Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Debt Burden Falls Heavily On Germany And France

Recommended Posts

http://www.nytimes.com/2010/06/14/business/global/14eurobank.html?ref=business

French and German banks have lent nearly $1 trillion to the most troubled European countries and are more exposed to the debt crisis than the banks of any other countries, according to a new report that is likely to add pressure on institutions to detail their holdings.

French banks had lent $493 billion to Spain, Greece, Portugal and Ireland by the end of 2009 while German banks had lent $465 billion, according to the report by the Bank for International Settlements, an institution based in Basel, Switzerland, that acts as a clearing house for the world’s central banks.

The report sheds light on where the risks from Spain and other troubled euro-zone countries are concentrated, but left open the question of which individual banks would be most endangered by declines in the prices of sovereign bonds or a surge in bad loans made to companies and individuals. The B.I.S. did not identify individual institutions, in line with its confidentiality rules.

Voluntary disclosure by banks has been uneven. Hypo Real Estate Holding, a real estate and public-sector lender based near Munich, has put its exposure to government debt from the four countries plus Italy at more than €80 billion, or $97 billion. Deutsche Bank, in Frankfurt, says it holds €500 million in Greek government bonds and no Spanish or Portuguese sovereign debt.

But there has been little disclosure from the hundreds of smaller mortgage lenders, state-owned banks and savings banks that dominate banking in countries like Germany and Spain.

“More information and disclosure on bank and financial institutions’ holdings of periphery paper would be beneficial,” Jacques Cailloux, an economist at Royal Bank of Scotland, said Sunday. Mr. Cailloux had not seen the report — which was released to news organizations on the condition that they not publish the findings until late Sunday — but he was one of the authors of a Royal Bank of Scotland study in May that anticipated many of the B.I.S. findings.

All told, Spain, Ireland, Portugal and Greece owe nearly $1.6 trillion to banks in the 16-country euro zone, either in the form of government debt or credit to companies and individuals in the four countries, the report said. Credit from French and German banks accounted for 61 percent of that total.

Uncertainty about which banks may be at risk from Greece and the other countries has fed mistrust among financial institutions, causing interbank lending to wither and leading European Union leaders to take extraordinary steps to prevent a financial collapse.

The European Central Bank has been pressuring E.U. regulators to release data on which banks may be most at risk, to separate the healthy banks from those that may be in trouble.

“We are encouraging them to do whatever is necessary to improve the sentiment of the market because that is the real issue today,” the E.C.B. president, Jean-Claude Trichet, said at a news conference last week.

Doesn't Trichet really mean we are encouraging them to sell this worthless crap to the ECB as fast as possible so only the ECB holds this crap and then the European taxpayer gets to pick up the tab?

Share this post


Link to post
Share on other sites

Doesn't Trichet really mean we are encouraging them to sell this worthless crap to the ECB as fast as possible so only the ECB holds this crap and then the European taxpayer gets to pick up the tab?

:o

saupload_trichet0.jpg

"Wilson! Take that man's name!!".

Edited by Laura

Share this post


Link to post
Share on other sites

yep,you're getting there.

What about adding Italy to our 'Bay of PIGS' disaster movie? They owe 115% of GDP! What about the debts owed by East Europe to France Germany and the UK, who are bankrupt on 'death support'?

Share this post


Link to post
Share on other sites

http://www.nytimes.c...ml?ref=business

Doesn't Trichet really mean we are encouraging them to sell this worthless crap to the ECB as fast as possible so only the ECB holds this crap and then the European taxpayer gets to pick up the tab?

Bingo bongo!

As well as being efficient, prudent, hard working und efficient, the Germans are also incredibly stupid.

However, since they're bigger than everyone else they get to lay off the results of their gross stupidity onto the poor, lazy and inefficient rather than take their losses like men.

In other words, the banksters will again socialise their losses when they should be writing them off and accepting that they're pillocks. Albeit hard working, efficient pillocks.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 141 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.