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Posts tagged ‘Central Bank’

Tip of the Day Get you money out now from AIB and Bank of Ireland!

European Central Bank president Mario Draghi has raised concerns about the health of Irish banks, urging “decisive” action on issues revealed by a recent balance-sheet assessments before European stress tests next year.

Addressing the European Parliament, Mr Draghi said while the balance-sheet assessments of the Irish banks had identified no capital shortfall, there were needs for adjustments for provisions and risk-weighted assets.

“This should be addressed before the SSM assessment,” he said in a response to a question from Irish MEP Gay Mitchell.

Under the original terms of Ireland’s EU-IMF rescue, Ireland was obliged to undergo a full health check of its banks before the end of the programme.
Stress tests However, this was downgraded to a “balance-sheet assessment” after Dublin argued it should not be treated differently from other countries in next year’s Europe-wide stress tests.

Mr Draghi emphasised yesterday that the balance-sheet assessments by the Irish Central Bank were “not forward-looking” and fall short of the “stringent” stress tests that would be required next year.

Ireland’s three main banks – Bank of Ireland, AIB and Permanent TSB – informed the market last month the Central Bank tests had been completed and that no capital requirements had been required.

However, the full results of the tests were not published.
Commercial loans Bank of Ireland revealed that the Central Bank had concluded that it should take an additional €1.3 billion in provisioning against its mortgage and commercial loans, while Permanent TSB chief executive Jeremy Masding told The Irish Times that the bank would be taking extra provisions for bad loans following the reviews. AIB has yet to comment on whether provisions are needed.

Mr Draghi also said the ECB had “a more cautious assessment” of Ireland’s budget for 2014 even if targets were likely to be met. However, he noted that the deficit-to-GDP ratio, which has been credibly set at 4.8 per cent, overperforms relative to the requirement of 5.1 per cent set out in the European Commission’s excessive deficit procedure.

source: http://www.irishtimes.com/business/sectors/financial-services/draghi-expresses-concern-about-health-of-irish-banks-1.1629952

see also related news: http://www.zerohedge.com/news/2013-04-29/728-trillion-presenting-bank-biggest-derivative-exposure-world-hint-not-jpmorgan

also:http://www.bloomberg.com/news/2013-09-30/bank-secrets-exposed-in-eu-s-credit-derivatives-antitrust-probe.html

Comment:

AAAA

The hidden and off the books derivatives losses by the Irish banks are now becoming so large that even Draghi and his associates are heading for cover ! Once the Irish banks are forced to acknowledge these losses we can expect a cascade effect throughout Europe and all this will land at the door of Deutsche Bank with its $72.8 Trillion derivatives exposures. Still Draghi knows with 156 billion on deposit in Irish banks they can plunder at least 35% of this FREE Cash from the Gullible Irish depositors!

Tip of the Day Get you money out now from AIB and Bank of Ireland!

QE Euthanasia of the Economy?

Today’s Outside the Box comes to us from my good friend and business partner Niels Jensen of Absolute Return Partners in London. Niels gives us an excellent summary of how QE has affected the global economy (and how it hasn’t). I have found myself paraphrasing Niels all week.

I also want to call to your attention an interview first posted at ZeroHedge between my friends Chris Whalen and David Kotok. This is an inside-baseball view of a not-so-minor issue involving central banks and ZIRP. The FDIC charges 7-10 basis points on deposits for the national deposit insurance scheme. At close to the zero bound, the fee means that banks can lose money on deposits. As Chris and David point out, this is just another distortion being fed into the system. David was the first to introduce me to this concept (and rather passionately). I have not written about it because it gets complicated quickly, but it highlights a very serious problem and one that is not dissimilar to the deflationary aspects of the Basel III requirements, working at odds with what central bankers are trying to do. This goes with my long-held contention that the models the Fed and all central banks are working with are simply inadequate to describe the complexity of the global economy, and we have no true idea what we are doing, just a guess and a hope.

full article at source: http://www.marketoracle.co.uk/Article43446.html

ECB to start bank stress tests in November

By MarketWatch

FRANKFURT–The European Central Bank in November will begin a thorough review of the balance sheets of 130 financial institutions from Latvia to Germany, opening a year-long process aimed at removing doubts about the strength of European banks and restoring credit to the private sector.

