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Wall Street Banks Win Market Share As Europeans Struggle

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http://www.bloomberg.com/news/2013-08-08/wall-street-banks-win-market-share-as-europeans-struggle.html

Wall Street banks have gained market share in investment banking and trading from European lenders that are still grappling with a stagnant economy and pressure from regulators to bolster capital.

Total revenue posted by the securities units of the top U.S. investment banks rose by 24 percent in the second quarter over the year-earlier period, more than twice the 11 percent gain logged by Europe’s biggest firms, among them Deutsche Bank AG (DBK) and Barclays Plc (BARC), according to data compiled by Bloomberg.

Success in US policy to rig the casino in favour of it's own banks on Wall Street or a failure of European banks in failing to capitalise on the "recovery"?

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http://www.bloomberg.com/news/2013-08-08/wall-street-banks-win-market-share-as-europeans-struggle.html

Success in US policy to rig the casino in favour of it's own banks on Wall Street or a failure of European banks in failing to capitalise on the "recovery"?

Aren't US banks in a bar better capital position now that European banks? The US used TARP to recapitalise their banks and buy crappy assets off balance sheets whereas most European governments simply put up guarantees to backstop losses at banks. Accounting fraud rule changes prevent any real valuation of assets at banks.

Speaking to colleagues in European arms of US banks they say that no corporations are borrowing in Europe - they simply keep the European arm as they need to be a "global bank" but they subsidise it with profits from the US. Europe is in terminal decline and banks are leeches on business so it follows that they would also decline if no one is investing. CONFIDENCE is the key - do you or those around you feel confident?

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Aren't US banks in a bar better capital position now that European banks? The US used TARP to recapitalise their banks and buy crappy assets off balance sheets whereas most European governments simply put up guarantees to backstop losses at banks.

They were in a better position to start with too - the capital requirements for US banks were always higher than European ones.

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http://www.bloomberg...s-struggle.html

Success in US policy to rig the casino in favour of it's own banks on Wall Street or a failure of European banks in failing to capitalise on the "recovery"?

Neither. Eurpean banks have given in to the ongoing barrage of banker bashing and negative publicity and decided that it's too politically dangerous to expand their investment banking businesses again.

Either way though, I would have thought you'd consider this to be good news. All investment banking is inherently evil after all.

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They were in a better position to start with too - the capital requirements for US banks were always higher than European ones.

http://www.let.rug.nl/usa/essays/general/a-brief-history-of-central-banking/michigan-act-%281837%29.php

At the outer extreme of compliance, a group of Michigan banks joined to cooperate in the ownership of reserves. These were transferred from one institution to the next in advance of the examiner as he made his rounds. And on this or other occasions, there was further economy; the top layer of gold coins in the container was given a more impressive height by a larger layer of ten-penny nails below. But not all of the excesses of leverage were in the West. In the same years, in the more conservative precincts of New England, a bank was closed up with $500,000 in notes outstanding and a specie reserve of $86.48 in hand (Galbraith, 63-64).

Trusting figures in banking can be risky.

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Neither. Eurpean banks have given in to the ongoing barrage of banker bashing and negative publicity and decided that it's too politically dangerous to expand their investment banking businesses again.

Either way though, I would have thought you'd consider this to be good news. All investment banking is inherently evil after all.

Why is it good news if the US banking system is becoming unstable as it gambles on increasing investment banking?

Investment banking gets too caught up with it's own euphoria which is why it's dangerous.

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Very intersting program (in parts) on being a german on tv this week.

Middle sized german employ a good majority of manuafacutring workers. They are mainly family owned and want to stay that way. they export across the world and have good finances.

They don't need debt, they don;t need to balloon their earnings by borrowing money and pretending they are growing.

Meagre pickings for the debt pumping banks.

Same goes for the public - large propoertion still pay by cash - they neither like nor use credit. Thanks to their success economically they don't have to.

Funny watching the wife in the experiment, both quisical and outraged at the thought of stay at home mums and that only 2% of gerna company directors were female. Well it doesn;t seem to have done their economy nor their comapnies much harm - don;t need to drive both parents out of the house to work to pay the debt.

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Deutsche Bank Q4 results aren't so pretty

https://www.db.com/ir/en/content/ir_releases_2013_4436.htm

Fourth quarter 2013 results

- Group revenues were EUR 6.6 billion, down 16% from the prior year, largely reflecting CB&S results

- Group loss before income taxes of EUR 1.2 billion

 Group IBIT included material charges of EUR 623 million for Credit Valuation Adjustment (CVA), Debt Valuation Adjustment (DVA) and Funding Valuation Adjustment (FVA), EUR 509 million of CtA, and EUR 528 million for litigation

- Core Bank loss before income taxes was EUR 26 million

- Core Bank IBIT adjusted for CVA/DVA/FVA, CtA, litigation and Other items in the quarter was EUR 1.3 billion

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Aren't US banks in a bar better capital position now that European banks? The US used TARP to recapitalise their banks and buy crappy assets off balance sheets whereas most European governments simply put up guarantees to backstop losses at banks. Accounting fraud rule changes prevent any real valuation of assets at banks.

Speaking to colleagues in European arms of US banks they say that no corporations are borrowing in Europe - they simply keep the European arm as they need to be a "global bank" but they subsidise it with profits from the US. Europe is in terminal decline and banks are leeches on business so it follows that they would also decline if no one is investing. CONFIDENCE is the key - do you or those around you feel confident?

In contrast US banks have begun to rave about recovery. They love the debt they have issued.

Could be a strategic plan..maybe they like it that way, with US powering up. Allowing them to pick up European assets at distressed values to come. Maybe US will force the issue in Londonium/UK.

Taper + followed by a rate rise, may see more money flow to US, to lend to its companies, with perhaps some desire to put financial and political pressure on Europe to accept hard-austerity, to cut the funny business with HTB2 ect, to rigidly stick to new agreed banking rules... so as to pick up trophy assets cheap, or issue new fresh debt on them for investors. Maybe even liberating UK house prices for younger people in the process.

(Reuters) - Loans to businesses have risen to a record high and bank executives say they are increasingly optimistic about the U.S. economy.

http://www.reuters.com/article/2014/01/19/us-banks-loans-analysis-idUSBREA0I0AE20140119

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All investment banking is inherently evil after all.

Only because the bankers have chosen to invest in derivative speculation rather than real world business development. We need investment- we don't need investment bankers. I think new funding models will eventually defang the banksters- that and new technologies that will degrade their profit margins.

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