Dinar Daily
Welcome to Dinar Daily Discussions.

Logging in with your USERNAME allows you to participate in discussions, see what has recently been posted, and other options. Guests can post but they do have limited abilities.

We are NOT a guru forum. We are a dinarian forum. The opinions expressed on the forum do not reflect the of opinion of Dinar Daily specifically, but rather reflect the views of the individual posters only.


We are in compliance with, "Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use."

Join Us for Dinar Discussions and More -- We Keep it REAL
HomeSearchMemberlistFAQLog inRegister
Help Us Drain the SWAMP in DINARLAND

REPORT TONY RENFROW for violating his Court Order to stay away from Dinar -

Judge's email: ksd_murguia_chambers@ksd.uscourts.gov
PHONE - 913-735-2340

DA's email: Scott.Rask@usdoj.gov
PHONE - 913-551-6730

Key Words
Adam Montana, AdminBill, Benjamin Fulford, Currency Exchange, David Schmidt, Dinar, Dinar Guru, Dinar Recaps, Dinar Rv, Dinar Scam, Dr Clarke, Frank26, Gary Larrabee, Gurus, Guru Hunters, JerzyBabkowski, Kaperoni, Kenny, Monetary Reform, Mnt Goat, My Ladies, Okie, Poppy, RamblerNash, Ray Renfrow, Redenomination, Revaluation, Ssmith, TNTBS, Tnt Tony, WING IT, We Are The People, Willis Clark, WSOMN, Yosef, Zap
Share | 

 European banks face major reckoning

Go down 
Elite Member
Elite Member

Posts : 1812
Join date : 2011-06-24

PostSubject: European banks face major reckoning   Thu Sep 15, 2011 8:20 am


Jeffrey Sachs, an economics professor at Columbia University, talks about the European debt crisis, the U.S. economy and imbalances in global living standards. (Sept. 14)


European banks face major reckoning

.If a major bank were to fail, that could send shock waves across the Atlantic, buffeting U.S. financial companies with close ties to their European counterparts or major investments in Europe.

The downgrades by Moody’s added fuel to a debate among European and U.S. policymakers over whether the continent’s banks are mostly healthy or instead need billions of dollars in additional capital to withstand likely losses on loans made to countries like Greece, Portugal and Italy.

Greek bonds are already being resold at half their face value because of the high risk of default. If these losses mount, they could eat away at the capital buffer of banks across Europe, raising the prospect of an outright bank failure — which some financial analysts fear could cause the global financial system to seize up as it did after the Wall Street investment bank Lehman Brothers collapsed in 2008.

The question of whether European banks are dangerously short of capital will be a point of contention as European finance ministers gather in Poland on Friday and the International Monetary Fund holds its annual meetings next week. IMF Managing Director Christine Lagarde has argued that European banks need a quick and large capital infusion, and U.S. Treasury Secretary Timothy F. Geithner in a CNBC interview on Wednesday said European leaders are “behind the curve” in addressing the region’s banking and other problems.

In cutting the rating of Credit Agricole, Moody’s cited the French firm’s “sizeable exposure to the Greek economy.” The rating company downgraded Societe Generale because of broader concerns about the outlook for French banks. This action may make it more difficult or more expensive for the banks to raise the money they need to operate — bad news in an environment where financial firms already mistrust each other and are charging more to lend to each other.

French bank officials have said they regard their capital buffers as adequate, and French central bank governor Christian Noyer on Wednesday said Moody’s action was “relatively good news.” With some investors predicting that Moody’s would slash the banks’ rating even more, Noyer told French radio, “It’s a very limited downgrade,” according to wire service reports.

Some banks have been turning to the European Central Bank for help. On Wednesday, the ECB reported that two European banks had tapped it for dollar-based loans, a sign the firms were struggling to find the money they need on the open market. The banks were not named.


Back to top Go down
View user profile
European banks face major reckoning
Back to top 
Page 1 of 1

Permissions in this forum:You cannot reply to topics in this forum
Jump to: