Forum

 
  Back to OzPolitic.com   Welcome, Guest. Please Login or Register
  Forum Home Album HelpSearch Recent Rules LoginRegister  
 

Page Index Toggle Pages: 1
Send Topic Print
IMF : 9 Biggest Banks Not Financially Sound (Read 314 times)
___
Gold Member
*****
Offline


Australian Politics

Posts: 32973
Australia
Gender: male
IMF : 9 Biggest Banks Not Financially Sound
Oct 12th, 2017 at 3:58am
 
RTTNews.com) - The International Monetary Fund on Wednesday said nine of the world's biggest banks may struggle to maintain profits in the new global economy in the coming years.

According to IMF's biannual Global Financial Stability Report, Citigroup Inc, Barclays PLC, Deutsche Bank AG , Societe Generale SA, UniCredit Group SPA, Standard Chartered PLC, Sumitomo Mitsui Financial Group, Mizuho Financial Group and Mitsubishi UFJ Financial Group are all likely to post mediocre results in the next few years.

These nine banks together represent $47 trillion in assets, or about one-third of global banking loans and assets.

According to the IMF, the consensus among banking analysts was for a return on equity of less than 8 percent by 2019 for each of the nine banks. However, if banks don't earn above 8 percent for cost of equity, they are unable to maintain consistent profits and typically struggle to build capital.

http://www.nasdaq.com/article/imf-these-are-the-9-banks-to-worry-about-20171011-...


The stage is set. GFC 2008 was the test run. This is the real crisis coming.

Back to top
« Last Edit: Oct 12th, 2017 at 4:20am by ___ »  

Bitcoin ~
Best form of Universal Ledger humanity has ever seen 
 
IP Logged
 
Ye Grappler
Gold Member
*****
Offline


Australian Politics

Posts: 31870
Mid-North Coast NSW
Gender: male
Re: IMF : 9 Biggest Banks Not Financially Sound
Reply #1 - Oct 12th, 2017 at 8:51am
 
The global economy with its profit shifting and not paying its way was always a disaster waiting to happen.  You can bet the fat cats at the helm don't go under though... you won't see them leaping from skyscrapers - they'll be sailing off to their tax haven in a $40m yacht and letting the small investors go to the wall without a retirement fund.

Time for a minimum tax on offshore corporations as a start - then greater control over their activities and their cost shifting.  Then a global accord on global taxation, to be distributed to the trading nations on the basis of turnover.  Either that or a strict taxation regime within trading nations that covers the real profit made in that nation.

Finally even the big banks are beginning to feel the pinch with 'reduced profits' (did-ums!) - but it still won't be anywhere near what the little guy cops out of it.
Back to top
 

“Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.”
― John Adams
 
IP Logged
 
___
Gold Member
*****
Offline


Australian Politics

Posts: 32973
Australia
Gender: male
Re: IMF : 9 Biggest Banks Not Financially Sound
Reply #2 - Oct 12th, 2017 at 10:36am
 
Credit-market shock could catch investors flatfooted: IMF

A shock to credit markets could catch investors flatfooted and derail a global economic recovery that is largely strengthening, according to the International Monetary Fund.

...

"A shock to individual credit and financial markets well within historical norms could decompress risk premiums and reverberate worldwide," the fund said. "This could stall and reverse the normalization of monetary policies and put growth at risk."

...

The IMF assessed the impact of an ongoing buildup of debt and an extended rise in the price of risky assets. At first, spreads would remain compressed and volatility low, as equity and housing prices continue to rise. By 2020, however, credit spreads would widen rapidly as debt levels breach critical limits, prompting investors to grow worried about debt sustainability. Stock prices would fall as much as 15 per cent while housing prices would drop as much as 9 per cent, according to the results of the IMF's model.

The global economic downturn would be about a third as severe as the contraction that followed the 2008 world financial crisis. The euro area would take the biggest hit considering the ECB has little room to ease monetary policy, the IMF said.

https://beta.theglobeandmail.com/globe-investor/credit-market-shock-could-harm-g...


