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Big Banks 'more Dangerous Than Ever', Imf's Christine Lagarde Says

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9985280/Big-banks-more-dangerous-than-ever-IMFs-Christine-Lagarde-says.html

Europe needs to recapitalise, restructure or shut down its banks as part of a vital clean-up of the industry, International Monetary Fund managing director Christine Lagarde said as she warned that the threat from world’s biggest lenders was “more dangerous than ever”.

Speaking in New York ahead of next week’s IMF Spring meeting, Ms Lagarde launched a broadside against the financial services industry for resisting urgent reform.

“In too many cases – from the United States in 2008 to Cyprus today – we have seen what happens when a banking sector chooses the quick buck over the lasting benefit, backing a business model that ultimately destabilizes the economy. We simply cannot have pre-crisis banking in a post-crisis world.

“We need reform, even in the face of intense pushback from an industry sometimes reluctant to abandon lucrative lines of business.”

Almost five years since Lehman Brothers collapsed, she claimed: “The 'oversize banking’ model of too-big-to-fail is more dangerous than ever. We must get to the root of the problem with comprehensive and clear regulation.”

Dead woman walking, we can't have someone as dangerous as her in charge. Shutting down the money making machines, whatever next arguing for a manufacturing base?

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..even in the face of intense pushback..

Has there ever even been any "pushback"on display.

It looked more like governments just immediately folded in and went straight into bailing them out and helping them to steal stuff like depositors' money.

Edited by billybong

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9985280/Big-banks-more-dangerous-than-ever-IMFs-Christine-Lagarde-says.html

Dead woman walking, we can't have someone as dangerous as her in charge. Shutting down the money making machines, whatever next arguing for a manufacturing base?

This might explain the recent police raid on her apartment in Paris:

http://www.bbc.co.uk/news/world-europe-21858531

Just a mild warning for starters - but don't step out of line or you'll end up like your predecessor....

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Because the banks are broken, cheap credit is not getting through to the parts of the economy that need it. “Because of insufficient financial repair, monetary policy is “spinning its wheels” – meaning that low interest rates are not translating into affordable credit for people who need it,” she said.

Nothing structural then? The people the politicians think 'need it' (affordable credit). Would they be the younger people, and is she wanting this lending for housing. Prices including in France, Holland, UK, still in Ireland, that's been bid up in value to crazy heights over the decades, with Bomad now tapped out. Held by all the people Lagarde's age and older still, who refuse to accept their homes are too expensive for market conditions.

Perhaps people don't want to over-borrow, and banks not keen on lending. Even for business, why borrow when zombie companies abound, com-prop valued so high, and Largarde making it clear things are still very dangerous out there. Not enough money/debt velocity likely to affect other leveraged businesses, creating better value for another entity to buy in the future.

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  • 259 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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