Collapsing Global Banking? Signpost to watch!

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Collapsing Global Banking? Signpost to watch!

Goldman Fires Dozens Of Investment Bankers

Following an abysmal quarter for investment banks around the globe, which saw salary cuts across the board as a result of sliding revenues in virtually all product areas, we forecast that the next logical step will be ongoing major layoffs of some of the world's highest paid employees. This morning none other than the most insulated from global financial troubles bank confirmed just this when Bloomberg reported that Goldman had quietly cut investment banking jobs in the last few weeks, joining securities firms that are adjusting to a slowdown in deal activity.




Deutsche Bank ATM's block withdrawals, technical glitch?


Europe’s STOXX 600 Banks Index sank 5.4% this week (down 2.17% Friday), increasing 2016 losses to 19.6%. Italian bank stocks were clobbered 8.4% (down 2.84% Friday), ending the week just off of early April’s three-year lows. Italy’s banks closed the week down 39% y-t-d. The Italian stock market (MIB) was down 3.8% this week, increasing y-t-d losses to 18.3%. Spanish stocks (IBEX) dropped 3.4%, increasing 2016 declines to 7.8%. Germany’s DAX fell 1.9% this week and France’s CAC 40 dropped 2.1%. European equities are quickly giving back what had been an unimpressive rally...... they will exit from this collapsing scenario?



Today, subprime is back.

There’s been a lot of talk lately about a growing bubble in the subprime auto loan market, and even student loans.

But the biggest subprime bubble of all is the negative interest loans being made to sovereign governments.

All over the world now there are governments that are issuing sovereign bonds with negative yields… and many of these governments are totally bankrupt.

Japan, with its debt level at more than 220% of GDP, is the latest entrant into the world of negative interest bonds.

Japan’s debt is so high, in fact, that it takes 41% of government tax revenue to service.

Even in Italy, one of Europe’s most notoriously and hopelessly bankrupt countries, the government bonds have negative yields.

‘Negative yield’ means that an investor who loans money to government will get back less money than s/he invested once the bond matures.

In other words, the government is getting paid to borrow money.

So it’s not much different than when banks paid subprime homeowners to borrow money ten years ago based on a misguided premise that home prices always go up.

Now they’re just paying subprime governments to borrow based on a misguided premise that governments will ALWAYS pay. (Just like Greece!)

The key difference is size. At the peak of the housing bubble ten years ago, there was about $1.3 trillion worth of subprime mortgages in the financial system.

That $1.3 trillion bubble was enough to bring down several major banks and cause cascading damage across the global financial system.

Today’s bubble is EIGHT TIMES the size of the last one, with more than $10.4 trillion worth of government bonds that yield negative interest.

And what’s even more concerning is how quickly it’s growing.

In January 2016, the total amount of government bonds in the world with negative interest totaled $5.5 trillion.

One month later in February the total had grown to $7 trillion. By May it was $9.9 trillion. And today it’s $10.4 trillion.

So this gigantic sovereign bond bubble where governments are being paid to borrow money has practically doubled just in the last several months.

This isn’t a cause for panic or to assume that the financial system is going to crash tomorrow.

But it’s clearly a disturbing trend… the proverbial powder keg in search of a match.

And when future pundits write the history of the financial crisis to come, whether it happens today, tomorrow, or years from now, you can bet they’ll wonder how the entire system failed once again to see something so dangerous… and so obvious.


Those in the “leave” or “Brexit” camp are in the headlines citing a long list of understandable issues:  economic underachievement, immigration, lack of transparent democratic processes; frustration with challenges seemingly beyond the control of local governments.  They fail, however, to mention the real issue that is a risk to today’s financial markets. 

The real issue should be known to Europe’s politicians and especially understood by its central bankers.   The real issue is debt and how its tentacles spread throughout Europe and indeed the world.  The Euro as a currency is not just flawed; it’s also the financial equivalent of a thermonuclear debt bomb.  Its many and terrible design failures make it dangerous.  Its designers and defenders either don’t want to acknowledge its shortcomings or, even worse, are simply unaware of them.  Let us explain.

