31 août 2011 1

Banks in the euro zone: no more bets!!

Rédigé par dans la rubrique Banques Européennes, English, Europe

Many banks in the euro zone have a real leverage at 30 to 50! They cannot withstand the large current financial turmoil. August 18, a bank has even been forced to borrow $500 million to the ECB for a period of seven days to avoid being in default according to the ECB. August 25, at […]

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28 août 2011 3

ECB: no more bets! More, more…

Rédigé par dans la rubrique Banques Européennes, English

This Tender Operation-Announcement, Reference Number 11034 means that $5m were provided on morning August 25 from ECB to a German bank otherwise this bank was in default, but not allowed, because, finally, this bank found these $5m some hours later. Document 1: Indeed, to avoid this event, she was able to sell some assets in […]

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27 août 2011 14

ECB: no more bets! More…

Rédigé par dans la rubrique Banques Européennes, English

The situation is out of control in the euro zone, as I have been writing it for a while… The interbank market does not work because euro-zone banks managers have lost confidence in other banks. So they keep their cash in US$ rather than lending it to other banks that need it as they would […]

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25 août 2011 1

Crédit Agricole SA: 2011, Q2

Rédigé par dans la rubrique English

Crédit Agricole SA, the second of the four Gos French banks, is listed on Euronext Paris. It is part of an unlisted group Crédit Agricole Group, which includes regional and local banks as a financial arrangement. These banks published their accounts, half 2011 available in English … Document 1: On this page, the information in […]

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21 août 2011 10

€ big banks: Big bang!

Rédigé par dans la rubrique English

The latest Fed release about balance sheet (H.4.1) shows that it repurchased Treasury securities to $1,647 billion (QE1 and 2, item 1, document 1) financed by $1,701 billion from banks deposits (item 1, document 2), Document 1 (assets): Document 2 (liabilities): David Enrich and Carrick Mollenkamp in The Wall Street Journal tell us that, on […]

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20 août 2011 0

United States: GDP down!

Rédigé par dans la rubrique English

As was feared, GDP down 2.7% in this 3rd quarter 2011 from the previous, which represents a 0.3% year-to-year growth, according to the latest figures of the monetary aggregates published by the Fed Thursday evening, confirming my previous analysis, Figure 1: The present crisis is the same that the Lehman Brothers bankruptcy. Indeed, Americans increase […]

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18 août 2011 11

ECB: no more bets!

Rédigé par dans la rubrique Banques Européennes, English

The situation is out of control in the euro zone, as I have been writing it for a while… The latest ECB press release ended Aug. 12 showed that the interbank market does not work: bank deposits increased by €71 billion in the week to reach €441.5 billion (liability item 2) …! Document 1: Euro-zone […]

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17 août 2011 9

Leverage: reality and Accounting

Rédigé par dans la rubrique Banques américaines, Banques Européennes, English

For over 5,000 years, by definition, the bankers lend money they do not have but that they have previously borrowed. To be able to borrow money to lend, trust must exist between the partners. For this, the bankers should have plenty of capital. This is necessary, unavoidable. For millennia, the bankers could not lend much […]

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16 août 2011 12

French Gosbank: tsunami risk!

Rédigé par dans la rubrique Banques américaines, Banques Européennes, English

The four French Gosbanks have €5.645 trillion of liabilities. That is 2.8 times French GDP (€1.986 trillion). Table 1: Amounts in billion of euros. Their shareholder’s equity is only €210 billion. Their leverage average is at 26.8 (i.e. a Tier 1 ratio at 3.7%), worse than Lehman Brothers before its bankruptcy (25). To have leverage […]

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15 août 2011 15

BNP Paribas leveraged: 27!

Rédigé par dans la rubrique Banques françaises, English

The real leverage of BNP Paribas is … 27.2! Indeed, the French bank counts in its equity item 2: Undated Super Subordinated Notes eligible as Tier 1 capital which are actually a form of liabilities related interests subject to some conditions. Document 1 (top of page): Document 2 (bottom of page): Equity published in item […]

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