Archive for the 'Banking' Tag

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Germany: Bank Robbers ante portas

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There was a lot of hectic movement with governments around the world the last weeks to confine the disasters from betting / wild casino speculation within financial institutions. Approaches and road maps laid out (if any) are pointing to different directions even in the key G7 developed countries.

The U.S. – for example – first wanted to give absolute powers to the executive branch and the government – a move widely criticized and changed by the U.S. Congress in the debates following the first bailout plan.

France and the UK have taken another road and bailing out their banks by providing funds only against a collateral – meaning they are de-facto nationalizes key players in their finance industries. France even went a step further with President Sarkozy calling for the creation of national industry funds to stop the fire sales of key industrial players to overseas investors – an interesting step that found much applause with the European Parliament. If you think that further it…

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Financial Crisis: How to say good by in style

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One of the big questions and one some of us are getting asked quite a few times these days is it already time to buy back or still better to wait was answered by a Californian hedge fund manager – Andrew Lahde – who made one of the biggest percentage profits of all time and bowed out of the business last Friday with a fierce attack on the “idiots” running big banks who were willing to take the other side of his bets.

He also demonstrated how to say good by in style (when you’ve made your profit).

Below a quote from the letter he sent out and published on the INet (link to full text below)…

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Financial Crisis 101: Why CDS could never work

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Many still call or describe CDS (Credit Default Swaps) as a kind of insurance policy against credit risk to limit the risk of the lender. Well that might be so in their dreams or it has been used as a camouflage by the bankers to persuade the investors of the quality – or to mislead them on the lack of it – and suggest that there would be an underlying asset.

And that’s were all the problems start. To issue or construct a CDS there was never a requirement to actually being linked to, i.e. having provided or taken out the credit or having an contractual agreement with these two parties.

Everybody could issue CDS completely unregulated and unlimited. This is of course the reason for the incredible amounts being pushed around and it also provides the reason that – in rare cases CDS might have been an insurance against credit defaults – but in general these papers were only betting slips if certain events might occur most similar to betting on horses or dogs races.

If these instruments would have only been allowed to use for …

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Humor: Music videos about the Financial crisis

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Four music videos on the banking crisis based on some all time classics – from Elton John’s Candles in the Wind / Bankers in the Wind to Billy Joel’s We Didn’t Start the Fire / Wall Street Meltdown

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AIG: Execs went on leisure retreat – Taxpayers to foot the 500K bill

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If you thought there might be some business ethics coming back to today’s executives in the banking business – think again. Looking at the biggest mess in worldwide finance ever created in mankind’s history and those guys still believe its business as usual. You hear stories of so-called executives that are leaving their sinking ships with severity / separation packages worth hundred of millions of dollars – at the same time their employees are left with nothing and many particularly the younger ones looking into a very gray future.

These are seemingly the signals sent out by the cover up plans hammered through these days by governments around the world – grab as much as you can today – we don’t know if we can sponsor your fat bonuses and pays with taxpayer subsidies in the near future. And don’t be shy – a hundred millions might not be as much tomorrow and you know – you did study economics and understand what happens as a result from these FED and other interventions with regards to inflation – don’t you?

Now one of the best indications what those people think has been provided during the House’s Oversight Committee hearing on AIG today. Just a week after the government agreed to bailout the tumbling AIG with USD 85 Billion of taxpayer money, the executives of AIG went on a leisure break spending almost USD 500K on manicures, massages, luxury dinners and hotel rooms…

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Video: Why the Bailout won’t work

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This video has just been published but reality at the stock markets around the world has already been showing us how true some of these statements actually are.

The video puts the so-called 700 Billion bankers pensions and further profit plan Bailout plan into perspective with the Trillion Dollars Pentagon SNAFU, the actual size of the crisis (we have reported about that earlier) and the amounts currently being flooded into the banks / markets by the FED…

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