“Capital shortfalls identified for viable banks should, first and foremost, be made up with private sources of capital,” the ECB said in its report, noting that should that not be sufficient, “public backstops might need to be drawn upon.”

-Todd Buell contributed to this article.

Write to Brian Blackstone at brian.blackstone@wsj.com and Christopher Lawton at christopher.lawton@wsj.com

full article at source: http://www.marketwatch.com/story/ecb-to-start-bank-stress-tests-in-november-2013-10-23

 

Comment:

 

By Thomás Aengus O Cléirigh

AAAA

The Irish Banks in my opinion(Allied Irish Bank and Bank of Ireland are “Broke”:  these zombie banks and have little or no capital, they have hidden derivative losses not to mention enormous mortgage losses and are going to have to get further capital injections and the Irish government doesn’t have the means to recapitalize these toxic banks so the  highlighted section in the article is a clear indication that a smash and grab is been prepared on the depositors of these two banks.

“Capital shortfalls identified for viable banks should, first and foremost, be made up with private sources of capital,” the ECB said in its report, noting that should that not be sufficient, “public backstops might need to be drawn upon.”

So how much money are we talking about? well placed sources indicate that a shortfall of 10 Billion Euros in the magic number .So we can expect a 25-45% contribution from the banks depositors and expect no warning this is likely to be announced over a holiday weekend and reassurances from political puppets and central bankers will be forthcoming just before they pounce on the gullible depositors.

Get you hard earned savings out of these corrupt toxic banks before they get their greedy hands on it!

You have been warned!

see also:http://www.zerohedge.com/contributed/2013-09-07/exactly-i-warned-cyprusization-goes-mainstream-ireland-tap-next-citizen-fund

see also: http://www.zerohedge.com/contributed/2013-10-10/lies-damn-lies-and-eu-confiscation-greek-sovereignty-masked-bailout-never-hap

 

 

 

 

 

 

Irish Economy 2013: Central Bank expects weak growth this year

By Finfacts Team
The Central Bank said today that its expects weak growth this year with a
continuation of the gradual recovery in the overall level of economic activity,
though at a slightly slower pace than previously expected

In its Q4 2013 bulletin [pdf],
the Bank says its latest forecasts for GDP (gross domestic product) growth for
2013 and 2014 are marginally lower than those published in the last bulletin.
GDP growth of 0.5% is now projected for this year, with growth of 2.0% forecast
for 2014, representing a downward revision of 0.2 and 0.1%, respectively, to the
previous forecasts for 2013 and 2014. The forecast for GNP (gross national
product), mainly excluding the profits of the multinational sectors has also
been revised down in a similar fashion and is now projected to grow by 0.1% this
year, and by 1.2% next year.

full article at source: http://www.finfacts.ie/irishfinancenews/article_1026631.shtml

What the Economic Crisis Really Means – and what we can do about it

We were told that the global financial crisis of 2008 happened because irresponsible borrowers couldn’t afford to pay back their loans. This is true, but it was also part of a much deeper problem. The issue is that our economic system is based on the need for continuous, perpetual growth. It’s highly likely that we’re already in the beginnings of something much worse than a depression, even if bankers and governments won’t admit it yet. Fortunately, we don’t need to hear it from them. We can tell that something is going on, we have the internet and we can share information amongst ourselves. And thankfully, if we try hard enough, we could just end up with something much much better than what we have now. I’m no expert, however I am someone who’s done several years of reading on these topics and I really want everyone else to know what’s going on, and understand the risks and the opportunities. It’s only fair.

So let’s look at how our banking system really works. It’s commonly believed that banks lend out money that they already have from invested savings. That would’ve encouraged a fairly stable system of banking. Instead, we have what’s called a fractional reserve banking system. This means that banks can loan out almost all the money that gets deposited with them. For example, when you put $100 in one bank, they lend $90 of it to someone else, who then puts that $90 in their bank. Now there’s $190 where there used to be $100. That $90 lent out will also be deposited and $81 lent again. In this way, money ends up being multiplied between ten and a hundred times. Sounds crazy right? Less than 1% of the money in the economy is actual notes and coins, the rest are just numbers on computers, created as debt. This system rapidly increases the amount of money in the economy, which fuels economic growth, allowing most of us the ability to pay back our debts with interest. But only so long as the economy keeps on growing…………………..

full article at source: http://www.doingitourselves.org/

Gangsters the lot of them!

