Posts Tagged ‘no more bailouts-put banks into receivership’
Posted by seumasach on March 19, 2023
Alastair MacLeod
Goldmoney
16th March, 2023
Following the day-to-day twists and turns of a banking crisis can make us lose sight of the bigger picture. It is tempting to think that the banking authorities are in control, and they will secure the integrity of their commercial banking networks. Unfolding events may or may not prove this to be true.
The bigger picture is that the forty-year decline in interest rates is over, as well as the financial bubble that has built up with it. And we should also be aware that there is a cycle of bank credit, the downturn of which is long overdue. The two have come together to create chaos in credit markets
The reality is that central banks have already lost control over monetary policy and interest rates. Interest rates are now being driven by contracting bank credit, not by monetary policy. The point which is commonly missed is that contracting credit at a time when credit demand is still increasing inevitably leads to higher interest rates and bad debts.
Having lost control over interest rates, the Fed has been forced into its much-heralded pivot, not by reducing interest rates, but by offering to buy Treasury and Agency debt at face value whatever the coupon and maturity. This rescues banks from the immediate fate that collapsed Silicon Valley Bank. And it makes it easier for the US Treasury to fund its deficit while containing borrowing costs.
But it is highly inflationary.
The pivot has now been made. The Fed has decided to rescue financial markets at the expense of the currency. Other central banks can be expected to follow suit to help rescue their banking systems. But in the process, they are writing the death warrants for their fiat currencies.
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Posted in Financial crisis | Tagged: dollar collapse, end of dollar as global reserve currency, financial collapse, no more bailouts-put banks into receivership | Leave a Comment »
Posted by seumasach on February 29, 2016
Dan Glazebrook
RT
27th February, 2016
Anyone following David Cameron’s negotiations with the EU, or the subsequent ‘in-out’ referendum debate in Britain, would perhaps forgiven for believing that migration is the cause of all Britain’s woes.
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Posted in UK economy | Tagged: bail out swindle, Bail-in not bail-out!, Cancel PFI debt!, no more bailouts-put banks into receivership, private finance initiative(PFI) | Leave a Comment »
Posted by seumasach on February 29, 2016
It’s risky choice for the interests of those British banks and hedge funds, backed by the Murdoch press, in particular, who are calling for Brexit. They know that the deal Cameron negotiated pathes the way for Michel Barnier’s planned bail-in program for the European banking sector, with no British veto on financial regulation, and that the likes of Barclays, RBS and TSB will likely be first in line for bail-in. That means that shareholders and creditors will lose out this time rather than being bailed out as in 2008. What is really interesting about this is that a section of the British elite, led by Cameron and Osbourne, accepts the demise of these British financial interests, that they accept the inevitable. What remains is a global reset, a new global financial system which is no longer controlled by the West, and the refoundation of the financial system on a new basis. It is not hard to see why there has to be a referendum on this revolution even though the stakes are not being explained to the British people.
Boris Johnson
Telegraph
19th February, 2016
Are you frit? Are you frightened? Have they spooked you yet? It is now obvious that the Remain campaign is intended to provoke only one emotion in the breast of the British public and that is fear.
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Posted in British economy | Tagged: european bank "bail-in", Michel Barnier, new global financial system, no more bailouts-put banks into receivership | Leave a Comment »
Posted by seumasach on February 18, 2016
“We cannot tolerate a financial system in which some firms are too big to fail—at least not ones that operate in any form other than that of a very tightly regulated utility.”
Reuters
19th November, 2012
It was kind of a big deal coming from the Federal Reserve Bank of New York’s influential president William Dudley. The former Goldman Sachs partner and chief economist has offered a fig leaf to those who say the problem of banks considered too-big-to-fail must be dealt with more aggressively. Some regional Fed presidents have advocated breaking up these institutions. But Dudley and other powerful figures at the central bank have maintained recent financial reforms have already laid the groundwork for resolving the issue.
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Posted in Financial crisis | Tagged: Bail in the banks!, no more bailouts-put banks into receivership | Leave a Comment »
Posted by seumasach on February 17, 2016
Another solution, he said, was to turn the big banks into public utilities by “forcing them to hold so much capital that they virtually can’t fail”.
