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Banks Have £1.6 Trillion Exposure To Ailing Quartet Of Greece, Ireland, Portugal And Spain

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8379302/Banks-have-1.6-trillion-exposure-to-ailing-quartet-of-Greece-Ireland-Portugal-and-Spain.html

On an "ultimate risk" basis that includes the potential loss on derivatives and credit guarantees of different kinds, the figure rises to $2.51trillion as of September 2010, well above the headline figure of $1.76 trillion in cross-border loans. The sheer scale highlights the systemic dangers if the EU fails to stabilize the debt crisis.

Eurozone leaders agreed to boost the lending power of the EU bail-out fund on Friday, but Germany vetoed proposals for a debt buy-back scheme or an activist policy of bond purchases.

The BIS, the central bank of central banks, said in its quarterly report that Germany had $569bn of exposure to the quartet, France $380bn, and the UK $431bn.

A chunk of British exposure is on behalf of Mid-East and Asian clients banking through London. Italy has just $81bn at risk and seems uniquely insulated from the crisis all around it.

The geography of risk varies greatly. British-based banks and subsidiaries have $225bn at stake in Ireland, and $152bn in Spain, but little in Portugal or Greece. France is up to its neck in Greece with $92bn; a Benelux-led group has $180bn in Spain, and Spain itself has exposure of $109bn to Portugal.

Not that there was any doubt as for the real reason behind the PIIGS bailout, it wasn't to help the local populace it was to give the bankers free cash.

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http://www.telegraph...-and-Spain.html

Not that there was any doubt as for the real reason behind the PIIGS bailout, it wasn't to help the local populace it was to give the bankers free cash.

anyone would think a default would make all these "investments" worthless.

Is anyone out there seriously thinking any of these things are going to be 100% defaulted?...or all of them...no payouts, no redemptions?..nothing.

Total exposure is like saying we are exposed to death....yet it might not happen for years, so the RISK is whats important.

They could be writing off much of this stuff over 25 years..

and meanwhile, investing somewhere else.

Bailouts mean that these guys have hope and can sit back, meanwhile, wealth being drawn from the populace is NOT being invested in new, wiser creations.

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8379302/Banks-have-1.6-trillion-exposure-to-ailing-quartet-of-Greece-Ireland-Portugal-and-Spain.html

Not that there was any doubt as for the real reason behind the PIIGS bailout, it wasn't to help the local populace it was to give the bankers free cash.

So UK bamks have 4 times the exposure than the French but the French are 'up to their necks in it'. More donations required from UK 'cash cow' taxpayers I think. Save the pound.

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So UK bamks have 4 times the exposure than the French but the French are 'up to their necks in it'. More donations required from UK 'cash cow' taxpayers I think. Save the pound.

How did you calculate that UK banks have 4 times exposure? UK exposure 431bill France 380bill stated in the article.

Edited by ralphmalph

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Not that there was any doubt as for the real reason behind the PIIGS bailout, it wasn't to help the local populace it was to give the bankers free cash.

No that cannot be right. You must be mistaken surely? :rolleyes:

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Diamond Bob and da boyz need bigger bonuses to encourage them not to invest depositors cash in this sh1t.

Nothing less than $100million dollars per day will suffice.

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  • 284 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%



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