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Who Really Calls The Shots In Europe

Tyler Durden's picture


Hint: It's not the "sovereigns." The chart below (an update of a chart we showed some years ago: not unexpectedly, Dexia no longer made the cut) shows the ratio of the biggest European and American bank assets to domicile nation GDP. The red line is the 50% assets/GDP breakeven. It is safe to say that if a bank's "assets" whether marked to myth, unicorns, or markets (sadly nobody has done the latter in the past 3 years) represents at least half of a domicile nation's GDP, the bank is obviously Too Humongous To Fail, and when it comes to leverage it is its unelected executive committee which calls the real shots for not only the host country, but any monetary union it may be part of. This is how 20 or so corner offices hijacked Europe. The ironic observation is that for all the complaints about the TBTF phenomenon in the US (banks in red), it is Europe where the TBTF spectacle will truly unfurl once the central banks finally lose control, and the giant unwind begins.


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Thu, 10/04/2012 - 18:46 | 2857648 Abraxas
Abraxas's picture

"Who really Calls The Shots In Europe"

I know this one! The shadow governments, aka shadow bankers, aka shadow institutions... in one word, The Shadows call the shots.

Thu, 10/04/2012 - 18:58 | 2857690 max2205
max2205's picture

A+ 4 U

Thu, 10/04/2012 - 19:07 | 2857719 lasvegaspersona
lasvegaspersona's picture


I prefer Au 4 me

Thu, 10/04/2012 - 19:15 | 2857762 Thomas
Thomas's picture

More precise question: Which banks call the shots? No sense in making the question too open ended.

Thu, 10/04/2012 - 19:21 | 2857773 knukles
knukles's picture

You didn't grow too big on your own

Thu, 10/04/2012 - 19:56 | 2857861 economics9698
economics9698's picture

Do politicians ever get tired of sucking circumcised cock?

Thu, 10/04/2012 - 21:30 | 2858044 IBelieveInMagic
IBelieveInMagic's picture

Bollocks Tyler. Every country is represented by a TBTF to secure said country's share of excess loot in proportion to what the US TBTF and their counterparts in other EU countries. All 'hard currency' swappable currency countries are on this arrangement.

Fri, 10/05/2012 - 01:48 | 2858445 putaipan
putaipan's picture

just 'cause their data helped make the chart doesn't mean they should go missing.... ou 'est the squid?

plus- ya' add up the other reds without 'em we still hit the line.

Thu, 10/04/2012 - 21:00 | 2857991 Ness.
Ness.'s picture

Goldman and Jamie Diamonds.  






Thu, 10/04/2012 - 19:10 | 2857738 Bindar Dundat
Bindar Dundat's picture


I can't help it -- we are coming to the end of the line!

Thu, 10/04/2012 - 23:32 | 2858280 All Risk No Reward
All Risk No Reward's picture

The Money Power calls the shots.

They run Debt Money Tyranny on all the Western nations (every single one!) and bomb the living crap out of Muslim nation's that don't allow usury - the secret ingredient of Debt Money Tyranny.

After they create a central bank for the conquered nation, of course.

Debt Money Tyranny graphically explained

Osama bin Bernanke is just a front face for these criminals - just like the muppet presidential candidates.

All you have to ask yourself is...

1. WHO financed these people / institution

2. WHO finances the media that promotes these people / institutions.

It really is elementary.

If the love of money is the root of evil, the wickedest evil will try and secure the ability to create and control money.

And they did. 

But don't worry, they look all professional in suits - very few Americans can see past the cloaking suit and tie.

Fri, 10/05/2012 - 06:22 | 2858635 albanian
albanian's picture

+ 1oooooooooooooooooooooooooooooooooooooooooooooooo



Thu, 10/04/2012 - 20:27 | 2857652 Yen Cross
Yen Cross's picture

 I know one thing for sure! There is some massive " usd/ecb" under the radar liquidity going on right now!

 There are so many "obscure", banking arms in Europe. I have an idea, of who it is.  They are clearing IOS, thru a certain old school bank. It was originally set up "pre war" as an exchange/bank. I know the name, but I need to confirm a few more [axioms].

  Here is a link;

    I'm talking to some interbank buddies, about the swap rates in Europe right now.

  BIS can settle through this bank, and I'm still digging.