Europe’s banks are bigger, more leveraged, and more indebted than U.S. banks....

...from Capital Wealth Advisors


 Time Price Research,

China has completed its cycle as a high-growth, low-wage country and has entered a new phase that is the new normal.

China will continue to be a major economic force but will not be the dynamic engine of global growth it once was. International capitalism requires a low-wage, high-growth region for high rewards on risk capital. In the 1880s it was the United States, for example. China was the most recent region, replacing Japan. No one country can replace China, but we have noted 16 countries with a total population of about 1.15 billion people where entry-level manufacturing has gone after leaving China. Identifying the Post-China 16 countries is not a forecast. It is a list of countries in which we see significant movement of stage industries, particularly garment and footwear manufacturing and mobile phone assembly.

The Post-China 16 countries are strictly successors to China as low wage, underdeveloped countries with opportunities to grow their manufacturing sectors dramatically.

....of course there is a serious problem with this overall scenario!
Without high rewards on risk capital in China...the bloated China banking sector will collapse......whatever the time frame....this trend guarantees it! 


..... from James Butterfill, head of research and investments at ETF Securities, summarized it best: "It’s scary, and I’ve never seen anything like it. We’re going to see outflows from basically any kind of cyclical asset. A lot of people were caught out, and many investors will lose a lot of money.”


Globalist Bankers Sent Into Mass Panic Over Brexit

Steve Watson

The world’s major banks have been instantly absolutely hammered by the decision. The markets had heavily bet on the UK remaining in the EU.

Britain’s biggest banks faced double digit losses on the stock markets, with shares plunging. Barclays dropped by 23.08% to $8.60, HSBC shares dropped 7.35% to $31.25, Royal Bank of Scotland sunk a whopping19.63% to $6.02.


All in all at the time of writing, Britain’s banks were facing a $100 billion smackdown, while world stocks saw more than $2 trillion wiped off their value.

The British pound took a massive nosedive by 18 U.S. cents, hitting 31 year low, reaching a 10 percent plunge at one point, and marking by far the biggest drop in recent history. The euro also dropped by 3 percent, with investors fearing it may eventually completely collapse altogether.


In the US, JPMorgan Chase shares were down 6.26% to $60.04. Bank of America shares fell 6.34% to $13.15, Citigroup shares dropped 8.3% to $40.77, and Wells Fargo dived 4.7% at $45.66.

The big investment banks were also hit hard with Goldman Sachs shares down 5.26%, and Morgan Stanley shares dropping 8.57% to $24.94.

Almost every major financial institution was forced to declare that they will provide emergency liquidity to stabilise the global economy.......

....emergency liquidity?

And where pary tell will this come from? What with banks ratings already in jeapordy, way overleveraged holding billions, trillions of toxic waste corporate bonds and derivatives.....

why from the government of course! We the People...and how about the stealth introductions of bail in clauses (In Canada with Harpers 2013 budget!) so expect the high end workers bank accounts to be discounted...then watch the flood gates...

whew all scary enough...but will it motivate people to take action?


Barclays, HSBC Have Outlook Cut by Moody’s After Brexit Vote  Sarah Elizabeth Chaney  from Bloomberg


....... Monday morning the local media reported that Renzi's
government was pursuing a six-month waiver of EU state-aid rules,
allowing it to shore up banks without forcing investors to share losses. Two days ago, when we first reported of Italy's proposed bank rescue plan, we said that the chairman of Lower House’s Finance Commission, Maurizio Bernardo, confirmed that the government is studying options to support the banking sector, including a capital injection, and said a law decree “with measures going in that direction” could be approved by the end of this week. 

We pointed out that how such an intervention would be implemented was unclear; it was is also unclear how such a direct state recapitalization of Italian banks using public funds would be permitted by current EU and ECB regulations, which prohibit state bailouts of insolvent banks, although Europe has a long and illustrious history of finding massive loopholes to that particular prohibition. "Last but not least it is unclear how existing stakeholders, shareholders, bondholders and uninsured depositors, would be impaired under such a bailout."

