• Pivotfarm
    07/25/2014 - 10:30
    Bloomberg carried out a study and it has just been published. It covers conference calls from 2004 to 2014 and it analyzes how American CEOs speak and what words they use.
  • GoldCore
    07/25/2014 - 09:41
    The EU and global drive toward bail-ins continues unabated. Bail-ins are coming to financial institutions and banks in the EU, UK, U.S. and much of the western world - with painful consequences for...

RBS

Tyler Durden's picture

In Stunning Decision, EU Orders Germany To Start Onboarding "Bad Debt" To Sovereign Balance Sheet: RBS, Fannie, Freddie Next?





In what could be the most important news of the day, German Die Zeit reports that, in a stunning move, the EU has ordered Germany to count the holdings of WestLB and Hypo Real Estate (the latter of which failed the stress farce from last month which nobody cares about or remembers anymore) as government debt!  As Bloomberg notes, "That could raise Germany’s debt to 90 percent of gross domestic product, Die Zeit said." Of course the implications of this decision are massive, as it takes out all the guess work of whether insolvent institutions are or are not on the government's balance sheet. The net result, for Germany alone, is that just the addition of Hypo's debt would push German debt/GDP from 79% to 90%, both of which are well above the Maastricht limit of 60% (not like anyone cares that is - everyone is now aware the EU is a failed experiment). The next question: what happens to nationalized RBS and it $168 billion in debt? Total UK debt is $1.2 trillion meaning a comparable action in the UK would rise UK debt by 15%! And then there is a whole slew of other banks in the pipeline in Europe that are full of trillions in toxic debt: will the sovereign hosts be able to onboard this debt? Most importantly, what happens to our administration's adamant claims that Fannie and Freddie's $6+ trillion in debt should not be counted as part of total Federal debt. America already has its hand full with $13.3 trillion in debt. What will happen when it moves to $20 trillion (140% of GDP) overnight. We are confident that unless this decision by the EU's statistics office is overturned, it will likely set off the next leg in the sovereign debt crisis as suddenly European Debt to GDP ratios will increase by about 15-20%.

 
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RBS Prepares To Seek More Money Out Of Goldman





While the punditry debates whether the SEC settlement was or was not a win for Goldman (As Bloomberg's Jonathan Weil summarizes it best: "Here’s the real beauty of the SEC’s settlement agreement yesterday with Goldman Sachs. The next time Goldman Chief Executive Officer Lloyd Blankfein goes on television and is asked by some reporter if Goldman committed securities fraud, as the SEC alleged, he won’t be allowed to say no.") those wronged by Goldman are only just starting to flex their legal muscles. Reuters reports that one of the "big" winners from the settlement, UK's biggest nationalized bank RBS, is about to beg for more handouts (allegedly to cover its ongoing losses on sovereign debt holdings): "Royal Bank of Scotland may pursue Goldman Sachs for hundreds of millions of dollars to add to $100 million it got as part of a settlement over the marketing of a subprime mortgage product. RBS said on Friday it would "carefully consider all of its options" after Goldman agreed on Thursday to pay it $100 million as part of a $550 million settlement of civil fraud charges over how it marketed the subprime mortgage product. RBS's options include taking Goldman to court as
the U.S.
Securities and Exchange Commission said the penalty left the
door open for future civil suits.
" At this point the response by RBS, which is 83% state owned will likely depend on US treatment of BP, considering that "Former UK Prime Minister
Gordon Brown said in April that Goldman would have to pay back
"hundreds of millions of dollars" if the charges against it were
proven.
" The only question left is to define "does not admit or deny guilt."

 
Tyler Durden's picture

Bob Janjuah Leaves RBS





One of the world's last few remaining permaskeptics, Bob Janjuah, has severed ties with the UK's most bailed out and nationalized bank, RBS, reports Bloomberg. And just as the departure of David Rosenberg from Merrill in early 2009 marked the start of a period of complete market schizophrenia, we hope that the purging of negativists from the Royal Bank of Scotland is not indicative of just such another period, at least on the other side of the Atlantic. However, unlike last March when the several trillion in global stimulus funds was only just entering the economy, this time around not even the ritualistic sacrifice of bears will do much to stop the slide. And just to confirm that this is likely a localized issue to RBS, the Chief Markets Econoist Kevin Gaynor has also left the firm.

 
Tyler Durden's picture

Developing Story: RBS In Stamford Has Gone Dark





Unconfirmed: RBS back up now. No idea what caused the black out, but likely a liquidity run.