  Research unexpected; Zeti Akhtar Aziz: Renminbi trade settlement and investment in Malaysia - future prospects

  Still digging for that elusive bank. Sovereign Bank

  Still not the bank I'm looking for.   EIB is getting close) 

Thu, 10/04/2012 - 18:46 | 2857657 chump666
chump666's picture

And Mad Mario is providing the backstop.

Germany, your call. The crystal ball is showing riots in Frankfurt in 2013.

Who would have thought?


Thu, 10/04/2012 - 18:51 | 2857673 Squishi
Squishi's picture

this chart is just beautiful. bravo Zero Hedge.

Thu, 10/04/2012 - 18:59 | 2857692 Skateboarder
Skateboarder's picture

It's like bitchslapping the entire banking industry and a few Euro countries all in one slap.

Thu, 10/04/2012 - 18:55 | 2857680 The Alarmist
The Alarmist's picture

Didn't we decide a long, long time ago that it was Goldman Sachs?

Thu, 10/04/2012 - 18:56 | 2857685 Urban Redneck
Urban Redneck's picture

And where did the notion of T.B.T.Save originate? I don't believe I've ever heard Ben or Timmy even utter the heressy.

Thu, 10/04/2012 - 19:00 | 2857697 max2205
max2205's picture

Alice, when she's 10 feet tall....go ask Alice

Thu, 10/04/2012 - 19:23 | 2857757 Ratscam
Ratscam's picture

wait for a slight balance sheet adjustement of 1% by UBS or CS.
No problem, their assets only account for 500% of the Swiss GDP.

Thu, 10/04/2012 - 19:07 | 2857716 HD
Thu, 10/04/2012 - 19:57 | 2857863 newworldorder
newworldorder's picture

Another misdirected false flag initiative to distract the Euro masses.

You do realize that these proposals will not stop untill there is financial union of the 27 members and the eventual creation of the United States of Europe. This has been the plan all along. It will be achieved willingly for as long as it takes.

Thu, 10/04/2012 - 19:11 | 2857739 disabledvet
disabledvet's picture

the whole bond market? really? obviously this is a ridiculously complex issue so to present it in such a way is truly retarded. sure the US Banks appear small relative to GDP...BUT THAT'S BECAUSE THEY HAVE A BAILOUT REGIME! those banks are costing the Treasury TRILLIONS. you might ask "how can something so small cause such damage"...yet nay, veerily...we find ourselves lost in a strange land...and their is tooing and froing...and froing and tooing. and a great....

Thu, 10/04/2012 - 19:41 | 2857827 Raynja
Raynja's picture

at least blame it on the derivatives

Thu, 10/04/2012 - 19:18 | 2857769 BrigstockBoy
BrigstockBoy's picture

Wow, this is really amazing. I don't think I've ever heard a discussion on this before in spite of being a bank analyst.

Thu, 10/04/2012 - 19:23 | 2857782 knukles
knukles's picture


Fri, 10/05/2012 - 03:09 | 2858496 BrigstockBoy
BrigstockBoy's picture

Well, I'm a domestic bank analyst...on institutions from de novo to $15 billion in assets. But one thing I find about certain people on ZH is that they make generalizations before uncovering specifics, if ever. Devil's in the details...

I'm open to learning, don't profess to know everything and am enjoying the ZH journey.

A quote I like and I'm sure many know, "Check your premises..."

Thu, 10/04/2012 - 20:37 | 2857944 Wakanda
Wakanda's picture

Welcome to ZH.  I suggest you put on your big boy undies if you choose to hang out.

Fri, 10/05/2012 - 03:30 | 2858522 BrigstockBoy
BrigstockBoy's picture

I'm 50 years old, debt free, house is completely paid for, have 7 figures in deferred, have another 7 figures in liquid assets with roughly 20% in PMs that I hold physical. My spouse works and has substantial assets as well. I'm feeling pretty good personally even if I dread the state this country is in. What about you? Is your wealth just cliches and tough talk or have you executed a plan? Tell us what's in the pockets of your big boy pants...

Fri, 10/05/2012 - 03:38 | 2858527 akak
akak's picture

Welcome to ZH (and Fight Club) BrigstockBoy, and don't let anyone chase you away! 

The crowd here can be tough, even assholes at times, but are usually fair to those who play fair as well.