Well, they wouldn't, despite Europe's recent implementation of bail-in rules. That was the whole point.

However, while Italy was hoping it would get a "pass" on using public funding, mostly Eurozone generated and thus courtesy of Germany, this appears to have hit a dead end moments ago, when Bloomberg reported that Germany opposes any attempt to shield private bank investors from losses if Italy pushes ahead with plans to recapitalize lenders. Chancellor Angela Merkel’s government says that European Union rules on handling struggling banks should apply in any rescue effort, including forcing losses on shareholders and some creditors before public money can be injected, the person said, declining to be identified because the deliberations are private.


...this is just temporary! The fix is set...a major crisis soon will force major bank bailouts with public money...and bailins with depositer accounts!

Ready? For increasing austerity? The elites cannot let the European banking sector collapse!


Overnight DB also said that, "while UK politics has dominated headlines for the last few weeks it feels like the health of Italian Banks could well takeover in the near term."

Which brings us to the latest catalyst, namely reports that the ECB has asked perpetually troubled, insolvent and repeatedly bailed out Banca Monte dei Paschi di Siena, the world's oldest bank, to draw up a plan for tackling its bad-loan burden, asking the lender to reduce its load of soured debt to 14.6 billion euros ($16.2 billion) in 2018 from 24.2 billion euros at the end of 2015, Italy’s third-biggest bank said in a statement Monday.

As a result, Monte Paschi was halted after tumbling for yet another day to fresh new record lows, while the Italian bank sector tumbled in Milan on Monday amid fresh concerns the country’s lenders are under pressure to raise capital to bolster their finances.....

from zerohedge


A Look Inside Europe's Next Crisis: Why Everyone Is Finally Panicking About Italian Banks...from zerohedge and Wall Street Journal......

.....getting pretty close to the edge...meaning bailins and bank runs...and of course not just'll be a domino effect encompassing all of Europe first!

Brexit, the final catalyst for the collapse of the global financial ponzi scam?


The Big-Bank Bloodbath: Losses Near Half a Trillion Dollars At 20 big banks, plunging share prices this year have erased a quarter of their combined market value...from WSJ!


This confirms what had long been speculated, if not confirmed, namely that German banks have been some of the biggest lenders to the shipping sector, a sector which has since found itself in significant trouble as a result of the ongoing slowdown in global trade.

And now, it appears that some shipping loans gone very bad could be the catalyst for Europe's banking crisis to finally breach the most impenetrable border of all, that of Germany.

Because it is in Germany where we find what may be the next domino to fall as part of Europe's latest banking crisis incarnation: Bremen Landesbank....from zerohedge


The global recession has collapsed world trading.....shipping is in interesting to note which are the banks on the front lines!...just watching the dominoes fall....


EU Banks Need $166 Billion, Deutsche Bank Economist Tells Welt Gavin Finch GavinFinchBBG.......... here we go...and as if any of the mainline Parties would ever dare challenge the right of the banksters to debase the fiat currencies, continue their wars to boost the remaining profitable industry and thereby promote austerity and social programming cuts, after of course the governments have maxed out their debts to the banksters......


from today;s Bloomberg...IMF demands structural reforms to the Italian Banking crisis amid proposals for investor bail ins...

...what they have in mind of course are serious bank restructurings..... including writedowns of bank debt? Austerity programs aside government subsidy programs?
Either way the finances are crumbling, the political fallout of course increasing support for the alternative policis Parties!
So here in Canada when? will be begin looking for our alternatives!! 


while we wine and dance the summer away...the real world, for which our livlihoods and fragile governance infrastructure depend, the world of paper shuffling and exotic manipulations brought on by the best and brightest minds? continues its adventure into the depths of the abyss......


Deutsche Bank Set for Investor Scrutiny as Short Sellers Circle Nicholas Comfort nickcomfort Justin Villamil justin_villamil Julia HirschJuly 24, 2016 — 3:00 PM PDT

  • German lender will report second-quarter earnings on July 27
  • Deutsche Bank has lost 42% of its market value this year


Deutsche Bank AG’s John Cryan will try to convince investors this week that his efforts to turn around Europe’s biggest securities firm will succeed. It’s a narrative that’s becoming harder to sell.

