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Barclays vinnare av ‘innovation inom räntemanipulation’

Mer från Telegraph

Kategorier:Banker, bedrägeri, Humor

OCD derivat exploderar till ofantliga $707,568,901,000,000

Bank of International Settlements släppte nyligen en viktigt rapport som, i vanlig ordning, massmedia missade att uppmärksamma.  Som tur är finns det bloggar som ZeroHedge som sällan missar denna typ av information som ‘De Styrande’ försöker att gömma på ett eller annat sätt.

Det intressanta med rapporten är att den bl a innehåller den största enskilda siffran i hela den finansiella världen ($707,568,901,000,000), som motsvarar summan (notional) av alla utestående OCD derivat (läs oreglerade) i världen som rapporteras till BIS.

Det kanske mest anmärkningsvärda i rapporten är att summan av utestående OCD derivat fullkomligen exploderat med 107 biljoner dollar bara under det första halvåret 2011, den största ökningen i historien.

Som ZeroHedge påpekar så är den troliga anledningen till den kraftiga ökningen att banker tvingat att sälja ytterligare derivat i ett desperat försök att få in premier för att täcka förluster från existerande derivatinnehav. Inte undra på att bankerna har lyckats trolla fram ‘vinster’ den senaste tiden.

Här är ett par utdrag:

…an increase of that magnitude is simply impossible to perceive without alarm bells going off everywhere, especially when one considers the pervasive deleveraging occurring at every sector but the government. All else equal, this move may well explain the massive surge in bank profitability in the first half of the year. It also means that with banks suffering massive losses, and rumors of bank runs and collateral calls, not to mention the aftermath of the MF Global insolvency, the world financial syndicate will have no choice but to increase gross notional even more, even as the market value continues to get ever lower, thus sparking the risk of the mother of all margin calls: a veritable credit fission reaction.

But no matter what: the important thing to remember is that ”they are all hedged” – or so they say, a claim we made a completely mockery of a few weeks back. So ex-sarcasm, the now parabolic increase in derivatives means that when the bilateral netting chain is once again broken, and it will be (because AIG was not a one off event), there will simply be trillions more in derivatives that no longer generate a booked cash flow stream for the remaining counterparty, until at the very end, the whole inverted credit0money pyramid collapses in on itself.

And, once again for those confused, the fact that notional had to increase so epically as market value tumbled most likely means that the global derivative pyramid scheme (no pun intended) is almost over.

 

Kategorier:Banker, derivat Taggar:

Fitch varnar för sänkning av kreditbetyg för sju storbanker

Kreditvärderingsinsituten fortsätter att försöka gottgöra för att i åratal mer eller mindre låtit sig mutas till att ge på tok för höga kreditbetyg.

Denna gången är det Fitch som varnar för kommande sänkningar när man sätter sju storbanker under ‘review’. Det var knappast vad de insolventa bankerna behövde i detta läget.

Här är ett utdrag från pressreleasen (via CS):

In conjunction with a broad assessment of the ratings for the largest banking institutions in the world, Fitch Ratings is conducting a review of the global trading and universal banks in its rating portfolio. As part of that review, Fitch has placed the Viability Ratings (VRs) of seven and the long-term Issuer Default Ratings (IDRs) of six global trading and universal banks on Rating Watch Negative. At the same time, Fitch has placed the short-term IDRs of four of the banks on Rating Watch Negative.

The banks impacted by these rating actions are as follows:

–Barclays Bank plc
–BNP Paribas
–Credit Suisse AG
–Deutsche Bank AG
–The Goldman Sachs Group, Inc.
–Morgan Stanley
–Societe Generale

Vi vet hur detta kommer att sluta. Vore lika bra att göra processen kort och sänka betyget för både insolventa banker och konkursmässiga länder till skräpstatus med en gång.

Kategorier:Banker Taggar:

Myndigheter i USA stämmer banker för försäljning av paketerat finansiellt skräp till Fannie och Freddie

New York Times avslöjar att amerikanska myndigheter de kommande dagarna kommer att lämna in en stämningsansökan mot ett dussin större amerikanska banker för deras försäljning av paketerat finansiellt skräp till Fannie Mae and Freddie Mac där de kommer att kräva kompensation för de förluster som dessa transaktioner orsakat bostadsjättarna.

Tidpunkten för denna stämning kunde knappt komma mer olägligt för bankerna, med tanke på den senaste tidens nervositet på marknaden över deras ohälsa (insolvens). För Bank of Americas del kan läget bli än mer akut trots tillskottet från farbror Warren (vilket för övrigt var ett stort skämt).

Här är ett utdrag från NYT:

The federal agency that oversees the mortgage giants Fannie Mae and Freddie Mac is set to file suits against more than a dozen big banks, accusing them of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, and seeking billions of dollars in compensation.        

The Federal Housing Finance Agency suits, which are expected to be filed in the coming days in federal court, are aimed at Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank, among others, according to three individuals briefed on the matter.