Fri, 10/05/2012 - 03:44 | 2858530 BrigstockBoy
BrigstockBoy's picture

Thanks akak. I boxed and played rugby in college so I've been hit a few times.

Fri, 10/05/2012 - 03:47 | 2858536 akak
akak's picture

I must admit, it took me a while to adjust to the "culture" here, but this is the only online forum in which I still participate, after having had to abandon (or having been banned from --- Kitco, cough cough) several others.

Fri, 10/05/2012 - 03:56 | 2858547 BrigstockBoy
BrigstockBoy's picture

I was thrilled to discover ZH because it's the kind of smart, analytical site I was looking for. The mainstream sites like CNBC and Bloomberg seem to be dispensing populist pablum.

Thu, 10/04/2012 - 22:11 | 2858131 11b40
11b40's picture

Part of the problem, right?

Thu, 10/04/2012 - 19:21 | 2857775 Schmuck Raker
Schmuck Raker's picture

I'm glad Tyler raised this issue again, because....Fuck You Bernanke.

Thu, 10/04/2012 - 19:22 | 2857778 unununium
unununium's picture

Another week, another $20B shoveled to the banks, buying their crap at par:

That's 10 space shuttles, or over 100,000 brand-new houses, or a sandwich for every man, woman and child on planet Earth.


Thu, 10/04/2012 - 19:25 | 2857785 knukles
knukles's picture

Hold the mayo on mine, please.  On toast.  No lettuce.  Extra thingamajigs on the side.  Ouch.. quit hitting me....

Thu, 10/04/2012 - 19:46 | 2857843 HD
HD's picture

All QE sandwiches are full of shit, so if you're going to eat it I'd pile on the condiments..

Thu, 10/04/2012 - 20:36 | 2857940 Wakanda
Wakanda's picture

The stank of QEternity can't be covered up.

I wouldn't even put it on the compost pile.

Thu, 10/04/2012 - 19:57 | 2857865 Overfed
Overfed's picture

Or a whole lot of batons, pepper spray, tear gas, plastic handcuffs and 'rescue vehicles' for our DHS Gestapo!

Thu, 10/04/2012 - 21:32 | 2858048 Totentänzerlied
Totentänzerlied's picture

"That's 10 space shuttles, or over 100,000 brand-new houses, or a sandwich for every man, woman and child on planet Earth."

Irrelevant. The money is still counterfeit and will be repaid via theft/robbery/extortion under duress. The end does not justify the means. Neil DeGrasse Tyson makes the same bullshit argument every time he opens his mouth, he should stick to physics and astronomy where at least there's plausible deniability of guilt for eventual consequences; not so when you're encouraging legalized armed robbery.

Thu, 10/04/2012 - 19:36 | 2857815 Haager
Haager's picture

I reckon, the only problem is just a way too small GDP of some countries. Let's inflate that.

Thu, 10/04/2012 - 19:37 | 2857818 orangegeek
orangegeek's picture

Who gives a shit. 


cntrl-alt-del is pending.

Thu, 10/04/2012 - 19:40 | 2857828 newworldorder
newworldorder's picture

It becomes more visually noticeable when you add the total of all banks domiciled, by country on this chart. No wonder the ECB wants direct lending to banks, bypassing sovereigns. What an interesting way to bypass the politicians and deal directly with the TBTF Euro banks.  No pesky cultural differences to get in the way.


Thu, 10/04/2012 - 19:48 | 2857846 samsara
samsara's picture

And since the banks aren't human, so the question is...
Who are the bank owners?

And the bank owners are Rothchilds,warburgs, et el (start there and work your way down. To Rockefellers etc)

Thu, 10/04/2012 - 20:18 | 2857902 Wakanda
Wakanda's picture

Though they have human DNA, the owners are barely human.  They have been possessed by evil spirits for generations. 

It's tough to dislodge those dark bastards, but I'm game.

The Second American Revolution, in the seen and in the invisible - FiSHeS.

Thu, 10/04/2012 - 20:22 | 2857910 samsara
samsara's picture

AmRev 2.0

Thu, 10/04/2012 - 20:34 | 2857937 Wakanda
Wakanda's picture

I love it! 

You should be in sales.

