Cologne Institute of German Business Warns of Deposit Protection May Not Survive in Europe

 

The Cologne Institute of German Business sees in the planned European deposit insurance is simply incapable of proving protection against a bank crash in Europe. The EU deposit guarantee is simply not practical under any concept of austerity. The Eurozone still has inherent significant risks in the balance sheets of European financial institutions. This is primarily because where the USA took the bad loans from the banks and stuffed them into Freddie and Fanny, in Europe, the bad loans are still on the books of the banks. Systemically, this has been the leading problem why Europe has been unable to recover and Quantitative Easing merely robber savers of their income and it failed completely to stimulate the economy. Banks were still reluctant to lend and people would not borrow if they did not have confidence in the future.

EU Plan Lets Banks Take Deposits in Crisis

The European Central Bank has unveiled a new set of banking plans that will allow failing banks to freeze their deposits in the event of an economic catastrophe to prevent further bank failures.

 

The European Central Bank has unveiled a new set of banking plans that will allow failing banks to freeze their deposits in the event of an economic catastrophe to prevent further bank failures.

Expert Jim Rogers Says US is Desperate for Deutsche Bank Funds

The main reason the US government wants $14 billion in penalties from the German bank is that it is deep in debt. They’ve got a gigantic deficit – they are desperate for money. They’ll try to get it anywhere they can, Jim Rogers, financial commentator and investor, told RT.com.

Germany’s Deutsche Bank reportedly failed to reach an agreement with the US on settling a massive fine. The bank is facing a $14 billion fine penalty from the US Justice Department for mis-selling mortgage securities in the run-up to the 2008 financial crisis.

Deutsche Bank Chief Economist: DB Collapse Could Lead to the Next Great Depression

Despite being the fourth-largest bank in Europe with over $2 trillion in assets, Deutsche Bank’s (NYSE: DB) collapse is a huge possibility.

It simply doesn’t have the free cash flow necessary to pay the $5.4 billion Department of Justice settlement issued on Sept. 30. Currently, Deutsche Bank reports its free cash flow as $2.4 billion as of June.

Germany’s BIGGEST Bank ON BRINK: Deutsche Bank hits RECORD LOW as Merkel rules out bailout

DEUTSCHE Bank shares have reached their lowest level in more than two decades, as fears flare over the troubled firm’s future.

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Deutsche’s value has now plunged by more than half this year, as concerns over low interest rates and the struggling eurozone economy also plauge the bank.

Chris Beauchamp, chief market analyst at trading platform IG, said: “The parlous state of Deutsche Bank exploded onto everyone’s radar once again.

GREEK NIGHTMARE: Athens’ crippled economy could DESTROY the Eurozone and SPARK GREXIT

GREECE’S troubled economy remains crippled with its citizens paying the price – one year on from the financial meltdown which pushed the eurozone to the brink.

Austerity measures slapped on the country by Brussels in return for a third bailout have meant stringent tax rises and harsh spending cuts.

Yet there is little sign that a recovery is in sight and many feel another disaster is looming.

Unemployment is close to 24 per cent.

EU Banks Need $166 Billion, Deutsche Bank Economist Tells Welt

Let us not forget about the monstrous derivative exposure of Deutsche Bank: $72.8 trillion. They’re looking like the next Lehman Brothers.

Video available for viewing at website.

 

Europe urgently needs a 150 billion-euro ($166 billion) bailout fund to recapitalize its beleaguered banks, particularly those in Italy, Deutsche Bank AG’s chief economist said in an interview with Welt am Sonntag.

“Europe is extremely sick and must start dealing with its problems extremely quickly, or else there may be an accident,” Deutsche Bank’s David Folkerts-Landau said, according to the newspaper. “I’m no doomsday prophet, I am a realist.”

US banks not prepared for another financial crisis, say federal regulators

We also shouldn’t forget that the FDIC is helpless and broke itself, which compounds the problem and shows a double standard on their part. They FDIC will ironically be the one raiding the banks during the next crisis but like to heap burden on them because passing blame is the game today.

 

Five out of eight of the biggest US banks do not have credible plans for winding down operations during a crisis without the help of public money, federal regulators said on Wednesday. Photograph: Mike Blake/Reuters

 

Some of the US’s biggest banks still lack a proper plan for bankruptcy, in the event of another major financial crisis, US regulators said on Wednesday.