The suits are being filed now because regulators are concerned that it will be much harder to make claims after a three-year statute of limitations expires on Wednesday, the third anniversary of the federal takeover of Fannie Mae and Freddie Mac.

The suits will argue the banks, which assembled the mortgages and marketed them as securities to investors, failed to perform the due diligence required under securities law and missed evidence that borrowers’ incomes were inflated or falsified. When many borrowers were unable to pay their mortgages, the securities backed by the mortgages quickly lost value.

Fannie and Freddie lost more than $30 billion, in part as a result of the deals, losses that were borne mostly by taxpayers.

Private holders of mortgage securities are already trying to force the big banks to buy back tens of billions in soured mortgage-backed bonds, but this federal effort is a new chapter in a huge legal fight that has alarmed investors in bank shares. In this case, rather than demanding that the banks buy back the original loans, the finance agency is seeking reimbursement for losses on the securities held by Fannie and Freddie.

Bankerna vill självklart ännu inte kommentera NYTs uppgifter, men det är helt klart att man kommer att hitta bortförklaringar. Eller vad sägs om följande:

..privately, financial service industry executives argue that the losses on the mortgage-backed securities were caused by a broader downturn in the economy and the housing market, not by how the mortgages were originated or packaged into securities. In addition, they contend that investors like A.I.G. as well as Fannie and Freddie were sophisticated and knew the securities were not without risk.

Om inte annat så kommer man sannolikt att försöka med skrämseltaktik av olika slag:

Investors fear that if banks are forced to pay out billions of dollars for mortgages that later defaulted, it could sap earnings for years and contribute to further losses across the financial services industry, which has only recently regained its footing.

Bank officials also counter that further legal attacks on them will only delay the recovery in the housing market, which remains moribund, hurting the broader economy. Other experts warned that a series of adverse settlements costing the banks billions raises other risks, even if suits have legal merit.

“While I believe that F.H.F.A. is acting responsibly in its role as conservator, I am afraid that we risk pushing these guys off of a cliff and we’re going to have to bail out the banks again,” said Tim Rood, who worked at Fannie Mae until 2006 and is now a partner at the Collingwood Group, which advises banks and servicers on housing-related issues.

Här är en kommentar från Zerohedge:

…the gloves are coming off, and while we want to believe that this is the final nail in BAC’s coffin, we do have a nagging feeling that the US will not purposefully do everything in its power to destroy its banking sector.

Grekiska bankaktier rusar på besked om sammanslagningar

Som en sista desperat utväg för att undvika konkurs har grekiska storbanker nu beslutat sig för att slå ihop sina insolventa påsar. På så sätt undviker (fördröjer) man dels en bank run och dels blir de tillräckligt stora för att EU inte skall tillåta att de går under, sk TBTF (too big to fail). 

När Alpha Bank och Eurobank (den andra och tredje största grekiska banken) idag meddelade att de går samman för att bilda den största banken i sydöstra Europa (med en klassisk ‘räddare’ i form av Qatar Investment Authority) så blev investerare alldeles till sig och skickade upp de båda bankerna med 30% och bankindex med 20%. Man bara skakar på huvudet åt allt detta vansinne.

Här är en kommentar från ZeroHedge:

The banks estimate that the merger will create about 650 million euros of synergy saving per year. Naturally nobody cares about this, as long as the first stake in the Greek bid for TBTFness proceeds as planned. That this step only delays the inevitable is irrelevant: for now the buying spree must resume. 

We fully expect the pro forma entity to eventually subsume all other Greek banks before finally it reverse mergers with the hollow ECB shell.

We congratulate this latest improvised moment in can kicking: in the meantime, we hope to shortly update readers on the €10 or so billion in deposits pulled out of Greek banks in the most recent month as the NBG data is updated.

Fantasi-prissättning av tillgångar kvarstår sedan bankerna satt press på FASB

Många har imponerats av hur snabbt de internationella storbankerna återhämtat sig efter kraschen 2008. De som satt sig in i detaljerna vet dock mycket väl att det var till största delen tack vare ändrade redovisningsregler, där bankerna tilläts att i princip värdera sina tillgångar helt godtyckligt istället för att låta marknaden sköta värderingen. Detta innebar att man kunde sälja tillgångar till överpris till bl a Federal Reserve och låta skattebetalarna ta hela smällen.

De ändrade redovisningsreglerna uppgavs dock vara av tillfällig natur (man skyllde på att det kaotiska och ansträngda läget innebar att tillgångar inte prissattes korrekt av marknaden) och att så fort läget stabiliserats så skulle de gamla reglerna, där marknaden fick sätta priset, mer eller mindre återinföras.

Häromdagen kom dock det allt annat än oväntade beskedet att FASB, den amerikanska motsvarigheten till den internationella standardsättaren för redovisning IASB, viker sig efter påtryckningar från bankvärlden och kommer inte att återinföra marknadsprissättning av tillgångar.