Thu, 10/04/2012 - 22:37 | 2858114 New World Chaos
New World Chaos's picture

These spirits are infectious awareness-eating parasites.  They are everywhere.  The cop who devotes his life to beating hippies because his dad beat him is infected.  The Gucci-addled trophy wife who lives for the fleeting approval of her superficial friends is infected.  Read more about them in "Wetiko", which Cognitive Dissonance endorsed here Or take a shortcut and read about them in these excerpts from Carlos Castaneda's "The Active Side of Infinity" (long page; search for "we have a predator").

In order to keep us obedient and meek and weak, the predators engaged themselves in a stupendous maneuver; stupendous, of course, from the point of view of a fighting strategist. A horrendous maneuver from the point of view of those who suffer it. They gave us their mind! Do you hear me? The predators give us their mind, which becomes our mind. The predators’ mind is baroque, contradictory, morose, filled with the fear of being discovered any minute now.

The consensus view is that they are alien energy creatures.  My personal suspicion is that we manifested them ourselves from the dark depths of our own collective unconscious.  Not saying they are illusory.  I am saying we manifested them, gave them a will of their own, and they got the upper hand.  They have been studying our weaknesses, domesticating us, engineering our culture, even selectively breeding us for thousands of years so it will be very difficult to get rid of them completely.

The Illuminati have perfected infection via ritual abuse of their own children. It really is possible to get little boys pregnant up the ass.  This is one reason why they are obsessed with bloodlines and muggles can't join them.

Thu, 10/04/2012 - 22:43 | 2858186 samsara
samsara's picture

Hmm.  The Tonal and Nagual.   

Look up the term Samsara

Fri, 10/05/2012 - 01:29 | 2858290 New World Chaos
New World Chaos's picture

Yeah, they keep us in samsara (the neurotic, egoic, worldly state of mind) because it is a fertile spawning ground.  The clear mind, with no internal dialogue, will drive them away.

Wrap your head around this:  The Predators/Flyers are similar to the Archons described in the Nag Hammadi texts.  Gnostics and Mexican shamans developed their worldviews separately, on opposite sides of the world, and their similarities were not recognized until the Nag Hammadi texts were translated thousands of years later.

Put on your tinfoil hat, because the link also invokes the Reptilians.

P.S. Choice quote:

According to survivors and therapists, ritual satanic abuse - a phenomenon totally denied by the authorities - might be practiced with the intent to nourish these entities on human fear and anguish.

Fri, 10/05/2012 - 04:09 | 2858557 Wakanda
Wakanda's picture

I see plenty of human fear and anguish, so I assume there is lots of ritual abuse.

Fri, 10/05/2012 - 08:55 | 2858981 New World Chaos
New World Chaos's picture

Fear and anguish feed them even without ritual abuse.  This is one reason why the puppetmasters continually crush our dreams and afflict us with scaremongering, crime, terrorism, war, prisons, poverty, crack, etc.  It's not just about their favorite power consolidation tactics (problem-reaction-solution, and divide and conquer).  It's also about making us more nutritious for the puppetmasters' puppetmasters.

Fri, 10/05/2012 - 09:30 | 2859179 New World Chaos
New World Chaos's picture

Cultures all over the world talk about an ancient, magical Golden Age before these entities showed up.  They put us in a permanent egoic "state of emergency" in which we forgot that we are One.  They bled off our potential into the Swamps of Stupid Bullshit.  2012ers talk about a rebirth of the Golden Age after our imminent revolution of the spirit.

Thu, 10/04/2012 - 20:22 | 2857912 Atomizer
Atomizer's picture

Let’s take a stroll into the past. At 2.00m, another Hank Paulson genetic DNA offspring provides his optimistic vision on the stability of EU.   


UKIP Godfrey Bloom MEP - The disastrous Euro March 2011

Fri, 10/05/2012 - 06:49 | 2858630 falak pema
falak pema's picture

rrrrrriggggght in sssssspades!

That contradictor of Mr Bloom is right out of the film : "the king's speech!"

PS : For a condemned currency the euro has moved up to : 1.30 today.

Currency game is a beggar thy neighbour race! 

Thu, 10/04/2012 - 20:29 | 2857925 Yen Cross
Yen Cross's picture

 Do your home work Fellas! See ya @  es 14.40 next week!

