In a long-awaited decision, a US Federal Judge today ruled that investors may pursue antitrust and manipulation claims against ScotiaBank and HSBC Holdings, clearing the way for silver manipulation price-fixing litigation and potentially opening up the spigot for countless similar such lawsuits.
The global economic recovery would still leave about a quarter of banks in developed countries too weak to support further growth and susceptible to future shocks. This means that banks controlling about $12 trillion of assets would remain vulnerable during a rosy economic environment marked by faster economic activity, rising interest rates and declining defaults
While Germany's largest lender would ultimately be rescued by the German government if needed, other banks in the region wouldn’t be able to count on such support, Gundlach said. “Deutsche Bank will be supported by Germany if push comes to shove, but what about Credit Suisse, which has shown a similar decline in stock price? Who’s there to bail them out?”
"Whatever happens.. every European bank is not going to vanish in a puff of green smoke. Decimation sounds horrendous, but remember it means one in ten. Europe might benefit from it. One or two banks, (actually 3 Italians and maybe a German or two), might be led to the slaughter room, but generally the rest of Europe’s banks will probably survive. Picking the bottom is the trick. It’s the big contrarian trade."
Sterling dropped to its weakest since 1985, hit by a growing sense that the UK may be heading for a 'hard' Brexit in which it cuts links to the EU's single market in favor of total control over immigration. The dollar strengthened, the Nikkei225 rose as the Yen fell, stocks in Europe rallied while US equity futures were fractionally in the green.
Pent-up exuberance from the long weekend has lifted Deutsche Bank stock in early European trading, but it has also lifted the cost of credit protection as professionals in the CDS market appears far less confident in the dead-cat-bounce that equity speculators are already beginning to fade.
Even the ECB analysts do not hide the truth... “the TARGET balances are a manifestation of underlying tensions in the Economic and Monetary Union..."The whole system still can exist only because of the massive intervention of the ECB.