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wonderpup

A Banker Who Can Think!

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Here's what Ackermann sees: "Prospects for the financial sector overall... are rather limited."

"We have a financial industry that is still not really providing convincing answers to the questions about the meaningfulness of many modern financial products and trading in securities. The questions are getting louder and require new responses."

He also believes high frequency trading needs to be investigated more. He said regulators and the banks need to begin a dialogue to examine the effects of HFT in the markets, so as to avoid imbalances in the markets.

However a consequence of all of this scrutiny is that growth prospects for banks are low.

"The outlook for the future growth of revenues is limited by both the current situation and structurally."

The banks will have to ask how they can be more long-term investors in order to gain more stability in financial markets.

"We must in my opinion, check all our work in all areas thoroughly again to ascertain whether we prioritize our genuine tasks as servants of the real economic needs."

Read more: http://www.businessinsider.com/josef-ackermann-euro-banks-speech-frankfurt-2011-9#ixzz1X7OQdFtW

It's kind of funny to read this in a way- like a guy standing in the smouldering ruins of his house wondering if he smells gas. :lol:

These people have drifted so far away from anything resembling social utility that to them it looks like a foreign country- somewhere they've heard about, never seen, but have an uneasy sense they ought to recognise.

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Hmmm ....

Once upon a time, an Ackermann would tend and nurture the land.

A modern economy is based less on the land and more on ... things involving finance, that should be nurtured by beneficent banks ...

Hmmm ....

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Erm, Ackermann said a lot more than that yesterday. This from Mish:

"It is obvious that many organizations will not survive in the event of having to reassess their portfolios of sovereign debt at market prices," Ackerman said in his speech at a banking conference held in Frankfurt.

These comments came after the controversy arose Christine Lagarde, managing director of IMF, which has called for an urgent recapitalization of European banking. According to the institution, the shortage could reach 200,000 million euros, resulting from exposure to sovereign debt.

Ackerman believes that the turmoil facing the financial sector is reminiscent of the crisis suffered in 2008 after the collapse of Lehman Brothers, but also believes that European banks are now much better capitalized and less dependent on short-term financing term.

He's admitting that they're insolvent. By implication, he's also admitting they have committed balance sheet fraud. How else could they get to pay themselves bonuses from 2008 onwards if their assets really are worthless at Market prices?

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Ermm they could always do errr banking. The good old fashioned sort. A left field concept I know.

Banks strike me as being frustrated Tony Hancock types. There is so much more to us than being a local TV comic, we have Hollywood potential!

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You mean allocate capital? You could be onto something there.

Not allocate no, more "look after capital in a safe place and keep your damn hands to yourself."

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  • 334 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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