Economy & Banks

For a dodgy bank look no further than Wells Fargo.

DB's tier 1 capital is 11% - 1.5% short of the target set by the regulator, if I recall.

It may have the cash for the fine, but their liabilities would reduce by a commensurate amount.

That means P&L, and that comes straight out of its equity - further impacting it's capital gearing.

Even without the fine, the capital position is not good.

The price may bound around a bit, but nobody is injecting a big lump of capital, and nobody is buying its assets.

on bloomberg
new charges being drawn up against db's russian arm for ignoring the economic embargo against russia

DB raising capital by slashing headcount.

'Cos that always ends well...

Cash in them cocos, guyz.

Also, sterling takes a battering because of a dodgy algo trade or 20.

Good to see the regulators staying on top of that sort of thing.

deutsche being investigated in italy for false accounting and hiding loses of a couple of italian mid tier banks

^ I call sour grapes on the Italian government regulators about Germany blocking the bailout of Monte dei Paschi, and wanting to make sure that Deutche gets in as much trouble as possible.

What does this mean in real terms?
http://www.bbc.co.uk/news/business-37838087

A major spike in cost of living and a decline in living standards unless your employer is generous enough to give you inflation beating pay rises.

Disproportionate impact on the poor.

Most middle class families can take the hit by looking at their food waste and cutting back on their Pinot and latte consumption.

Higher interest rates

maybe

if not, your cash savings get fucked a bit more

u mad bro

Banks globally have paid $321 billion in fines since 2008 for an abundance of regulatory failings from money laundering to market manipulation and terrorist financing, according to data from Boston Consulting Group.

nice

This is quite an interesting read about the origin of many of today's problems and the dismantling of the initial post-war consensus:

https://www.theguardian.com/news/2018/sep/07/the-real-goldfinger-the-london-banker-who-broke-the-world

lost me at ...

1 Attachment

Literally. this is a problem. I can't be arsed to read any more. I buy books and they never get read; I need to stop watching Netflix. Kill your telelvision. :)

By the way, you read Factfullness?

Now that's a short read if ever I've seen one.

By the way, you read Factfullness?

No, I've never read heard about it.

https://www.theguardian.com/news/2018/oct/05/the-finance-curse-how-the-outsized-power-of-the-city-of-london-makes-britain-poorer

Interesting article .. fairly typical of the guardian tbh..but the real shame of the success of the finance industry and the North sea oil that we have not invested in a sovergn wealth fund.
Look to Norway to see it's potential.
The revenue was used to fund tax cuts for the wealthy over the 80s and 90s.

Yeah, the UK's a bit of a Wild West. :)

Yep it's every man for himself mentality.. as opposed to trying to build a society that uses collective power to help those that needed it. Or heaven forbid saving for a rainy day.
Remember when new labour thought they had revolutionised the world economy and banished boom and bust.

banished boom and bust.

Well perpetual Austerity does avoid boom&bust.

new labour thought they had revolutionised the world economy and banished boom and bust

Yeah, Brown's ultimate hubris. Cheap credit for longer boom, longer bust. Prudence went out the window in favour of self congratulation.

Well done fellow. The Torys would be proud.

There are plenty of issues with financial services that can be discussed and need to be addressed but this piece has many inaccuracies, highly misleading statements and weak arguments. It is only stirring, not trying to convince.