The quarterly update on Wednesday comes nine months after Cryan announced plans to cut thousands of jobs and shrink risky assets to boost profitability and capital levels. The chief executive officer has since had to put the sale of German consumer lender Deutsche Postbank AG on hold, scrap the development of a “digital bank” and contend with the departure of several senior bankers.

The stock has lost more than half its value over the past year, and hedge funds including Marshall Wace LLP have bet that the shares will fall further. Analysts have signaled concerns about the capital strength of a company that has some of the biggest holdings of complex assets and derivatives among European banks.



Bloomberg reports, the bank’s 1.75 billion euros ($2 billion) of 6% additional Tier 1 bonds, the first notes to take losses in a crisis, are crashing... as the world's most systemically dangerous bank faces existential problems once again.

Deutsche Bank AG’s riskiest bonds plummeted after the German lender received a $14 billion claim from the U.S. Justice Department to settle an investigation into the firm’s sale of residential mortgage-backed securities.

“They are dropping like a stone,” said Tomas Kinmonth, a credit strategist at ABN Amro Bank NV in Amsterdam. “The fine, even if reduced, could surpass all provisions held by the bank.”............

.....This of course is a check mate situation for the global banksters....while they consider further QE mechanisms to prop up the failed financial system, their hopes to focus on negative interest rates....only puts greater pressure on the survivability of the ¨too big to fail¨ banks.....



I think I have seen the signpost: 

Russia is seriously running out of cash


Russia as an emerging market economy is no less vulnerable to a global banking collapse and hyperinflation of fiat currency, although they have the advantage of not being so totally under the control of corporatism...they are moving to a new financial system and currency based on precious metals...another advantage they have is their greater self sufficiency, in capital indiustrial production, (organic) food production plus of course their energy surplus...meanwhile North America has become the most vulnerable what with the loss of our industrial sector and dependency of raw matwerial export crops...

Needless to say, Canada`s political system leaves no opening presently for this reality...everyone is in bed with corporatism and fiat currency accumulation....I fear it will take this imminent financial crisis to wake people up to alternatives (certainly people here in these threads have no interest presently!), but my oft expressed fears of course is that under martial law and financial scarcity not to mention economic depression we will have little room to do anything!


Ominously, European banks were back in the markets’ crosshairs. Deutsche Bank was hammered 12.3% this week, boosting y-t-d losses to 45%. Europe’s STOXX 600 Bank Index sank 5.6% (down 24% y-t-d). Italian banks were slammed 9.4% (down 50% y-t-d). Italy’s Monte dei Paschi was clobbered 9% Friday, while UniCredit sank 5.8%. It was not only European banks under pressure. Japan’s Topix Bank index dropped 4.3% this week (down 29% y-t-d), while Hong Kong’s Hang Seng Financials fell 4.2% (down 1.7% y-t-d). U.S. Banks dropped 1.6% (down 3.7% y-t-d). ....

....will this coming week´s Central Bank meetings in USA and especially in Japan again back up the faltering banks?

Any lukewarm or confusing statements will spell the unfolding of a worst possible scenario....


September 23 - CNBC (Katy Barnato): “Toxic loans in the Chinese financial system could be 10 times as high as official estimates suggest, Fitch Ratings has warned. The international ratings agency said in a report on Thursday that, as a proportion of China's total loan pool, non-performing loans (NPLs) could be as high as 15-21 percent. By comparison, official data put the NPL ratio for commercial banks at 1.8%... ‘There seems a high likelihood that banks' NPL ratios will continue rising over the medium term, in light of this discrepancy. There are already signs of stress, most obviously in the increased frequency with which banks are writing off or offloading loans, such as those to asset-management companies’… Solving China's bad loan problem would result in a capital shortfall of 7.4 trillion-13.6 trillion yuan ($1.1-2.1 trillion), equivalent to around 11-20% of China's economy, Fitch said.”'s hard to predict where the final catalyst will come in China...or Japan, or the failing German and Italian banks?


uh..oh...thankfully this is a markets yet open......


