Jul 07

Here We Go Again——August 2007 Redux:

Nearly everywhere on the planet the giant financial bubbles created by the central banks during the last two decades are fracturing. The latest examples are the crashing bank stocks in Italy and elsewhere in Europe and the sudden trading suspensions by four UK commercial property funds.

If this is beginning to sound like August 2007 that’s because it is. And the denials from the casino operators are coming in just as thick and fast.

Back then, the perma-bulls were out in full force peddling what can be called the “one-off” bromide. That is, evidence of a brewing storm was spun as just a few isolated mistakes that had no bearing on the broad market trends because the “goldilocks” economy was purportedly rock solid. Continue reading »

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Jul 07

H/t reader squodgy.

Hmmh.

FYI.


Patriotic Ex-Special Ops Are Killing Bankers and It Is Going to Accelerate According to Inside Sources

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Jul 06

A Furious Italian Prime Minister Slams Deutsche Bank As Europe’s Most Insolvent Bank:

Several years ago, we were the first to point out the true “elephant in the room”, namely Deutsche Bank’s $75 trillion in derivatives which as we said at the time was about 20 times bigger than Germany’s GDP, and 5 times bigger than the entire economic output of the Eurozone.”

DB Derivs in context_0

This was largely ignored by the “experts” because why bring attention to something which is fundamentally a devastating break in the narrative that “Europe is fine” and the financial crisis is now contained.

Fast forward to today when Europe is once again not fine, only this time one can’t blame Europe’s problems on Greece (instead the same “experts” are trying to blame everything in Brexit), when in a surprising admission of reality, none other than Italy’s prime minister Matteo Renzi, “went there” and slammed Deutsche Bank as the true “derivative problem” facing Europe.

Continue reading »

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Jul 06

EU Banks Crash To Crisis Lows As Funding Panic Accelerates:

The signs are everywhere – if you choose to look – Europe’s banking system is collapsing (no matter what Draghi has to offer). From record lows in Deutsche Bank and Credit Suisse to spiking default risk in Monte Paschi, the panic in Europe’s funding markets (basis swaps collapsing) is palpable.

Tumbling to a fresh post-Brexit low, Europe’s Stoxx 600 Bank Index is testing EU crisis lows…

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Jul 05

A Look Inside Europe’s Next Crisis: Why Everyone Is Finally Panicking About Italian Banks:

Back in May 2013, we wrote an article titled “Europe’s EUR 500 Billion Ticking NPL Time Bomb” in which we laid out the biggest danger facing European banks: non-performing loans. As of this moment, that time bomb may have finally gone off: as the WSJ writes overnight, the Brexit damage to the rest of Europe “could be more immediate and potentially more serious. Nowhere is the risk concentrated more heavily than in the Italian banking sector.” Indeed, “Brexit could lead to a full-blown banking crisis in Italy.” Here’s why.

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Jul 05

Italy Bans Short-Selling Of Imploding Monte Paschi:

Having collapsed 99.7% from its July 2007 highs at EUR93, Banca Monte dei Paschi Siena – Italy’s 3rd largest bank – is in dire straits. And in confirmation that the fecal matter is about to strike a rotating object, Italian regulators just ‘temporarily’ banned short-selling of BMPS stock.

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Jul 05

Bank Of England Unveils First Easing Measures After Brexit:

In its first official easing act, the Financial Policy Committee lowered the countercyclical-capital buffer rate for UK exposures to zero from .5% of risk-weighted assets in a move that it said would raise the capacity for bank lending to households and businesses by as much as £150 billion. “This action reinforces the FPC’s view that all elements of the substantial capital and liquidity buffers that have been built up by banks are to be drawn on, as necessary” the committee said in a statement.

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Jul 01

Italy Just Bailed Out Another Failed Bank, May Use Pension Funds For Future Bank Rescues:

Despite – or perhaps due to – Italy’s failed attempt to slide a state-funded €40 billion recapitalization attempt past Angela Merkel while blaming it on Brexit, and coupled with a bailout proposal to provide €150 billion in liquidity to insolvent banks, overnight we got yet another confirmation that the biggest risk factor for Europe is not Brexit but Italy, where yet another failed bank was bailed out. As the FT reports overnight, Atlante, Italy’s privately backed €5bn bank bailout fund which was created in April to stem the threat of contagion from struggling lenders and whose assets turned out to be woefully inadequate, took control of Veneto Banca after a €1bn capital increase demanded by EU bank regulators attracted zero interest. Continue reading »

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Jun 30

Italy

“Needless to say, for Italy’s Prime Minister to be contemplating how to avoid “investor panic” and prevent a “run on deposits“, then Italian banks must truly be on the verge of collapse.”


