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Banks Must 'more Than Double Profits' To Meet Capital Requirements

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8772280/Banks-must-more-than-double-profits-to-meet-capital-requirements.html

Institutions need to increase profits by about $350bn (£221bn), according to management consultancy McKinsey, which said banks were facing "considerably deeper" challenges than the sovereign debt crisis currently engulfing the sector.

McKinsey said increased profitability would ensure banks produced returns that met their current cost of equity, while covering additional capital requirements under Basell III of up to $1.5 trillion. However, it warned additional surcharges for Systemically Important Financial Institutions, could make the gap even greater.

"This return gap is enormous", said Stefano Visalli, director at McKinsey. "It is bigger than the total profits of the global pharmaceutical and automotives industries put together. To achieve this will require a radical break with past trends for an industry that has never before decreased costs in absolute terms; in the next years it may need to reduce them by 15pc-25pc as well as increasing revenues."

More raping and pillaging needed by the bankers.....

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Simple. Pay less.

It's almost like the British Leyland unions in the 1970s demanding pay rises that would make the company massively unprofitable..

Except that when the banks are demanding much larger sums of tax payer cash to prop up the massively greater pay of a relatively small number of people, the government seems ok with it..

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"To achieve this will require a radical break with past trends for an industry that has never before decreased costs in absolute terms; in the next years it may need to reduce them by 15pc-25pc as well as increasing revenues."

They are gonna get rid of a lot of people. However there is a lot of work and numerous programmes in place to do this - for all the big boys. And they need people to do this. They won't be hiring permanant staff - as getting rid of them is sort of the point - so I can see the next few years being very good for contracting in many areas of the big banks. Then it could be a bit of a famine. Then again - I have thought for 3 years now that end of 2011-2012 would be the time it went a bit dry. Seems they just come up with more stuff to keep it shifting along. They seem to like changing stuff just for the hell of it.

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By not allowing RBS to fail.

The Labour/Tory/LibDems have condemned us to a lifetime of slavery.

Politicians are bank employees.

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Or they could all stop paying bonuses .

but but.. they need to pay the bonuses to get the "talented individuals" to make the profits!

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but but.. they need to pay the bonuses to get the "talented individuals" to make the profits!

I thought HFT computers were the answer.

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Banksters wages are unsustainable. Wages will come down and people will be laid off. You can already see lay offs are becoming a very big issue in investment banking.

Could this be good news for HPC? Some of the shortfall will be made by increasingly mortgage payback rates you would imagine. COuld help with a HPC.

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Banksters wages are unsustainable. Wages will come down and people will be laid off. You can already see lay offs are becoming a very big issue in investment banking.

Could this be good news for HPC? Some of the shortfall will be made by increasingly mortgage payback rates you would imagine. COuld help with a HPC.

Id buy shares in golden parachutes if I could.

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but but.. they need to pay the bonuses to get the "talented individuals" to make the profits!

Which are then paid out in bonus's!

- they need to keep raping the population in order to sustain their ability to rape the population. Why this is a good thing remains unclear.

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Which are then paid out in bonus's!

- they need to keep raping the population in order to sustain their ability to rape the population. Why this is a good thing remains unclear.

It's a good thing for the banks. Ideally, we should devote 100% of the economy to banks, cutting out all of this silly 'producing goods and providing services' malarkey.

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Simple. Pay less.

Do you think people would leave to work elsewhere if they got less pay?...

Or will they try to start charging their customers more such as monthly admin fees for example. :huh:

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Simple. Pay less.

Yep

If they paid less, London House Prices and wealth would drop like a stone (not held up by the bonuses anymore)

In an unsupported real housing scenario (ie falsely supported prices using public cash by multi Millionaires like Huhne with 5 BTL's)

This would make foreign housing speculators lose more than an arm and leg so they would fekk off too or into some other speculation - reductions spread out from fat-of-the-land 'viper' belly of the Wyverne Capital

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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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