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Standard Charter To Dump 15,000 Staff After Loss, Seeks To Raise $5.1Bn

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StanChart to raise new capital, posts loss

HONG KONG - Standard Chartered Plc announced plans to raise $5.1 billion (3.3 billion pounds) in new capital through a rights issue and cut 15,000 jobs by 2018 as new Chief Executive Bill Winters tries to restore profitability at the lender that has been hit hard by a slowdown in emerging markets.

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I am sure this bank was one of the few 'less risky' ones back during 2008 and all ? Unless I am getting mixed up.

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I think there are probably quite a few businesses that have more exposure to emerging markets than they're letting on right now. The last decade was basically a race to see who can diversify into as many EM countries as possible, SC are the perfect example, but in 2008 you couldn't read a financial blog or forum or website without somebody talking up EM opportunities. The company to survive the recession was the one that was engaging new markets in Asia and South America where a new wave of clown-pocket consumers were on the rise. They were all going for it.

It looks like the potential headcount was 2000 in January so their finances must have deteriorated rapidly in the last 9 months to increase to 15000 jobs. Interestingly many of the Asian stock indices and places like Brazil are still break even or marginally down since January. They probably went right off the top of the bloody cliff.

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I am sure this bank was one of the few 'less risky' ones back during 2008 and all ? Unless I am getting mixed up.

LIKE HSBC they didnt really get into the housing bubble. China, emerging markets, and commodities are the problem now.

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Valeant pharmaceuticals, http://www.nytimes.com/2015/10/27/opinion/is-valeant-pharmaceuticals-the-next-enron.html?_r=0

And guess what, if it is coming next, biotech is the next bubble to burst. Its hard to call a top, but lets hope not too many have got to deep into it, if the current correction doesnt reverse course. The biotech sector is up some 4x in 4 years.

IBB is the nasdaq biotech ETF

Edited by 200p

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LIKE HSBC they didnt really get into the housing bubble. China, emerging markets, and commodities are the problem now.

So maybe we are about to see a crash a la 2008 - but with all the Banks exposed to China rather than MBS etc..

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Ah good news, good news. :rolleyes::rolleyes: It's all part of the long term economic plan. Last week Camoron even tried to take credit for zero inflation. :lol::lol::lol::lol:

If the level of inflation was in his power the BoE would be asking his advice on how to increase it "for the benefit of the UK economy".

Edited by billybong

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