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poker
15-07-2011, 18:59
Spain, Catalunya Caixa, Pastor, Unnim, Caja3 and CAM all failed.

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dokgolf
15-07-2011, 20:04
Yes and according to some financial analysts, the test wasn't all that strict. The bloke I saw said that they met normal conditions and didn't factor in an escalation in the financial crisis in the Eurozone i.e. a Greek, Portugal, Ireland or Italy debt default. Apparently, the banks "only" fell 2.5 billion short in capital?? Strange.....

tonypub
15-07-2011, 20:07
its not a problem as the governments will prop them up,as always

dokgolf
15-07-2011, 20:12
its not a problem as the governments will prop them up,as always

The Icelandic population voted twice in referenda

not to allow their government to prop up the banks. ( I know its outside the Eurozone, but a lesson to be learned methinks)

tonypub
15-07-2011, 20:14
The Icelandic population voted twice in referenda

not to allow their government to prop up the banks. ( I know its outside the Eurozone, but a lesson to be learned methinks)democracy at brussels,haha.its a dictatorship gettin

Angusjim
16-07-2011, 08:45
its not a problem as the governments will prop them up,as always

Whats the answer if they don't ??

poker
16-07-2011, 09:01
Whats the answer if they don't ??

Compra oro and put it under youre bed . :-)

Theres a lot of money being put in gold here in Spain just look they have a goldshop in every streat now .

Seems some ritch peaple know the situation with spanish banks pritty good , wel they earned their money with them to start but now change it into gold.

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tonypub
16-07-2011, 09:15
Whats the answer if they don't ??nobody knows:crazy::pray::pray:

Jackie Buyer
16-07-2011, 09:27
Whats the answer if they don't ??

Salaries are paid into the bank, so nobody would receive their salary, you would default on your mortgage & all other commitment & have no money to buy food

Bobby
16-07-2011, 10:00
I hope Santander stays afloat as it is proving to be a good investment. This is notwithstanding the many complaints it receives.

dokgolf
16-07-2011, 11:19
Whats the answer if they don't ??

The banks may fail if the situation gets worse. If a bank fails it will probably lead to a money run on other ones and we will have another "Lehmann's" credit crunch. ( This, incidently, would be the same scenario that the Euro governments are afraid of if Greece fails)

This is what the Icelanders allowed to happen to their banks. They needed 6 billion dollars in emergency loans ( bailout) but thats it. No massive funds required to prop up their banks ( Ireland needed 48 billion for this!) The Icelandic standard of living fell back to 1998 standards but have already recovered to 2006 standards.

tonypub
16-07-2011, 11:27
The banks may fail if the situation gets worse. If a bank fails it will probably lead to a money run on other ones and we will have another "Lehmann's" credit crunch. ( This, incidently, would be the same scenario that the Euro governments are afraid of if Greece fails)

This is what the Icelanders allowed to happen to their banks. They needed 6 billion dollars in emergency loans ( bailout) but thats it. No massive funds required to prop up their banks ( Ireland needed 48 billion for this!) The Icelandic standard of living fell back to 1998 standards but have already recovered to 2006 standards.iceland is only the size of coventry,theres only 320,000 people live there

dokgolf
16-07-2011, 11:46
Agreed but you're missing my point. If the Ecb had not insisted on banks be saved and I'm quoting directly here "at all costs", then the bailouts would have been significantly reduced if not eliminated e.g. Irelands bailout was 67 billion of which 48 went directly to the banks. If they hadn't been forced to recapitalise the banks from public funds, it would leave a shortfall of 19 billion. This could easily have been raised on the markets if a Europe wide decision hade been made ( which hopefully will happen next Thursday). Greece would certainly not have needed a 2nd bailout ( certainly not so soon ) as virtually all the the first bailout went to repaying banks/ propping up banks and hardly any went into the public purse. The ECB's holy grail is not to let any of the senior bondholders ( i.e. german & french banks ) lose money in Europe's other banks in case of a credit crunch. I don't think its a coincidence that the Federal Reserve allowed Lehmann's go to the wall. The initial financial shock was severe but when the Federal Reserve bailed out the other lenders in the US ( Fanny Mae etc), they were able to impose haircuts of up to 90% on the bondholders thereby lessening the impact on the ordinary Joe Soap.