reader squodgy:
“I think that unless Vlad has something up his sleeve, we’re all doomed.”
Kirby from The US State Department recently stated that more Russians will go home in body-bags and that the US may back-up the “vacuums” left in Syria due to the Russian and Syrian push to take Aleppo. Well the US has made good on its threat by insuring a third party sent the Moderate Rebels Grad launchers that are now being used against the Syrian Army.
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