Merkel Rules out Assistance for Deutsche Bank, Focus Reports Patrick Donahue patrickjdoSeptember 24, 2016 — 9:45 AM PDT 

  • Chancellor also won’t step into U.S. legal issue, Focus Says
  • Spokespeople for German bank, government decline to comment


Chancellor Angela Merkel has ruled out any state assistance for Deutsche Bank AG in the year heading into the national election in September 2017, Focus magazine reported, citing unidentified government officials.

The German leader also declined to step into the Frankfurt-based bank’s legal imbrogliowith the U.S. Justice Department, which may seek as much as $14 billion in sanctions against Deutsche Bank’s mortgage-backed securities business, the magazine said. A German government spokesman declined to comment on the report Saturday. A Deutsche Bank spokeswoman also wouldn’t comment.

The finances of Germany’s biggest lender, which has lost almost half of its market value this year, are raising concern among German politicians. At a closed session of Social Democratic finance lawmakers this week, Deutsche Bank’s woes came up alongside a debate over Basel financial rules, according to two people familiar with the matter.



The Run Begins: Deutsche Bank Hedge Fund Clients Withdraw Excess Cash  by Tyler Durden Sep 29, 2016 12:34 PM

Michael Moriarity Michael Moriarity's picture

iyraste1313 wrote:

The Run Begins: Deutsche Bank Hedge Fund Clients Withdraw Excess Cash  by Tyler Durden Sep 29, 2016 12:34 PM

Is this it, then? Deutsche Bank will be coming down in the next 2 weeks, and the German and world economy soon thereafter? Or what?


Geez, - hopefully not before the World Series. 



Italian banks threatening to sue Deutschebank!! Another multibillion fine?

Deutsche you must appreciate is world leader in counter parties to global cannot be allowed to go down.....or the global financial system will go down!

So it must be bailed out by the German Government! But The Germans have refused to permit the Greeks, the Italians from their own bqailouts?

Not yet sure how this will play out...but it's all leading to the same; global financial collapse.......

It's pretty disgraceful such ridicule of the 'real world', here......but not surprising...the gatekeepers are alive and well on rabble!

Timebandit Timebandit's picture

Gatekeepers?? I had no idea we were so important. Also noticing you still don't like links.

Mr. Magoo Mr. Magoo's picture

I had no idea we were so important.

Nor so ineffective. 


Red Alert: Prepare For Severe Stock Market Crash, Warns HSBC

"The possibility of a severe stock market fall in the stock market is now very high."


October 12 – CNBC (Huileng Tan): “China's economic transition has caused a problem for the government—how to avert a sharp slowdown while keeping a lid on ballooning debt. In a report Thursday, rating agency Standard and Poor's highlighted the ‘tough choice between supporting growth and controlling debt sustainability’ as China tries to find new ways to fund public investments. ‘Although aggregate and provincial GDP growth stabilized in the first two quarters of 2016, we believe the fiscal conditions of Chinese local governments are under more pressure given the weakened economy,’ S&P wrote… The rising debt pile of local government financing vehicles (LGFV) raised questions on credit risks, said S&P.”

........this week, China is back in the picture...which will be the catalyst for the total global financial paralysis? Maybe it will be China!


renzireferendumBy Whitney Webb

After the UK voted to leave the European Union in June, populist movements throughout the Eurozone have gained popularity. Though no other European countries are set to vote on leaving the EU, the strength of populism threatens the passage of an Italian constitutional referendum set to take place this upcoming Sunday, December 4th.

The December referendum, championed by current Prime Minister, Matteo Renzi, seeks to greatly reduce the power of the nation’s Senate as well as its regional governments, making the executive branch significantly more powerful. Renzi has staked his position on Prime Minister on the referendum’s outcome, vowing to resign if the referendum fails.