Italy Granted “Extraordinary ” €150BN Bank Bailout Program To Prevent “Panic, Run On Deposits”:

As we noted today, the rumors of an Italian bank bailout, which started on Monday morning, and were promptly shot down by Merkel the next day, got louder today after a Reuters report that the government is considering more creative ways to inject liquidity into Italy’s banks. However that was just an appetizer to a main course, which came later today when as the WSJ reported citing a spokeswoman for the European Union’s executive arm that the “European Commission has authorized Italy to use government guarantees to create a precautionary liquidity support program for their banks.”  

How did this happen so quietly under the table and without Merkel’s blessing? WSJ says that the program was approved under the bloc’s “extraordinary crisis rules for state aid.”

And here we thought that Italy’s banks are actually doing so very well.  Oh wait, no we didn’t. Continue reading »

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Jun 30

deutsche-bank-lehman

World’s Most Systemically Dangerous Bank Crashes Back To Record Lows:

Despite all the exuberance over the Brexit bounce in US (and UK) equities, never minds bonds, FX, and credit being far less enthusiastic, Deutsche Bank is plunging once again this morning. Having failed The Fed’s stress test for the second year running and been diagnosed by The IMF as the world’s most systemically dangerous financial entity, the giant Germanbank is getting slammed down almost 4% today, back near record lows as its ‘Lehman-esque’ path to devastation continues.

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Jun 30

FYI.


Deutschedeutsche-bank-lehman

“Deutsche Bank Poses The Greatest Risk To The Global Financial System”: IMF:

Over three years ago we wrote “At $72.8 Trillion, Presenting The Bank With The Biggest Derivative Exposure In The World” in which we introduced a bank few until then had imagined was the riskiest in the world.

As we explained then “the bank with the single largest derivative exposure is not located in the US at all, but in the heart of Europe, and its name, as some may have guessed by now, is Deutsche Bank. The amount in question? €55,605,039,000,000. Which, converted into USD at the current EURUSD exchange rate amounts to $72,842,601,090,000….  Or roughly $2 trillion more than JPMorgan’s.” Continue reading »

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Jun 29

Germany Just Blew Up Italy’s Bank Bailout Plan:

Germany opposes any attempt to shield private bank investors from losses if Italy pushes ahead with plans to recapitalize lenders. Merkel’s government says that European Union rules on handling struggling banks should apply in any rescue effort, including forcing losses on shareholders and some creditors before public money can be injected. The government in Berlin rejects the argument that the U.K. vote to leave the EU constitutes an “exceptional circumstance.”

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Jun 29

There Is Now A Staggering $11.7 Trillion In Negative Yielding Debt:

It was not even a month ago when we last looked at the total amount of negative yielding debt around the globe, and were shocked to find that according to Fitch, for the first time in history (obviously), there was over $10 trillion in negative yielding debt. Fast forward 4 weeks later, and the grand total is now $1.3 trillion higher, or $11.7 trillion.

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Jun 28

The First Casualty Of Brexit: Italy Prepares €40 Billion Bank Bailout:

Barely has the market had time to digest last week’s Brexit vote by the UK, a vote which may never actually be implemented if the “sturm und drang” campaign unleashed by the EU and the ECB on UK capital markets succeeds in changing the mind of enough “Leavers” to the point that the entire referendum is called off and Boris Johnson never triggers the Article 50 clause, and already Europe’s most financially troubled nation, Italy, is using Brexit as a pretext to unleash a €40 billion ($44 billion) bailout of its insolvent banks. Continue reading »

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Jun 27

FYI.


Jim Rogers: Brexit Blowback “Worse Than Any Bear Market You’ve Ever Seen”

When it comes to being direct and offering up some truth, one can rest assured that Jim Rogers is a prime candidate to do both.

In an interview with Yahoo! Finance, the legendary investor had some candid and quite unnerving things to say about the global market in the aftermath of Brexit.

This is going to be worse than any bear market that you’ve seen in your lifetime. 2008 was pretty bad because of debt, well the debt all over the world is much, much higher now. Stocks in the US for instance have been going sideways for 18 months, 24 months. That’s called distribution by many people, so when you have distribution for a year and a half, it usually leads to bad things.”