Architect of 2008 bailout says US banks still pose ‘nuclear’ threat to economy
Guardian
16th February, 2016
America’s biggest banks present a “nuclear” threat to the US economy and should be broken up, a Federal Reserve policymaker and architect of the 2008 banking bailout said Tuesday.
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Posted in Financial crisis | Tagged: Bail in the banks!, no more bailouts-put banks into receivership | Leave a Comment »
Posted by seumasach on February 15, 2016
“There is still a heck of a gap, as you rightly point out, between 13% and the Vickers commission’s 18%, but the Vickers commission was operating on the assumption that there would not be bail-in-able debt, if I can put it that way, which we now have or shall shortly have.”
This is very interesting – he seems to be suggesting that this time round the creditors and, presumably, the shareholders will take the hit. When the banks go under again, as they inevitably must, they will be “bailed-in” rather than bailed -out following, perhaps, the template established by Michel Barnier at the European Commision. This implies the end of the City of London as we know. We shall see.
Guardian
14th February, 2016
Britain’s banks are vulnerable to a global financial shock despite efforts to shore up their finances, according to the official who led the inquiry into the safety of UK banks following the 2008 crash.
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Posted in UK economy, Uncategorized | Tagged: Bail in the banks!, no more bailouts-put banks into receivership, no more bombing!-no more bailouts! | Leave a Comment »
Posted by seumasach on June 13, 2014
The idea of bailing out the banks in perpetuity is totally devoid of realism. Neither the pound sterling nor the British people would survive such a policy. The only answer is to allow the banks to fail, to put them through bankruptcy.
HITC
Britain’s financial sector remains vulnerable to further global shocks and the Bank of England must be ready to rescue banks that run short of funds, Threadneedle Street warned on Thursday.
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Posted in UK economy | Tagged: bankrupt Britain, failing banks, no more bailouts-put banks into receivership, no more bombing!-no more bailouts! | Leave a Comment »
Posted by seumasach on December 12, 2013
“Shareholders and bondholders would be first in line, with savers last in the queue, while tapping public money to prevent a bank collapse would only be done as a last resort.”
This is an important step towards ending the hegemony of finance capital in Europe.
EU Observer
12th December, 2013
BRUSSELS – MEPs and ministers have agreed new rules to rescue insolvent banks that would target bondholders not savers, following the final round of talks in Strasbourg.
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Posted in Battle for Europe, Financial crisis | Tagged: bailout industry not finance, no more bailouts-put banks into receivership, no more bombing!-no more bailouts! | Leave a Comment »
Posted by seumasach on October 13, 2013
America’s biggest banks are now in a position to go bust without state intervention, the Bank of England’s deputy governor declares
Telegraph
12th October, 2013
The deputy governor of the Bank of England has declared an end to the era of taxpayer bail-outs for the world’s giant lenders.
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Posted in Financial crisis | Tagged: bankrupt Britain, End of empire, failing banks, no more bailouts-put banks into receivership, no more bombing!-no more bailouts! | Leave a Comment »
Posted by seumasach on March 24, 2013
“For the Government, these sorts of figures are terrifying, implying some form of additional taxpayer support for either Lloyds Banking Group, or more particularly, the Royal Bank of Scotland, in which it has major stakes.”
Telegraph
23rd March, 2013
Britain’s banks are under-capitalised. Not just by a little bit, but a lot. Under the Bank of England’s worst-case estimate, lenders need to raise something in the order of £60bn, more than three times the amount required to bail out Cyprus, which gives some idea of the scale of the problems officials think the industry faces.
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Posted in Uncategorized | Tagged: no more bailouts-put banks into receivership, no more bombing!-no more bailouts!, stop the bailout, UK bank bailout | Leave a Comment »
Posted by seumasach on January 18, 2013
RT
17th January, 2013
US “megabanks” with large toxic assets accumulated during the crisis should be split into smaller units, according to a senior Fed official. Thus they won’t be able to use the “too big to fail” excuse to get another government bailout.
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Posted in Financial crisis | Tagged: failing banks, no more bailouts-put banks into receivership, no more bombing!-no more bailouts! | Leave a Comment »
In These New Times 