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Bank Recapitalisation: Who Needs What

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http://www.guardian.co.uk/business/blog/2011/oct/25/debt-crisis-bank-recapitalisation

Bank-recapitalisation-001.jpg

The extra capital is needed to ensure banks are able to withstand losses from Greece and other troubled eurozone countries. And, it seems likely, that any bank with a capital ratio under 9% will be banned from paying out dividends or bonuses until they have topped up their capital levels.

More hilarity especially after the Dexia bailout and Belgium banks need nothing. Got to love how it's all focussed on Greek losses rather than looking wider and speculating on losses from other nations.

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The banks aren't getting equity capital afaik, the Greeks et al are going to write down their debts and the institutions holding the bonds will trade them in at the ECB.

It's another sordid game of pass the parcel but the banks love it because they're able to skim a % of these £multi trillion transactions. The politicians also love it because they're hoping for big fat payoffs once their political career ends. Now they've got their snouts in the trough nothing is going to stop them, and they can always play the "but we're saving the financial system from disaster" card to give the impression that it's in the public interest.

Edited by Authoritarian

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The banks aren't getting equity capital afaik, the Greeks et al are going to write down their debts and the institutions holding the bonds will trade them in at the ECB.

It's another sordid game of pass the parcel but the banks love it because they're able to skim a % of these £multi trillion transactions. The politicians also love it because they're hoping for big fat payoffs once their political career ends. Now they've got their snouts in the trough nothing is going to stop them, and they can always play the "but we're saving the financial system from disaster" card to give the impression that it's in the public interest.

.........that sounds very truthful. ;)

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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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