interestrateripoff Posted March 14, 2011 Share Posted March 14, 2011 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. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted March 14, 2011 Share Posted March 14, 2011 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. Quote Link to comment Share on other sites More sharing options...
campervanman Posted March 14, 2011 Share Posted March 14, 2011 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. Quote Link to comment Share on other sites More sharing options...
ralphmalph Posted March 14, 2011 Share Posted March 14, 2011 (edited) 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 March 14, 2011 by ralphmalph Quote Link to comment Share on other sites More sharing options...
MrFlibble Posted March 14, 2011 Share Posted March 14, 2011 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? Quote Link to comment Share on other sites More sharing options...
R K Posted March 14, 2011 Share Posted March 14, 2011 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. Quote Link to comment Share on other sites More sharing options...
Reck B Posted March 14, 2011 Share Posted March 14, 2011 Banks exposure (media) "£Trillions" Banks exposure (actual) "£****** all" Our exposure (actual) "£Trillions" Quote Link to comment Share on other sites More sharing options...
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