In These New Times

A new paradigm for a post-imperial world

Posts Tagged ‘no more bailouts-put banks into receivership’

Who are the real culprits behind UK’s collapsing public services?

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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Don’t be taken in by Project Fear – staying in the EU is the risky choice

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: , , , | Leave a Comment »

“Blunter approach” for too-big-to-fail banks

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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US banks still pose ‘nuclear’ threat to economy

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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UK banks vulnerable to global shock, economist warns

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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UK banks ‘still vulnerable to global shocks’

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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EU lawmakers reach agreement on bank rescue rules

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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US banks no longer ‘too big to fail’

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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Bank shortfall looms

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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‘Too big to fail’ banks must be broken up – Fed official

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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Revealed: why Gordon Brown sold Britain’s gold at a knock-down price

Posted by seumasach on July 13, 2012

Telegraph

5th July, 2012

A great deal of Gordon Brown’s economic strategy would strike a sane man as troubling. Not a great deal was mysterious. The orgy of consumption spending, frequent extensions of the cycle over which he would “borrow to invest”, proclamations of the “end of boom and bust”: these are part of the armoury of modern politicians, of all political hues.

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