If that was too upbeat, Rogers unveils his bear scenario: Continue reading »

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Jun 27

20160627_EOD

Bonds & Bullion Bid But Brexit Blowback Batters Banks

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Jun 27

UK PM Cameron To Tell Parliament “No Second Referendum” – Live Feed

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Jun 27

“It’s a F##king Bloodbath” – European Banking Stocks Collapse As UK Default Risk Spikes:

Traders are frantic this morning as George Osborne’s calming words have done nothing to halt the carnage. From Italian banks crashing over 25% to British banks being halted, trading at record lows, to Deutsche Bank extending its Lehman-esque trend, as one veteran stock market trader in London said, “it’s a f##king bloodbath, not even Draghi can save this one.” The contagion is spreading however as UK default risk has spiked to 3 year highs and USD liquidty needs are surging with funding markets seeing serious distress.

It’s everywhere…European Bank Stocks are down 23% in the last 2 days…

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Jun 26

24.06.2016

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Jun 26

24.06.2016

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Jun 24

Brexit-Lehman

Brexistential Bloodbath – Dow Crashes 600 Points As Vol Explodes

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Jun 24

“Worse Than Lehman” – European Bank Bloodbath Sparks Dollar Funding Crisis:

For European banks, today is worse than Lehman with a 13%-plus collapse in the broad index. The major banks – like Credit Suisse and Deutsche Bank – have crashed over 15% to record lows as “Lehman moments” loom. This crisis prompted massive demand for USDollars, sending basis swaps (and other funding vehicles) spiking which it appears is why The Fed said it was ready to provide liquidity.

The broad EU banking system is collapsing…

lehman

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Jun 24

BAML Admits Wrongdoing, Agrees To Pay $415 Million For “Misusing Customer Cash To Generate Profits”:

The SEC announced on Thursday that Bank of America’s Merrill Lynch unit admitted wrongdoing and has agreed to pay $415 million to settle charges that it “misused customer cash to generate profits for the firm.”

According to the statement, Merrill violated the SEC’s Consumer Protection Rule by misusing customer cash that rightfully should have been deposited in a reserve account, freeing up billions to finance its own trading activities as a result. Continue reading »

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Jun 22

More Banker Layoffs: RBS To Cut Another 900 Jobs:

Bank layoffs are now coming at a rapid pace in what is a clear sign of desperation by the firms to cut costs enough to keep shareholders happy as NIRP continues to hammer bank profits.

On the heels of Bank of America announcing that 8,000 employees would be fired last week, we now learn that RBS will be cutting 900 jobs as well, in areas such as IT and other back office positions that support the commercial, retail and private bank will be cut in Britain. The latest round of cuts takes the total number of layoffs in the last four months to roughly 5% of the bank’s british workforce, as at least 2,700 staff across the country have been let go since the beginning of March according to Reuters. Continue reading »

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Jun 22

***

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Jun 21

Jun 16, 2016

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Jun 21

Why A UK Billionaire Believes Brexit Would Be “Good For The UK”:

The City of London and the pound would both benefit from the U.K. leaving the EU, says billionaire Peter Hargreaves. Brexit may knock the pound initially, but it would rebound, the co-founder of Hargreaves Lansdown — the largest U.K. retail broker, with more than $84.1 billion equivalent in assets — told Bloomberg Briefs’ Geoff King in a June 17 interview.

Q: Why do you support “Leave”?

A: Every year in the EU it gets more political, it gets more legislative, more regulative; we don’t seem to get very much benefit from it. We will be far better out.The EU as an economic mark is declining in the world, when there were only nine countries in it was 30 percent of the world’s GDP, now there are 28 it is only 17 percent. That’s some serious decline. Other countries that are growing — India, parts of Africa, Brazil, China and even Russia — are the places we should be trading with.

Q: How do you counter strong economist/analyst support to remain? Continue reading »

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Jun 21

Regulator Alleges Sweden’s Largest Bank Has $9.7 Billion Capital Shortfall:

Sweden’s largest bank is under pressure today after Svenska Dagbladet reported an internal document from Sweden’s Financial Supervisory Authority indicates that Nordea bank had a capital shortfall of $9.7 billion at the end of last year. Newspaper Svenska Dagbladet published an article that alleges an analyst at Sweden’s FSA had discovered that internal bank models used to assess risk of loss on its loan portfolio had understated risk by as much as half at the end of last year

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Jun 21

Role Of Irelands Central Bank In 7 Billion Banking Fraud Revealed

Role Of Ireland’s Central Bank In €7Billion Banking Fraud Revealed:

It seems that the Central Bank were aware of fraudulent transactions at Irish Life and Permanent and Anglo Irish Bank.

Newly uncovered files have revealed that the €7 billion fraud that led to three bankers being criminally convicted earlier this month was “potentially based on encouragement” from Ireland’s Central Bank.

The state knew that the two banks were helping each other out

Tom Lyons reports via The Sunday Business Post : Continue reading »

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Jun 19

Jun 13, 2016

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