So the biggest statement about the massive risk in front of us ... and mainstream media is ignoring it.

Keep the sheep unaware of the slaughterhouse until they hear the screaming. Then it's too late.
Back to top
 

Bitcoin ~
Best form of Universal Ledger humanity has ever seen 
 
IP Logged
 
lee
Gold Member
*****
Offline


Australian Politics

Posts: 10983
Gender: male
Re: IMF : 9 Biggest Banks Not Financially Sound
Reply #3 - Oct 12th, 2017 at 11:22am
 
Quote:
IMF : 9 Biggest Banks Not Financially Sound


___ wrote on Oct 12th, 2017 at 3:58am:
said nine of the world's biggest banks may struggle to maintain profits in the new global economy in the coming years.


You do realise that banks failing to MAINTAIN profits does NOT mean they are not financially sound?
Back to top
 
 
IP Logged
 
___
Gold Member
*****
Offline


Australian Politics

Posts: 32973
Australia
Gender: male
Re: IMF : 9 Biggest Banks Not Financially Sound
Reply #4 - Oct 12th, 2017 at 11:41am
 
All nine declined to comment on the report.

"Institutions that are not profitable might not be able to generate enough capital in the future should adverse shocks hit," Tobias Adrian, the director of the IMF's monetary and capital markets department, told reporters. "It might become a financial stability risk not to be profitable."

...

Some of the IMF's views are already conventional thinking on Wall Street. Deutsche Bank's stock, for example, trades at less than half of its book value, or net worth, and has traded well below this level since 2010. This suggests investors don't believe it will deliver returns that create value in the long run.

Deutsche Bank has struggled to maintain profits during a prolonged turnaround hobbled by high legal fees and technology costs and capital constraints on dominant businesses such as fixed-income trading. Another challenge for the German lender is that retail banking in its home market is less profitable than that business is for many big banks elsewhere. Deutsche Bank raised $8.5 billion earlier this year by selling shares, putting pressure on executives to prove they can use the fresh capital to boost profits. A Deutsche Bank spokesman declined to comment after the release of the report.

...

Yet "problems in even a single" one of such institutions "could generate systemic stress," the IMF said.

...

The IMF said regulators should press their financial institutions to resolve nonperforming loans, drop unprofitable lines of business and develop plans to unwind the bank in case of failure.

https://asia.nikkei.com/Politics-Economy/Economy/IMF-lists-nine-banks-likely-to-...


I wonder if this will stop Deutsche and fellow Banks manipulating the markets?

Silver, $1000 an oz, here we come.


Back to top
 

Bitcoin ~
Best form of Universal Ledger humanity has ever seen 
 
IP Logged
 
lee
Gold Member
*****
Offline


Australian Politics

Posts: 10983
Gender: male
Re: IMF : 9 Biggest Banks Not Financially Sound
Reply #5 - Oct 12th, 2017 at 12:16pm
 
___ wrote on Oct 12th, 2017 at 11:41am:
"Institutions that are not profitable might not be able to generate enough capital in the future should adverse shocks hit," Tobias Adrian, the director of the IMF's monetary and capital markets department, told reporters. "It might become a financial stability risk not to be profitable."


Such certainty your headline shows. Then a creep back to reality. Wink
Back to top
 
 
IP Logged
 
___
Gold Member
*****
Offline


Australian Politics

Posts: 32973
Australia
Gender: male
Re: IMF : 9 Biggest Banks Not Financially Sound
Reply #6 - Oct 12th, 2017 at 12:51pm
 
The next financial crisis is probably around the corner—we just don’t know from where

Financial crises are happening more frequently, becoming almost a fixture of modern life, according to research by Deutsche Bank. While meltdowns remain difficult to see in advance, the next panic is almost certainly brewing, and it may well be provoked by the world’s major central banks.

https://qz.com/1096237/deutsche-bank-analysis-on-the-frequency-of-financial-cris...


