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Fed Wants To Force Foreign Banks In Us To Hold More Capital


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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9746720/Fed-wants-to-force-foreign-banks-in-US-to-hold-more-capital.html

The central bank has also proposed subjecting lenders such as Barclays to the same strict liquidity rules as their US counterparts and forcing them to undergo stress tests.

London-based Barclays and Germany’s Deutsche Bank are among global institutions with more than $50bn (£30.9bn) of assets that would be caught by the proposed measures.

The Fed is keen to expand regulations, brought in following the financial crisis four years ago, to overseas banks that have operations in the US.

The 2008 global crisis “revealed limitations on the ability of foreign banking organisations to act as a source of support to their US operations under stressed conditions”, the proposed regulations state.

“In the wake of the crisis, some home country regulatory authorities have restricted the ability of banking organisations based in their home country to provide support to host country subsidiaries. In addition, the capacity and willingness of governments to act as a backstop to their,” the Fed added.

Are they really seeking to force out their foreign competitors to increase US banking sector profits? You do wonder how impartial these stress tests will be, will US banks pass whilst foreign banks are forced to increased capital?

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9746720/Fed-wants-to-force-foreign-banks-in-US-to-hold-more-capital.html

Are they really seeking to force out their foreign competitors to increase US banking sector profits? You do wonder how impartial these stress tests will be, will US banks pass whilst foreign banks are forced to increased capital?

The stress tests are laughable:

http://www.europac.net/commentaries/stress_tests_no_sweat

Barclays have nothing to fear. It's just more grandstanding to fool the public. The Fed are in on it and so are Barclays.

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  • 5 months later...
Exclusive: Deutsche Bank 'horribly undercapitalized' - U.S. regulator

Fri Jun 14, 2013 6:02pm EDT

(Reuters) - A top U.S. banking regulator called Deutsche Bank's capital levels "horrible" and said it is the worst on a list of global banks based on one measurement of leverage ratios.

"It's horrible, I mean they're horribly undercapitalized," said Federal Deposit Insurance Corp Vice Chairman Thomas Hoenig in an interview. "They have no margin of error."

http://www.reuters.com/article/2013/06/14/us-financial-regulation-deutsche-idUSBRE95D0X620130614

1st May: http://www.reuters.com/article/2013/05/01/financial-regulation-foreign-idUSL2N0DI12U20130501

FT suggest subsidiaries of large foreign banks meet a minimum level of 7 per cent core capital to risk-weighted assets, as per new international standard (Basel 3 or whatever its called).

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Don't see the point in banks holding more capital TBH.

It seems to me that the choices are.

We give them printed money now to hold as capital or we give them printed money later and bail them out.

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Don't see the point in banks holding more capital TBH.

It seems to me that the choices are.

We give them printed money now to hold as capital or we give them printed money later and bail them out.

Isn't the FED actually saying to the Banks, don't lend as much? isn't this the end result of holding more capital? As above, there are two options, we give them the capital now, or we bail them out tomorrow.

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Isn't the FED actually saying to the Banks, don't lend as much?

The public sector, through their Federal mouthpiece are saying to private capital - buy more T-bills, or else, and never mind the eyewatering price; we've got salaries, pensions, and assorted boondoggles to make whole here.

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The public sector, through their Federal mouthpiece are saying to private capital - buy more T-bills, or else, and never mind the eyewatering price; we've got salaries, pensions, and assorted boondoggles to make whole here.

AH yes that makes more sense. Forget about the rubbish I wrote.

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  • 4 months later...
Fri Nov 1, 2013 2:11pm EDT

(Reuters) - Banks in the United States will have to test whether they can survive a halving of the stock market during a severe U.S. recession, the Federal Reserve said on Friday, as it set the rules for next year's model runs to gauge the health of the financial system.

Eight large U.S. banks must also test for the first time whether they can cope with the hypothetical default of their largest trading partner, the Fed said in documents laying out the so-called "stress tests".

http://www.reuters.com/article/2013/11/01/us-banks-fed-tests-idUSBRE9A00W120131101

They want to survive, whilst others crash, imo. Then pick up the pieces cheap, and USA debt more valuable than ever. Whilst UK keeps worshipping UK house prices, desiring them to go up, denying the bubble.

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The stress tests are laughable:

http://www.europac.net/commentaries/stress_tests_no_sweat

Barclays have nothing to fear. It's just more grandstanding to fool the public. The Fed are in on it and so are Barclays.

The Americans have a handful of banks on their territory which have put the willies up them. I am thinking Barclays, Deutsche, UBS and maybe a couple more. What they do not want is for one of them to go belly up and leave an almighty mess behind. The Americans may bail-out a local bank, but they would be loathe to bail-out a foreign institution. However, any of the above are capable of causing panic in the US financial system if it went into an untidy Lehman-style insolvency.

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  • 429 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% +
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