However, Renzi is not the only one who could suffer if the referendum fails. Not one, but eight of Italy’s largest banks “may fail” if Italians vote against the measure, according to senior bankers who spoke to the Financial Times. Many of Italy’s largest banks have been in crisis for quite some time and largely considered to be completely insolvent as Italian banks, overall, hold €360 billion in bad debt yet only have €225 billion of equity. Renzi’s hands have been tied regarding how to address the crisis thanks to new EU banking regulations and has since championed a “free market” solution, which unfortunately has proven near impossible due to the magnitude and prevalence of bad debt among Italian banks.


Of course the big thing to keep an eye on over the coming weeks is the rapidly unfolding crisis in Italy.  The Italians have the 8th largest economy on the entire planet, and we are in the process of watching their entire banking system completely implode.

In fact, their third largest bank is in imminent danger of collapse, and according to Reuters this could trigger “a wider banking and political crisis in Italy”…

Italy’s government is ready to pump 15 billion euros into Monte dei Paschi di Siena (BMPS.MI) and other ailing banks, sources said, as the country’s third-largest lender pushes ahead with a private rescue plan that is widely expected to fail.

The world’s oldest bank has until Dec. 31 to raise 5 billion euros ($5.2 billion) in equity or face being wound down by the European Central Bank, potentially triggering a wider banking and political crisis in Italy.

If needed, the government will pump 15 billion euros into the Siena-based lender and several other smaller banks to prevent that, two sources close to the matter said on Thursday.

  Stay tuned...the North American hyperinflating stock market may have hit its peak...what with zero fundamentals to back the craziness!



The Italian Bank Run: Monte Paschi Capital Shortfall Surges 75% To €8.8Bn Due To "Rapid Liquidity Deterioration"...from zerohedge



As Mystery Of China's Multi-Billionaire Default Deepens, A New "Bond Scare" Emerges...from zerohedge

...a rout in China´s bond market  in the making, the fuse for collapsing of its 30 trillion credit system?


U.S. Quietly Drops “Financial Bombshell”: Wall Street Banks Have $2 Trillion European ExposureBy Pam Martens and Russ MartensGlobal Research, January 04, 2017Wall Street on Parade 3 January 2017Region: EuropeUSATheme: Global Economy


Just 17 days from todayDonald Trump will be sworn in as the nation’s 45th President and deliver his inaugural address. Trump is expected to announce priorities in the areas of education, infrastructure, border security, the economy and curtailing the outsourcing of jobs. But Trump’s agenda will be derailed on all fronts if the big Wall Street banks blow up again as they did in 2008, dragging the U.S. economy into the ditch and requiring another massive taxpayer bailout from a nation already deeply in debt from the last banking crisis. According to a report quietly released by the U.S. Treasury’s Office of Financial Research less than two weeks before Christmas, another financial implosion on Wall Street can’t be ruled out.

The Office of Financial Research (OFR), a unit of the U.S. Treasury, was created under the Dodd-Frank financial reform legislation of 2010. It says its role is to: “shine a light in the dark corners of the financial system to see where risks are going, assess how much of a threat they might pose, and provide policymakers with financial analysis, information, and evaluation of policy tools to mitigate them.” Its 2016 Financial Stability Report, released on December 13, indicates that Wall Street banks have been allowed by their “regulators” to take on unfathomable risks and that dark corners remain in the U.S. financial system that are impenetrable to even this Federal agency that has been tasked with peering into them.

At a time when international business headlines are filled with reports of a massive banking bailout in Italy and the potential for systemic risks from Germany’s struggling giant, Deutsche Bank, the OFR report delivers this chilling statement:

“U.S. global systemically important banks (G-SIBs) have more than $2 trillion in total exposures to Europe. Roughly half of those exposures are off-balance-sheet…U.S. G-SIBs have sold more than $800 billion notional in credit derivatives referencing entities domiciled in the EU.”

When a Wall Street bank buys a credit derivative, it is buying protection against a default on its debts by the referenced entity like a European bank or European corporation. But when a Wall Street bank sells credit derivative protection, it is on the hook for the losses if the referenced entity defaults. 



Turkish Lira Carnage Continues: "Prepare For The Messy Endgame"....zerohedge

5 year treasuries went over 300 basis points? Where are the derivative trades and counterparty banks heading here?

Italy, Turkey. Brazil, Venezuela...who´s next?