Deutsche, first domino in central banks to fall.?
We will know soon.
Back to top
 

Bitcoin ~
Best form of Universal Ledger humanity has ever seen 
 
IP Logged
 
___
Gold Member
*****
Offline


Australian Politics

Posts: 32973
Australia
Gender: male
Re: IMF : 9 Biggest Banks Not Financially Sound
Reply #7 - Oct 12th, 2017 at 12:53pm
 
lee wrote on Oct 12th, 2017 at 12:16pm:
___ wrote on Oct 12th, 2017 at 11:41am:
"Institutions that are not profitable might not be able to generate enough capital in the future should adverse shocks hit," Tobias Adrian, the director of the IMF's monetary and capital markets department, told reporters. "It might become a financial stability risk not to be profitable."


Such certainty your headline shows. Then a creep back to reality. Wink



Economics are based on predictions.
If you want future facts, employ a soothsayer.

Back to top
 

Bitcoin ~
Best form of Universal Ledger humanity has ever seen 
 
IP Logged
 
lee
Gold Member
*****
Offline


Australian Politics

Posts: 10983
Gender: male
Re: IMF : 9 Biggest Banks Not Financially Sound
Reply #8 - Oct 12th, 2017 at 3:51pm
 
___ wrote on Oct 12th, 2017 at 12:53pm:
Economics are based on predictions.


Yep. And amazingly few come true. But people still believe them because they are computer generated. All those "What if" scenarios. Only one being wrong throws the prediction out.

___ wrote on Oct 12th, 2017 at 12:53pm:
If you want future facts, employ a soothsayer.


But that is what you do so well, In your hands predictions become certain future. Evidence your headline. Wink
Back to top
 
 
IP Logged
 
lee
Gold Member
*****
Offline


Australian Politics

Posts: 10983
Gender: male
Re: IMF : 9 Biggest Banks Not Financially Sound
Reply #9 - Oct 12th, 2017 at 3:53pm
 
___ wrote on Oct 12th, 2017 at 12:51pm:
While meltdowns remain difficult to see in advance, the next panic is almost certainly brewing,



of course. It has been brewing since the last melt down. Wink
Back to top
 
 
IP Logged
 
Ajax
Gold Member
*****
Offline


CO2 has never controlled
temperature on Earth

Posts: 6050
Australia
Gender: male
Re: IMF : 9 Biggest Banks Not Financially Sound
Reply #10 - Oct 13th, 2017 at 3:17pm
 
___ wrote on Oct 12th, 2017 at 3:58am:
RTTNews.com) - The International Monetary Fund on Wednesday said nine of the world's biggest banks may struggle to maintain profits in the new global economy in the coming years.

According to IMF's biannual Global Financial Stability Report, Citigroup Inc, Barclays PLC, Deutsche Bank AG , Societe Generale SA, UniCredit Group SPA, Standard Chartered PLC, Sumitomo Mitsui Financial Group, Mizuho Financial Group and Mitsubishi UFJ Financial Group are all likely to post mediocre results in the next few years.

These nine banks together represent $47 trillion in assets, or about one-third of global banking loans and assets.

According to the IMF, the consensus among banking analysts was for a return on equity of less than 8 percent by 2019 for each of the nine banks. However, if banks don't earn above 8 percent for cost of equity, they are unable to maintain consistent profits and typically struggle to build capital.

http://www.nasdaq.com/article/imf-these-are-the-9-banks-to-worry-about-20171011-...


The stage is set. GFC 2008 was the test run. This is the real crisis coming.



All GFC's are technical, if you don't know that then a good place to start is here.


Back to top
 

1. "There has never been a more serious assault on our standard of living than the carbon tax." Ajax
2. “Scratch the average homosexual and you will find a pedophile" Kevin Bishop (homosexual)
 
IP Logged
 
___
Gold Member
*****
Offline


Australian Politics

Posts: 32973
Australia
Gender: male
Re: IMF : 9 Biggest Banks Not Financially Sound
Reply #11 - Oct 13th, 2017 at 4:01pm
 
Ajax wrote on Oct 13th, 2017 at 3:17pm:
___ wrote on Oct 12th, 2017 at 3:58am:
RTTNews.com) - The International Monetary Fund on Wednesday said nine of the world's biggest banks may struggle to maintain profits in the new global economy in the coming years.