Thu, 10/04/2012 - 20:33 | 2857935 Atomizer
Atomizer's picture

Yep. Another day of debasing keeps the doctor at bay.

Thu, 10/04/2012 - 20:37 | 2857943 Yen Cross
Yen Cross's picture


Thu, 10/04/2012 - 22:04 | 2858030 socalbeach
socalbeach's picture

If I understand John Hussman correctly, there's no such thing as a TBTF bank, and if they fail equity holders will get wiped out and bank bondholders will take a haircut, but depositors won't lose anything. He's talking about Bankia here, which is "only" 25% of Spain's GDP per the above chart. If he's right bank bondholders must have a lot of clout in Europe and the US.

A couple selected quotes, not inclusive of everything he's written on the subject: (May 28, 2012 )

"Spain is providing these funds not as part of any restructuring, but by purchasing newly issued stock of the unrestructured, insolvent bank. While this will give Spain nearly 90% ownership of Bankia, the bailout effectively gives the people of Spain nearly worthless stock in an insolvent entity, putting them behind Bankia's bondholders. In the likely event that Bankia fails, is nationalized, and is then restructured, the 23.5 billion euros of public funds will vanish as worthless stock, and in the process of restructuring, the bondholders of Bankia will recover 23.5 billion euros more than they otherwise would have. In short, by putting off the receivership and restructuring of Bankia, Spain is simply enriching the bank's bondholders at the expense of its citizens, who are already being squeezed by budget austerity." (June 11, 2012; emphasis mine)

"Every major bank is funded partially by depositors, but those deposits typically represent only about 60% of the funding. The rest is debt to the bank's own bondholders, and equity of its stockholders. When a country like Spain goes in to save a failing bank like Bankia - and does so by buying stock in the bank - the government is putting its citizens in a "first loss" position that protects the bondholders at public expense. This has been called "nationalization" because Spain now owns most of the stock, but the rescue has no element of restructuring at all. All of the bank's liabilities - even to its own bondholders - are protected at public expense. So in order to defend bank bondholders, Spain is increasing the public debt burden of its own citizens...

The way to restructure a bank is to take it into receivership, write down the bad assets, wipe out the stockholders and much of the subordinated debt, and then recapitalize the remaining entity by selling it back into the private market. Depositors don't lose a dime."

Thu, 10/04/2012 - 23:17 | 2858250 mazanda
mazanda's picture

It would be very instructive to see a chart for the same banks showing their Derivatives notional values/domicile GDP.

Fri, 10/05/2012 - 00:53 | 2858392 debtor of last ...
debtor of last resort's picture

When ING implodes, thank God their headquarters is like Noahs Arc. We'll tug it to Crete and make it all a cozy bad bank.

Fri, 10/05/2012 - 02:37 | 2858475 DutchDude
DutchDude's picture

ABN is nationilized and ING still has to pay back a huge bailout.

Rabobank is the only AAA bank who didn't receive a bailout in Holland.

Dutch Bank Lobby are having arguments about legislation at the moment; could be fun :')

Fri, 10/05/2012 - 06:55 | 2858621 falak pema
falak pema's picture

It is interesting to see this chart and to compare it with the one presented in 2010.

The leveraging of French and German banks has considerably decreased; going down from 100% to near 70%. (I wonder to what extent Reggie's development on BNP-PAribas of 2010 days is valid today).

That basically confirms a hunch that I had. Their balance sheets have been purged of PIIGS loans probably via ECB plays.

That was probably a result of a Merkozy deal in 2009/2010 days; where France and Germany said : our banks first. They benefitted in this interim period whereas the other nations' banks have stayed the same or gotten worse! 

correction : the brits seemed to have thinned out as well. What about derivatives duck soup?

PS : Here is an interesting tit-bit on french sovereign debt : 50% of 2012 french bond issues were purchased in Asia/ME, not in Europe.

France: la moitié de la dette achetée par l'Asie et le Moyen-Orient en 2012

Fri, 10/05/2012 - 07:02 | 2858656 Fort
Fort's picture

I'm curious how many shares each of these these banks hold in the FED. Given that those shares are part of their assets.

Fri, 10/05/2012 - 08:29 | 2858798 GMadScientist
GMadScientist's picture

Shouldn't you be comparing to the EU GDP in total?

Or should we compare the SDP of North Carolina to the valuation of B of A?

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