Tim Healy– 18 July 2013

                    THE Department of Finance and Central Bank conspired with Anglo Irish Bank in relation to its advancing more than €2bn in loans to Quinn companies for the unlawful purpose of propping up its share price, it has been alleged in the Commercial Court.

The alleged conspiracy involved the department arranging for documents from Anglo to be “significantly amended” to disguise the true extent of the department’s knowledge about what was happening in relation to the loans, the family of bankrupt businessman Sean Quinn has claimed.

Had the regulators done their duty and not encouraged Anglo’s actions, these illegal loans would not have been advanced, Anglo “would have gone to the wall” much more quickly and the Quinns would not have been exposed to claims for €2.34bn, Martin Hayden SC, for the Quinns, said.

He was applying for orders joining the department and Central Bank, in their capacity as regulators, as co-defendants with Anglo in the Quinns’ action denying liability…………

full article at source: http://www.independent.ie/irish-news/courts/quinns-claim-central-bank-conspired-with-anglo-29429511.html

Comment :

By Thomás O Cléirigh

Remember this ?

These scoundrels must face the music one way or another we the people of Ireland must get justice!This activity is called “Insider Trading” and is illegal and all who took part in it must be brought before the courts otherwise we are just living in a Be-NAMA Republic and I do not accept this!

Quinn took part in this obvious illegal act, and was happy to do so when he thought he was going to benefit from it! So no tears from me for him! He just got caught holding the baby! , and is it any wonder when he was dealing with gangsters like the two lads in the tapes above?

While I am on topic where are the other inner circle members (Golden circle)  who were also involved in this little scam???

“Austerity and Evections will push people to open revolt”

By Thomas O Cléirigh

275

The Banks have no legal or moral right to dictate to the Irish people, the Irish government have totally lost all credibility and are no longer the legitimate government of this republic.

We the people are slaves to no one, least of all to a bunch of “Gombeens” and the cheerleaders of corrupt bankers and their pals in Europe .We have now got to make a stand and if this means open revolt so be it! Throughout this crises we have taken everything that was thrown at us as we looked on and saw the gangsters who have brought this financial meltdown upon us be rewarded,and the attempt by the collaborators within the Irish government to keep the same old system in place by passing the blame for this catastrophe and the enormous costs on to the shoulders of the ordinary downtrodden citizen whilst the elite within the political system carry on sucking us dry as they feather their own nests whilst preaching the Austerity gospel according St Angela in Berlin.

Arise noble people of Ireland and take back our country from the corrupt financial vulchers and their henchmen who infest the Dail .

Yesterday at the GPO I bore witness to the testimony of an X cocaine addict, he told the assembled 250 demonstrators he was sentenced to 3 years jail for the theft of 400 Euros worth goods whilst under the influence of the drug from a well known retailer, he rightly asked why was he put into jail when bankers have stolen billions from the people of Ireland and they were rewarded with golden handshakes of   up to 600,000 euro pensions.

This is the society our corrupt political system is maintaining and the same old gombeen politicians are also in bed with the gangsters in the Bank .the central bank governor is also a member of the boys club as are the top union bosses and our national airwaves are well under the control of the vastest interests who by hook or by crook will push us into financial slavery. They have already stolen our national independence and we are now paying interest of Euro 1,000,000,000:00 every month on Private held Bank gambling debts that we are not responsible for. This is not our debt and we should have done exactly the same thing Iceland did and arrest the previous government ministers and all directors of the various Bank directors on charges of fraud and corruption and dereliction of duty.

If the Government are now set on allowing the same toxic bankers to steal the homes of the ordinary citizen then we are on course to an all out revolution and I will be in the front line.

Kenny ,Noonan and Gilmore are  guilty of incompetence at best and treason at worst .They have broken every promise in their election manifesto and I blame them for the countless lives lost in the meantime by desperate citizens forced to take their own lives as a result of these leaches who are continuing to collaborate with faceless bondholders and hot money men in the IFSC . The system is rotten and our political system is infested with self enriching leaches out to get as much as they can for themselves.

All thrust has broken down between the people and the Government, Kenny and his band of collaborators are no longer acting in the best interest of the people of Ireland and they should all go or be pushed off the stage!

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People of Ireland and fellow citizens come stand up and take back our country!

Thomas O Cléirigh

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