In These New Times

A new paradigm for a post-imperial world

Posts Tagged ‘no second bailout’

Levitin: US banks insolvent

Posted by seumasach on March 21, 2011

Posted in Financial crisis, Uncategorized | Tagged: | Leave a Comment »

History’s lesson is that investment and retail banking must be separate

Posted by seumasach on March 13, 2011

Given that the banks are again running into bad debt problems and are essentially bankrupt the issues here  would apply to a post-bankruptcy environment. In the meantime “too big to fail” is the governing principle. That means , one way or another, bailout.

Liam Halligan

Telegraph

13th March, 2011

The mighty PIMCO slashed its holdings of US Treasuries to zero – causing an awful lot of soul-searching among global investors that still insist American sovereign IOUs are a “safe haven”.

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Bank of England chief under fire after warning Britain is at risk of another financial crisis

Posted by seumasach on March 5, 2011

“If you criticise the banks you reduce their credibility and then people worry about them. The important thing for the Governor of the Bank of England is to help them.”

We haven’t had to wait long for an outraged flurry of condemnation from the City for King’s inexplicable outbreak of honesty. However, the response merely confirms the banks’ solvencvy problems: they don’t need criticism , they need help i.e. another bailout.

Telegraph

5th March, 2011

In an interview with The Daily Telegraph, Mervyn King said that “imbalances” in the banking system remain and are “beginning to grow again”.

But leading economists, including a former Tory advisor and the chief executive of the British Bankers’ Association, have criticised his comments.

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British banks tight-lipped on exposure to PIGS debt

Posted by seumasach on November 24, 2010

Independent

30th April, 2010

In stark contrast to Banco Santander, Britain’s leading banks refused to detail their exposures to the debts of the troubled economies of Greece, Portugal and Spain, although they were falling over one another to play them down.

The Bank of International Settlements has estimated the collective exposures of Britain’s banks to Greece at $15bn (£10bn) Portugal at $24.2bn and Spain at an alarming $114bn, threating a fresh banking crisis if contagion from the Greek crisis spills over into other debt-ridden Eurozone economies.

Barclays and HSBC declined any comment, although privately they have been playing down their exposures as “limited” and “manageable”. Lloyds Banking Group – which is 41 per cent owned by the tax payer – yesterday said it had “no material exposure to Greece or Portugal” while claiming its exposure to Spain is “limited”.

Royal Bank of Scotland, 84 per cent owned by the state, was the most open of the UK’s “big four” putting its exposure to Greece at “less than £1bn”, with a further £1.4bn of Portuguese debt sitting on its books.

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