 
Tyler Durden's picture

Hey RBS: This Is Not Another Greek Bank Run, We Promise





Sorry, we just can't resist. It's just too easy when dealing with the best and most erudite, if only just massively nationalized, bank in the world. Ever. Yet what is much more relevant, this story explains just why the US is taking the capital flight control measures we discussed recently. Too bad Greece did not have the foresight to institute comparable controls when it had the chance.

 
Tyler Durden's picture

Awaiting RBS' Retort On The Most Recent Greek Bank Run Confirmation





A month ago Zero Hedge was ridiculed by RBS' Head of European Rates Harvinder Singh for daring to suggest that Greece was experiencing a bank run. Surely, RBS, with its stash of Greek bonds that it desperately needed to offload, did not need any additional bad news spooking the more timid elements. After all someone would need to buy the endless toxic assets that RBS had managed to accumulate over the years before it needed to be bailed out by its government. Alas, as so often happens when banks gets involved (we would say big, but RBS is a third tier toxic asset repository at best) and refute Zero Hedge, things don't quite work out their way, and yesterday none other than Greek newspaper Eletherotypiha confirmed that "there had been a rush to
withdraw funds from banks." Oops.

 
Tyler Durden's picture

Some Afternoon Amusement Courtesy Of RBS: There Is No Spoon - Or Bank Run





We were pleasantly surprised earlier today when we discovered that the "head of European rates" at RBS, or as it is better known in the US as CRT LLC (see here, here and here), Harvinder Sian, not only sends out mollifying notes to clients with extended references to "excitable" blogs such as Zero Hedge, but that apparently cost-cutting measures have forced RBS to cancel their over-budget Dow Jones wire service.

 
Tyler Durden's picture

RBS' Sovereign Crisis Flow Pyramid





In a report "Predicting Sovereign Debt Crises: 2010 Update" RBS' Timothy Ash is the latest one to chime in on the sovereign risk theme, a topic that has been prevalent ever since Bernanke did the great private-to-public risk bait and switch, which in turn was followed to a great extent by all the countries in the world. Soon, in addition to a risk to the bottom in carry trades, and inflation expectations, we will see a risk acceleration, once countries realize the fringe benefits arising from being the first defaulting sovereign in a global moral hazard climate.

 
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Schaeffler Financing Complete, Next On Deck: Continental Merger And Lots Of Pain For RBS





New developments in that "other" German automotive soap opera. Reuters is reporting that the most insanely leveraged behemoth of an auto-supplier, Continental-Schaeffler has finally managed to close on the terms of a critical $17 billion deal, a critical step which will make the biggest M&A blunder in the last decade (tiny ball-bearing maker Schaeffler's purchase of much, much larger and much more indebted auto supplier conglomerate Continental).

 
Tyler Durden's picture

The Looting Of RBS





Soon coming to a certain Greenwich marina corporate campus near you.

[youtube=http://www.youtube.com/watch?v=p0b_9bIpES0&hl=en&fs=1]

[youtube=http://www.youtube.com/watch?v=tX5opZ68BM8&rel=0&color1=0x6699&color2=0x...]

 
Tyler Durden's picture

G20 Protesters Break Into RBS Building In London





As CNBC makes fun of the G20 "fair with jesters and jugglers" in London, things are, in reality, getting serious. Just out of Foxnews:

 
Tyler Durden's picture

RBS To Exit Leveraged Finance Lending





Developing story, but with such blockbusters as Lyondell and Continental AG one had to expect they would pull the plug sooner or later.

 
Tyler Durden's picture

RBS Bonuses Decimated To Total Of $250 Million For Whole Firm





Developing Story:

Wow, this is just scary. If this happened in the U.S. you would see riots on Wall Street.

Royal Bank of Scotland to see bonuses drop from 2.5 billion pounds to 175 million total.
There will be no cash payments for future RBS bonuses, and will instead take form of bond payments to be made in 3 annual payments. Lastly, there will be a clawback.

 
Tyler Durden's picture

RBS Stock Down Over 60% in Europe Trading





Probably not that surprising after posting the "biggest ever loss reported by a U.K. company" of $41 billion. Biggest shareholder, the United Kingdom Government with 22.8 billion shares, can not be happy with an $8 billion + loss in 6 hours of trading. Paulson, with 142 million shares short, is very happy.

 
Tyler Durden's picture

RBS Stock Down Over 60% in Europe Trading





Probably not that surprising after posting the "biggest ever loss reported by a U.K. company" of $41 billion. Biggest shareholder, the United Kingdom Government with 22.8 billion shares, can not be happy with an $8 billion + loss in 6 hours of trading. Paulson, with 142 million shares short, is very happy.

 
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