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Realistbear

Banks Facing $3.6 Trillion 'wall Of Maturing Debt', I M F

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http://uk.finance.yahoo.com/news/Banks-facing-3-6-trillion-tele-91347573.html?x=0

Banks facing $3.6 trillion 'wall of maturing debt', IMF

Agencies, 17:02, Wednesday 13 April 2011
Debt-laden banks are the biggest threat to global financial stability and they must refinance a $3.6 trillion "wall of maturing debt" which comes due in the next two years, the International Monetary Fund said in its Global Financial Stability Report.
Many European banks need bigger capital cushions to restore market confidence and help reduce the risk of another financial crisis, according to the IMF (Berlin: MXG1.BE - news) 's report , published on Wednesday.
Banks (Euronext: SBK.NX - news) around the world are facing a $3.6 trillion "wall of maturing debt" coming due in the next two years, and the rollover requirements are
most acute for Irish and German banks
, the report said.
"These bank funding needs coincide with higher sovereign refinancing requirements, heightening competition for scarce funding resources," the IMF said.

That Elephant just will not be magicked away will he? Ireland will just need another bail out but who is going to bail out Germany if they can't roll over $3Tril?

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I can see Bankster Bob already working with his associates to somehow work some paper deals that will turn that $3tril into massive bonus producing fodder.

They just need to "buy" the debt with self-amortising loans that are in turn sold to some offshore corporation that sells the instruments on the CDO market that can be hidden inside packages of "guarantees" that are backed by the offshore corporation and sold back to the banks at a discount so that the whole transaction looks like a profitable exercise to justify a few hundred billion in bonuses. The bonuses will, of course, be real money that can be exchanged for real houses, Bentleys, Islands in the Caribbean etc.

Easy really? No different to what they have been doing ever since Gordon introduced the "light touch" on regulation. There is no limit to how you can generate paper transaction that are so complicated no one can understand them.

Edited by Realistbear

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We will buy their debt, they will buy ours, everyones problems magically solved. That's just the way it works.

They could just sell a few greek islands or dont they own them yet?

Edited by richyc

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Government debt was generally high and on a worryingly upward path in many advanced economies, the IMF said. It repeated its warning that the United States and Japan faced particularly dangerous debt dynamics.

No mention for the UK. We have pulled it off....

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No mention for the UK. We have pulled it off....

Plenty mention:

Grauniad LINK:

It said UK banks were exposed to weakness in the residential and commercial property markets, with household debt remaining high. "Banks face pressure on the asset side of their balance sheets because of concerns about the quality of bank exposures," the IMF said. "This is particularly the case for exposures to real estate – either residential or commercial – in Ireland, Spain, the UK and the US."

Yahoo gets its UK finance stuff from the Torygraph.

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It said UK banks were exposed to weakness in the residential and commercial property markets, with household debt remaining high. "Banks face pressure on the asset side of their balance sheets because of concerns about the quality of bank exposures," the IMF said. "This is particularly the case for exposures to real estate – either residential or commercial – in Ireland, Spain, the UK and the US."

Remember all those loans banks got from the ECB using questionable loans as collateral?

Well they still have to pay the money back.

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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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