Se detta som en bevis för att den finansiella situationen, trots att man lyckats sälja av en hel del skräp till skattebetalarna och trots det påstådda förbättrade läget, så kan man ÄNDÅ inte återinföra marknadsprissättning då ponzi-spelet troligtvis skulle kollapsa.

Här är ett utdrag från Bloomberg:

The Financial Accounting Standards Board backed off from its plan to make banks use market values to calculate how much the loans on their books are worth.

The panel, which sets U.S. accounting standards, today approved a change to its proposal that will allow banks to report some financial instruments on their balance sheets at amortized cost, as they currently do, rather than at fair value. The biggest U.S. banks and the American Bankers Association had opposed the original plan.

FASB’s planned rule would have forced lenders to mark deposits and loans to market values as they already do for traded securities. Not all changes in the values of assets and liabilities would affect net income, since some fair-value adjustments can be recorded in what’s called “other comprehensive income,” a balance-sheet item added or deducted from equity.

Här är en kommentar från Jim Sinclair:

I believe you were informed a long time ago about each of these manoeuvres used to make billions in OTC derivatives.

Notice how all the officers and board of director members have been hiding now for years? Their silence is deafening.

Och här är en kommentar från ZeroHedge:

By now everyone is aware that following tremendous pressure by the banker lobby, which knows too well the Ponzi jig will be immediately up if Quantitative Easing’s TBTF Madoffs are forced to disclose the true value of their worthless assets (yes, true value comes from asset cash flow generation, not from diluting money), the FASB decided to stop its push for a return to MTM.

From the WSJ: ”Accounting rule makers, bowing to an intense lobbying campaign, took a key step Tuesday to reverse a controversial proposal that would have required banks to use market prices rather than cost in order to value the loans they hold on their balance sheets.”

Transparency? What moron would propose that in an economy that is so obviously healthy and surging. After all, the only way to validate a surging stock market, er, economic recovery, is through bullshit numbers pulled out of the ass. That way they can pretend to tell us the truth, we can pretend to believe them, and everyone will frontrun the Fed who pretends not to be buying stocks. And it would have been great if it ended there. Alas no. Following the announcement, none other than Bill Isaac, current Chairman of LECG, but far more importantly, former Chairman of the FDIC under Ronald Reagan decided to send out a gloating email to his entire address book explaining what a moral victory it is to kill the MTM monster that is the sole reason for the near collapse of capitalism in 2008, and how truly wonderful it is for everyone to live in perpetual lack of knowledge of what the true value of any company’s assets really is. Unfortunately, this just goes to show what the existing, extremely bribed, leaders of the nation’s most vital organizations really think.

Kategorier:Banker Taggar:

New York Times: Hemlighetsfull bankelit styr handeln med derivat

New York Times har publicerat en artikel med titeln ‘A Secretive Banking Elite Rules Trading in Derivatives‘ som återigen bevisar hur riggat vårt finansiella system är, något som vi tagit upp åtskilliga gånger här tidigare. För regelbundna läsare bör därför detta inte komma som någon direkt överraskning. Läsning rekommenderas dock.

Här är ett utdrag från artikeln:

On the third Wednesday of every month, the nine members of an elite Wall Street society gather in Midtown Manhattan.

The men share a common goal: to protect the interests of big banks in the vast market for derivatives, one of the most profitable — and controversial — fields in finance. They also share a common secret: The details of their meetings, even their identities, have been strictly confidential.

Drawn from giants like JPMorgan Chase, Goldman Sachs and Morgan Stanley, the bankers form a powerful committee that helps oversee trading in derivatives, instruments which, like insurance, are used to hedge risk.

In theory, this group exists to safeguard the integrity of the multitrillion-dollar market. In practice, it also defends the dominance of the big banks.

 

För den som inte har tid att läsa hela artikeln så har ZeroHedge gjort en summering av de viktigaste punkterna (se nedan):

* The most profitable product for banks currently are derivatives (and CDS in particular)
* As a result, the derivatives trading cabal wants to contain its members to as few as possible, and to preserve the status quo indefinitely
* Margins on CDS can be anything as there is no central clearing or pricing mechanism; buyers and sellers rely on the broker to present an honest market
* The trading desk spread profit on a CDS contract is 0.1% of notional ($25,000 of $25,000,000)
* Spreads can be as wide as the banking cartel (Goldman, as most other banks just price at Goldman levels) deems them to be
* Banks do not want to trade CDS on exchanges as that would kill margins
* Citadel tried to make CDS trading into a HFT operation. It failed (for now)
* Markit is a dominant industry-controlled player, and prevents transparency (and thus keeps margins high) in the market by not allowing broad dissemination of CDS pricing
* Regulation is powerless to break the cabal’s control

 

Passar på att inkludera en länk till ett favoritinlägg – Hur funkar derivatmarknaden?

Kategorier:Banker, derivat Taggar:, ,