In the wake of the great recession banks were required to come up with “living wills” to prove they had a credible plan for bankruptcy that would not require another bailout from the taxpayers.

Greece misses bailout deadline as talks with creditors drag on

The deadline to dispense further rescue loans to debt-stricken Greece was extended by eurozone countries once again on Sunday amid continuing deadlock between Athens and its creditors.

With negotiations still bogged down over failure to agree on a new foreclosure law – legislation the leftist-led government says would push austerity-hit Greeks over the edge – lenders postponed a critical Eurogroup Working Group until Tuesday.

Greece election: Alexis Tsipras is the clear winner but still needs coalition partner for Syriza

Expect Greece to be a complete vassal state now that Alexis has sealed victory.

 

The campaign was a cliffhanger, but Alexis Tsipras is celebrating a second election victory, won despite months of turbulence and a disastrous policy U-turn which saw him abandon his attempt to defy Brussels and instead sign up for another harsh Brussels bailout.

Despite a strong campaign by its new leader Vangelis Meimarakis, the conservative New Democracy party improved only slightly on its performance in January, and with 50 per cent of the vote counted, was trailing Mr Tsipras’s Syriza by 28 per cent to 35.5 per cent.

Greek bailout terms to give eurozone vast powers over policymaking

As predicted here for years, Greece will become the vassal state of a German-dominated Europe ran through the Troika. All roads lead to Berlin and its Fourth Reich. In the medium-term, look for more nations to be subjugated like Cyprus and Greece. They will be destroyed and rebuilt in order to form a United States of Europe.

 

The Greek government is to surrender powers over vast areas of economic and social policymaking to its eurozone creditors under draconian terms agreed for a new three-year bailout.

The 29 pages of conditions concede ultimate authority over much of Greek policymaking to the eurozone and establish a system of quarterly reviews of the reforms by the troika of institutions – the European commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) – representing the creditors.

Italy’s Pier Carlo Padoan calls for ‘political union’ to save euro

A United States of Europe with Germany’s Fourth Reich at the helm is coming.

Countries such as Italy and France will just toe the line and join. Unlike Greece and Cyprus who were forced to join the club, the corrupt Italian and French leaderships are either too scared to go against the grain after Athens has just had an example made of it, or they’re in on the scheme.

 

Italy’s finance minister has called for deeper eurozone integration in the aftermath of the Greek crisis, saying a move “straight towards political union” is the only way to ensure the survival of the common currency.

Pier Carlo Padoan’s comments reflect how the tortured and dramatic negotiations that led to this month’s deal on a third bailout of Greece have triggered a round of soul-searching about the future of monetary union across European capitals.

“The exit and therefore the end of irreversibility is now an option on the table. Let’s not fool ourselves,” he said in an interview in his central Rome office. “If we want to take that risk away, then we have to have a different euro — a stronger euro.”

EU Council President Donald Tusk Warns of Revolution in Europe

EU Council President Donald Tusk from Poland is shocked by the fierce debate over the Greek bailout in the EU Parliament. He told the FT: “It was the first time that I have seen radical with such emotions. It was almost half the European Parliament. Therefore, I believe that no one is a political winner in this process, not even Germany. “

Greece Eurocrisis Reveals That Germany Rules Europe

The way that Greece has been manhandled this past week is exposing a new Germany.

Over the past week, we have seen the clearest, most naked display of German aggression since the end of World War ii. Germany, of course, has been ruling the eurozone for years. Der Speigel even called Germany the new “Fourth Reich” earlier this year. But for the most part, Germany has concealed its dominance behind a fig leaf of consensus.

That ended this week.

Why Did Schauble Almost Use The “Nuclear Option” – Tim Geithner Explains

While a Greek (pre) deal in some format was largely expected this weekend (especially following the unprecedented humiliation of Greece that would allow the Troika to repay… the Troika) the biggest stunner from the past 48 hours was Schauble’s insistence (which as we subsequently learned had been coordinated with Merkel) that either Greece accepts draconian terms which will strip the country of its sovereignty, or it will suffer a 5 year “time out” from the Eurozone.