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France and Germany will reportedly call today for a relaxation of global bank capital rules to...
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Monday, January 23, 2012, 3:06 AM ETFrance and Germany will reportedly call today for a relaxation of global bank capital rules to ensure lending isn't choked off. The countries will urge special treatment for banks that own insurance companies, and call for a three-year delay to the mandatory deadline to disclose leverage ratios.
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EBA warned of consequences of not meeting the CRD. During the crisis it has become clear that banks have not set aside sufficient levels of provisions for credit risks on loans originated during the 'good' economic years. Germany is one of the most notorious examples, they preach their "draconian austerty" policy, yet are so far in debt they could NEVER hope to service it.
According to the current CRD:
"In order to ensure fast and effective enforcement, competent authorities should also have the power to impose either financial or non-financial measures or penalties for breach of a requirement under Directive 2006/48/EC, including the requirement to have remuneration policies that are consistent with sound and effective risk management. Those measures and penalties should be effective, proportionate and dissuasive."
Start with Germany, and the rest will have to fall in line. An example needs to be made here.
If everything is so wonderful, and they (Germany) are soooooo strong, where's the money? Surely, record export must account for profit? So where is it? (Foreign Banks aren't holding it, that's been checked).
?
It's not rocket science, all the phony export numbers would mean HUGE profits, yet the banks, all TWO (2) of them, are empty.
?
It's all bullsh*t.
Of course, at the same time they demand everyone else have bread & water for the foreseeable future and if you don't want to play, as Great Britain has chosen, they have a fit.
It's an unfortunate situation but France & Germany probably deserve what they may ultimately get.
That's before the market tanked in August and ALL of the German companies, including >Deutsche Bank, lost not only 50% of their share price, but also 50% of their Mkt. Cap. The DAX is only @6400 ish, it was @ 7500 when things went sideways. They will NEVER recover that debt. They will leave the EU and filter the losses through a well planned series of reports blaming all their losses on the periphery.