According to IMF's biannual Global Financial Stability Report, Citigroup Inc, Barclays PLC, Deutsche Bank AG , Societe Generale SA, UniCredit Group SPA, Standard Chartered PLC, Sumitomo Mitsui Financial Group, Mizuho Financial Group and Mitsubishi UFJ Financial Group are all likely to post mediocre results in the next few years.

These nine banks together represent $47 trillion in assets, or about one-third of global banking loans and assets.

According to the IMF, the consensus among banking analysts was for a return on equity of less than 8 percent by 2019 for each of the nine banks. However, if banks don't earn above 8 percent for cost of equity, they are unable to maintain consistent profits and typically struggle to build capital.

http://www.nasdaq.com/article/imf-these-are-the-9-banks-to-worry-about-20171011-...


The stage is set. GFC 2008 was the test run. This is the real crisis coming.



All GFC's are technical, if you don't know that then a good place to start is here.





Prior to the printing press, only kings, popes, and the high had access to hand written books and the knowledge within. Invented was the printing press, books and information was no longer controlled.

As with the central banks monopoly on fiat, bitcoin is like the printing press. Central banks will lose power, as has kings.

A radical shift in global finance is afoot. 
Take the power from banks and government and it's a whole new ball game.



Back to top
 

Bitcoin ~
Best form of Universal Ledger humanity has ever seen 
 
IP Logged
 
Ajax
Gold Member
*****
Offline


CO2 has never controlled
temperature on Earth

Posts: 6050
Australia
Gender: male
Re: IMF : 9 Biggest Banks Not Financially Sound
Reply #12 - Oct 14th, 2017 at 9:47am
 
___ wrote on Oct 13th, 2017 at 4:01pm:
Prior to the printing press, only kings, popes, and the high had access to hand written books and the knowledge within. Invented was the printing press, books and information was no longer controlled.

As with the central banks monopoly on fiat, bitcoin is like the printing press. Central banks will lose power, as has kings.

A radical shift in global finance is afoot. 
Take the power from banks and government and it's a whole new ball game.


Its our government who should print its own money not a hand full of private bankers calling themselves the central bank of some particular nation.

If our government has the right to print its own money, why let the private bankers print it only to borrow it from them and pay INTEREST on this money.

Our government and all governments around the world have the right to print their own money and not pay interest to f@rking private bankers.

The assassination of Abraham Lincoln was more than some mad man who lost his marbles.

Quote:
"The government should create, issue, and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of consumers. The privilege of creating and issuing money is not only the supreme prerogative of government, but it is the government's greatest creative opportunity. The financing of all public enterprise, and the conduct of the treasury will become matters of practical administration. Money will cease to be master and will then become servant of humanity."   Abraham Lincoln



Quote:
"I have two great enemies, the southern army in front of me and the financial institutions, in the rear. Of the two, the one in the rear is the greatest enemy..... I see in the future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until wealth is aggregated in a few hands and the Republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of the war." - Abraham Lincoln
Back to top
« Last Edit: Oct 14th, 2017 at 9:55am by Ajax »  

1. "There has never been a more serious assault on our standard of living than the carbon tax." Ajax
2. “Scratch the average homosexual and you will find a pedophile" Kevin Bishop (homosexual)
 
IP Logged
 
Ajax
Gold Member
*****
Offline


CO2 has never controlled
temperature on Earth

Posts: 6050
Australia
Gender: male
Re: IMF : 9 Biggest Banks Not Financially Sound
Reply #13 - Oct 14th, 2017 at 10:01am
 
Back to top
 

1. "There has never been a more serious assault on our standard of living than the carbon tax." Ajax
2. “Scratch the average homosexual and you will find a pedophile" Kevin Bishop (homosexual)
 
IP Logged
 
Page Index Toggle Pages: 1
Send Topic Print