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France and Germany will reportedly call today for a relaxation of global bank capital rules to...

France 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.
Comments (6)
  • untrusting investor
    , contributor
    Comments (9964) | Send Message
    Sounds like they want to let banks have negative capital now. Guess none of the big boys want to show or take all those huge losses sitting on their books now.
    23 Jan 2012, 03:22 AM Reply Like
  • Dr. V
    , contributor
    Comments (1179) | Send Message
    EBA needs to step in with European Supervisory Authority and drop the hammer on Germany specifically. Their ONLY TWO (2) retail banks left, Commerzbank and Deutsche Bank are not able to borrow another buck, and teetering on insolvency, of course Germany continues to stoically deny this in the Press.


    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.
    23 Jan 2012, 04:06 AM Reply Like
  • UndiversifyBC
    , contributor
    Comments (79) | Send Message
    These folks are almost unbelievable. They seem to be doing anything they can to try to make sure shareholders, bond holders, or govt officials from their countries France & Germany don't get hurt from the big mess they benefited the most from.


    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.
    23 Jan 2012, 04:17 AM Reply Like
  • Gregor_MacGregor
    , contributor
    Comments (79) | Send Message
    DB was at 65:1 in 2007 and now its 44:1 as far as I know...wasn't aware that this was hidden?
    23 Jan 2012, 05:46 AM Reply Like
  • Dr. V
    , contributor
    Comments (1179) | Send Message
    Correct. But what they are trying to hide is, Deutsche Bank was listed in May 2011 with debt of 1.6 Trillion Euros, and assets of only 1,89 Trillion Euros.


    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.
    23 Jan 2012, 10:18 AM Reply Like
  • oli61
    , contributor
    Comments (2) | Send Message
    Where you get politicians ... , you get sheet ... Countries should be ruled by technocrats, not politicians who put always forward "their political cost" ...
    23 Jan 2012, 01:25 PM Reply Like
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