Draghi Says Anyone Leaving the EU Must Pay But EU Will Not Refund Surpluses

 

In the Netherlands, the Forum For Democracy leader Thierry Baudet confronted Mario Draghi of the ECB asking that since he had said anyone leaving must pay the ECB and exit fee of whatever they owe, he said the Netherlands had €100bn surplus at the ECB they should get back is. Mario Draghi stated bluntly, NO! In other words,  the view at the ECB is what is yours is their’s and what is theirs is theirs.  We have put together a very important report on the Euro covering all the issues and why it is really doomed. Continue reading

Warning: New Stock Market Crash Indicators Flashing in China

The International Monetary Fund just issued a dire new warning to China, and it has many fearing a possible stock market crash in 2016.

The IMF warned that growing corporate debt in China is an intensifying problem. They continued saying the debt must be immediately tackled if the Asian nation wants to avoid harming itself and the global economy.

The IMF, an international organization of 189 countries headquartered in Washington, D.C., issued that warning over the weekend. The main goal of the IMF is to promote international financial stability and sustainable economic growth. Continue reading

It Begins: One European Bank Fails, Another One Needs An Urgent Cash Injection!

Interesting news this week as Belgium-based Optima Bank has been shut down by both the National Bank of Belgium (which also acts as the Belgian regulating body) as well as the ECB. According to the national supervisor, the bank  would have been unable to meet its commitments to its clients and was forced to cease all banking activities after some potentially fraudulent transaction were unveiled.

It’s surprising to see the main media have tried to keep this silent as even the website of the National Bank of Belgium didn’t bother to issue the press release in English (whereas all other press releases on the home page can be read in English). There’s no statement from the ECB either, nor has this news been translated on the English version of website of the state-owned national television station. Continue reading

Europe’s Banks Begin to Fail

Guess who did eventually bail out Greece.

An article from 2011 with lessons to learn from for today:

 

A chain reaction is set in motion—and a lot of people are going to get hurt.

The date is May 11, 1931. Creditanstalt, a little-known Austrian bank, suddenly announces it can’t make its debt payments. An unstoppable chain reaction results.

Bank failure, stock market crash, mass business closures, 25 percent unemployment, trade wars, runaway inflation, multiple currency collapses, the Great Depression, World War ii. All of it began with a little-known bank in a small country in the heart of Europe.

That is history. And it is happening again.

A similar epoch-changing event may be about to occur in Europe.

Continue reading

Bail-Ins Coming – EU Gives Countries Two Months To Adopt Rules

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– 11 countries face legal action if bail-in rules are not enacted within two months
– Bail-in legislation aims at removing state responsibility when banks collapse
– Rules place burden on creditors – among whom depositors are counted
– Austria abolished bank deposit guarantee in April
– “Bail-in regimes” coming globally


The European Commission has ordered 11 EU countries to enact the Bank Recovery and Resolution Directive (BRRD) within two months or be hauled before the EU Court of Justice, according to a report from Reuters on Friday.

The news was not covered in other media despite the important risks and ramifications for depositors and savers throughout the EU and indeed internationally.

The article “EU regulators tell 11 countries to adopt bank bail-in rules” reported how 11 countries are under pressure from the EC and had yet “to fall in line”. The countries were Bulgaria, the Czech Republic, Lithuania, Malta, Poland, Romania, Sweden, Luxembourg, the Netherlands, France and Italy. Continue reading

The real sign that Greece’s financial turmoil is getting worse

Here is a slightly surprising sign that Greece is in the classic throes of a bank run: car sales jumped by 47pc in April. It was the 20th consecutive month that car registrations of new and used vehicles has risen.

People living in a country gripped by financial turmoil often worry about the security of their money. If it’s in a bank, it can be caught up in capital controls and lost through insolvency. Better, then, to spend it. And the purchase of choice is often a car. Continue reading

Bank of England stress tests to include feared global crash

 

The Bank of England is to impose a series of tests on major UK banks to establish whether they are able to withstand a dramatic slowdown in China, a contraction in the eurozone, the worse deflation since the 1930s along with a fall in UK interest rates to zero.

The Co-operative bank – which failed last year’s tests – is no longer included in the annual assessments of the industry’s financial strength as it is too small, leaving six banks and the Nationwide building society to be tested. Continue reading

Banking crisis in Russia will be massive — Sberbank CEO

MOSCOW, January 14. /TASS/. The banking crisis in Russia in the current economic situation will be massive, CEO of Russia’s largest lender Sberbank German Gref said on Wednesday. Continue reading

Goldman Sachs executive foreshadows next financial crisis

The second most senior Goldman Sachs executive has warned the world risks sowing the seeds of the next financial crisis through regulation aimed at making banks safer.

Gary Cohn, the global chief operating officer of the Wall St bank, today highlighted the risks of rules forcing banks to hold larger capital buffers so they can absorb bigger losses.

Speaking in Sydney, Mr Cohn said that in forcing banks to hold more capital, regulators risked encouraging the unregulated “shadow” banking sector, so it became the next problem. Continue reading

EU to decide who pays when banks fail

The European Union will seek on Friday to forge rules to force losses on large savers when banks fail, a sensitive reform that could shape how the euro zone deals with its sickly banks.

Finance ministers in Luxembourg will try to resolve one of the most difficult questions posed by Europe’s banking crisis – how to shut failed banks without sowing panic or burdening taxpayers. Continue reading

Risk of Bank Failures Is Rising in Europe, E.C.B. Warns

The European Central Bank warned on Wednesday that the euro zone’s slumping economy and a surge in problem loans were raising the risk of a renewed banking crisis, even as overall stress in the region’s financial markets had receded. Continue reading

Jim Sinclair: Entire US Banking System Missed a Bail-in Collapse by a Hair Tuesday!

Jim Sinclair states this morning that the entire US and Western banking system just missed a complete collapse and full bail-in by a hair’s length at the end of the Memorial Day Weekend.

Full details on the US banking system’s narrow miss of a complete systemic collapse and a full banking holiday Tuesday are below:

The entire Western World banking system just missed the need for a bail-in by a hairs length.

The next crisis in finance in North America will be a product of the FASB, the Guardians of Auditing, allowing banks to value OTC derivative paper at whatever the bank wishes. This is a camouflaged black hole loss unstated that Western Banking system deposits could fall into to disappear partially or wholly, made up of your deposits. Washington made moves to override the CFTC, mandating proper valuations which the FASB has run away from. Had the banks been required by the CFTC to value these derivatives at anything resembling a real market (there isn’t any markets for the legacy OTC derivatives of 1991 to 2008), we would have had another banking crisis in the USA on Tuesday after Memorial Day. The USA just missed another banking crisis by a hair’s length. Next time it will be closer. Continue reading