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Financial Markets Face 'severe Strains', Warns Bank Of England

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http://www.guardian.co.uk/business/2011/sep/28/financial-markets-severe-strains-fpc

The Bank of England has warned of "severe strains" in financial markets and appeared to concede that banks might need to eat into their capital cushions to keep credit flowing into the stagnating economy.

The second report by the new Financial Policy Committee – set up by the coalition inside the Bank to be responsible for financial stability – indicated that it had considered the need for "short-term measures" to try to prevent a re-run of the 2007 credit crunch.

In a two-page update of its latest meeting – which took place on 20 September – the FPC said: "The committee had advised UK banks in June that, if their earnings were strong, they should seek to build capital levels further, given the risks to the economic and financial environment. But events had lowered the likelihood that banks would be able to strengthen their balance sheets in this way over the short term."

Even so, the committee said it was recommending banks take "any opportunity" to strengthen their capital and stock of liquid assets to "absorb flexibly any future shocks without constraining lending to the wider economy". This could be done by raising long-term funds on the markets and reducing dividends and bonuses in line with any fall in profits.

An oxymoron?

So banks need to build up their capital to buffer losses but yet at the same time must use their capital to lend!

I'm glad we've got such experts running the show...

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http://www.guardian.co.uk/business/2011/sep/28/financial-markets-severe-strains-fpc

An oxymoron?

So banks need to build up their capital to buffer losses but yet at the same time must use their capital to lend!

I'm glad we've got such experts running the show...

I have an idea. Why dont they lie about their losses? That way they wont need any more capital as there are no losses to impair the capital.

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http://www.guardian....ere-strains-fpc

An oxymoron?

So banks need to build up their capital to buffer losses but yet at the same time must use their capital to lend!

I'm glad we've got such experts running the show...

They're telling the gamblers in charge of banks to stop asset stripping banks.

I think there could also be a secondary threat here: their duty is to act as lenders (not gamblers) and should they fail to perform their role as as expected by their banking licences because they've emptied the kitty via wages and bonuses, who knows what might happen.

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This could be done by raising long-term funds on the markets and reducing dividends and bonuses in line with any fall in profits.

:lol:

Bob Diamond says the time for remorse is over.

Dim Dave says we must get behind our banks.

They know perfectly well they can keep stealing from the till and Merv/Osborne will simply bung them oodles mroe taxpayer funds whenever they need it.

That's there business model after all.

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Anyone who claims that banks are to blame for the current situation is either a liar or a moron.

The EU and the Euro were political projects that were sold to the people of Europe on the basis that they delivered unprecedented wealth and prosperity.

The reality is that the wealth was all 'magic money' created by banks directly as a result of the deliberate actions and wishes of our political masters.

Did the bubble burst in time to save freedom and democracy in Europe?

Only time will tell.

:blink:

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I have an idea. Why dont they lie about their losses? That way they wont need any more capital as there are no losses to impair the capital.

True. Or we could just print them some more money...

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  • 338 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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