In These New Times

A new paradigm for a post-imperial world

Posts Tagged ‘no more bombing!-no more bailouts!’

UK heading for new financial crisis

Posted by seumasach on August 3, 2016

“The Bank of England is asleep at the wheel again, and we will be back to beleaguered banksters begging for bailouts – and the taxpayer will be ripped off yet again, but bigger this time.”

Bail-outs are no longer permitted under EU regulations, drawn up by Michel Barnier, bete noir of the Murdoch press, so it will be interesting how they play this one post Brexit. In any case, the people should take to the streets to oppose any bailouts!

UK heading for new financial crisis ‘on grander scale than 2008’ with Bank of England ‘asleep at the wheel’, says AS


3rd August, 2016

The Bank of England’s annual stress tests of the UK’s banks, designed to ensure Britain’s lenders will not be at the heart of another destructive financial crisis, have been branded “worse than useless”, by a new report.

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Barclays and RBS shares suspended from trading after tanking more than 8%

Posted by seumasach on June 27, 2016

The Bank of England said it was ”monitoring developments closely“ and would take ”all necessary steps“ to support monetary stability.

It’s bailout time again- perhaps some of that money that the Eurocrats have been squandering could be used to help out?


27th June, 2016

Trading in Barclays and RBS shares was suspended on Monday morning following heavy losses on the London Stock Exchange.

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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.


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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No more bailouts

Posted by seumasach on November 11, 2014

BoE chief says banks won’t be saved by taxpayers


10th November, 2014

New rules are being proposed that will force creditors, not taxpayers, to carry the losses of banks deemed “too big to fail.” The plans come after Western taxpayers were asked to pay trillions of dollars to bail out banks in the 2008 financial crisis.

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Germany gives green light for banking union plans

Posted by seumasach on July 11, 2014

To minimize the expense to euro zone taxpayers, European Union policymakers have drawn up a law under which shareholders, creditors and very large depositors will lose money first in the event of a bank failure.

For some reason many commentators fail to distinguish between bail-in, as is the case here,  and bailout, as we saw in US/UK in 2008. The above makes it clear.

11th July, 2014

Germany’s cabinet has approved a package of draft laws which effectively give the go-ahead to Europe’s plans for banking union – the main confidence-building response to the crisis in the financial sector, a government source said yesterday.

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Britain rules out military intervention in Iraq crisis

Posted by seumasach on June 17, 2014

Not only are London  wisely refraining from reinvading or bombing Iraq but the furore over Blair’s comments has revealed the total lack of appetite for such an intervention across the British and US political spectrum. The real significance of the Western response is the impetus towards rapprochement with Iran.

New Europe

17th June, 2014

LONDON, June 16 (Xinhua) — British Foreign Secretary William Hague on Monday ruled out the possibility of British military intervention in the on-going Iraq crisis, but pledged to offer counter-terrorism expertise and humanitarian aid to the country instead.

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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.


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


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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Council agrees position on bank resolution

Posted by seumasach on June 27, 2013

The main resolution measures would include:

– the sale of (part of a) business;

– establishment of a bridge institution (the temporary transfer of good bank assets to a publicly controlled entity);

– asset separation (the transfer of impaired assets to an asset management vehicle)

– bail-in measures (the imposition of losses, with an order of seniority, on shareholders and unsecured creditors).

These measures lay the basis for Eurozone control of a banking system purged of its bad bebts, the costs to be met by shareholders and bondholders rather than the taxpayer. It marks the end of the bailouts of the banks. It will be interesting to see the response of the British government: they will not be able to veto it.

Council of the European Union

27th June, 2013

The Council today1 set out its position on a draft directive establishing a framework for the recovery and resolution of credit institutions and investment firms (11148/1/13 REV 1).

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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.”


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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