Stress Test

Tyler Durden's picture

A Very Unexpected Statement From A Central Banker: "We Are Merely Reacting To A Situation We Did Not Create"





"Sometimes the criticism directed at our policies implicitly attributes responsibility for the low interest-rate environment to central bank policies. But the truth is precisely the opposite: central banks are simply reacting to and trying to correct a situation that they did not create."

- ECB vice president Vittor Constancio

 
Reggie Middleton's picture

Reggie Middleton's Prognosticated Market Crash and False Positives in Interest Rate Raise Promises





Not only is the equity market going to crash (after a dead cat bounce) the property market is about to pass out pain like you won't believe.

 
Marc To Market's picture

Observations about the Dollar and the Week Ahead





A look at next week's data in the somewhat larger context, and a look at interest rate differentials

 
Tyler Durden's picture

Third Time's The Charm? Greece Agrees To Bailout Amid Rampant Skepticism





After what were described as "marathon" negotiations, Greece and its creditors have agreed to the terms of the country’s third bailout program. Although some remain optimistic, the general consensus seems to be that, as Finnish Foreign Minister Timo Soini said over the weekend, "we should just admit that this isn't going to work."

 
Tyler Durden's picture

Standard Chartered Profit Collapses, Dividend Halved Amid Commodities Carnage





Standard Chartered’s new CEO Bill Winters thinks the bank is positioned well in "markets which will offer outstanding opportunities for decades to come", and while that may be true, the opportunities in those markets didn’t prove to be all that outstanding in the first half of the year, as the bank’s EM and commodities exposure contributed to a 44% decline in H1 profits and prompted a 50% dividend cut. 

 
Tyler Durden's picture

Greek Bank Stocks Crash Again Amid Fresh Signs Of Economic Disintegration





After trading limit-down on Monday when Greek stocks opened for trading for the first time since PM Alexis Tsipras called a referendum, shares of Greek banks once again flirted with the daily 30% loss limit on Tuesday as there were simply no bids for a set of institutions that everyone knows is insolvent. Meanwhile, Kathimerini reports that "the state’s losses from indirect taxes alone in the first couple of weeks of capital controls and the shuttering of banks [amounted to] more than half a billion euros."

 
Tyler Durden's picture

Greek Banks Crash Limit Down For Second Day; China And Commodities Rebound; US Futures Slide





After a lukewarm start by the Chinese "market", which had dropped for the past 6 out of 7 days despite ever escalating measures by Beijing to manipulate stocks higher, finally the Shanghai Composite reacted favorably to Chinese micromanagement of stock prices and closed 3.7% higher as Chinese regulators stepped up their latest measures by adjusting rules on short-selling in order to reduce trading frequency and price volatility, resulting in several large brokerages suspending short sell operations. At this pace only buy orders will soon be legal which just may send the farce of what was once a "market" limit up.

 
Tyler Durden's picture

Former FDIC Head Sheila Bair Resigns From Parent Of World's Largest Subprime Auto Lender





Just days after Blythe Masters took up her role as Chairman of Santander Consumer - the world's largest subprime auto lenders; former FDIC head Sheila Bair has resigned her position on the board of Banco Santander citing excess "travel" as a reason. One cannot help but wonder if the clash of the titans was too much, if the embrassment of a failed stress test was unbearable, or if Ms. Bair sees the rapidly approach light at the end of the tunnel of subprime lending for what it is... a bigger train that 2008's.

 
Tyler Durden's picture

Frontrunning: July 23





  • Greek PM keeps lid on party rebellion to pass bailout vote (Reuters)
  • Greek Prime Minister Alexis Tsipras Remains Popular Despite Tough Bailout Deal (WSJ)
  • Beijing's stock rescue has $800 billion bark, small market bite (Reuters)
  • Capital exodus from China reaches $800bn as crisis deepens (Telegraph)
  • Why Investors Shy Away From China’s $6.4 Trillion Bond Market (WSJ)
  • Oil Rigs Left Idling Turn Caribbean Into Expensive Parking Lot (BBG)
  • Bank of America replaces CFO in management shake-up (Reuters)
  • The Financial Buzz? Pearson to sell Financial Times (Reuters)
 
Tyler Durden's picture

Attention Greek Bankers: Bridge In Brooklyn For Sale On The Cheap





If you were a shareholder of a Greek bank, you wouldn’t lose sleep over your relationship with your regulator. In that context, the statement of the 12 July Euro Summit may have come as a shock—particularly the bit about the new program for Greece having to include "the establishment of a buffer of EUR 10 to 25bn for the banking sector in order to address potential bank recapitalisation needs and resolution costs." You could be forgiven for thinking—where did that come from?

 
Tyler Durden's picture

Unholy Alliance: Blythe Masters Named Chairman Of Subprime Auto Lender





Today, an unholy alliance was born when Blythe Masters, the mother of the credit default swap and former member of the fabled "Morgan Mafia" was named chairman of Santander Consumer, the largest subprime auto lender in the US.

 
Tyler Durden's picture

Why Did Schauble Almost Use The "Nuclear Option" - Tim Geithner Explains





"The idea was that with Greece out, Germany would be more likely to provide the financial support the eurozone needed because the German people would no longer perceive aid to Europe as a bailout for the Greeks. At the same time, a Grexit would be traumatic enough that it would help scare the rest of Europe into giving up more sovereignty to a stronger banking and fiscal union."

 
Tyler Durden's picture

Greek Banks Not Out Of The Woods, May Impose Tougher Capital Controls, Barclays Says





Even with a deal in place and a new program for Greece on the horizon, the country's banks are by no means in the clear as deposit outflows, limited breathing room under ELA, and deteriorating asset quality present formidable stumbling blocks going forward.

 
Tyler Durden's picture

The Latest Out Of Europe: "Pretty Steady Level Of Shittiness"





Me: How are the talks going?
EU source: "Shitty."
Me: "Getting more shitty or less?"
Source: "Pretty steady level of shittiness

 
Tyler Durden's picture

Don't Tell Merkel: Greek Banks Need An Additional €10-14 Billion Bailout





"There is an estimated need of about 10 to 14 billion euros in new capital. Given the magnitude of the shock we have been through, regulators will take stock of the situation and the impact on non-performing loans."

 
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