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Who's Next? Italy's Monte Paschi Admits To Billions In Deposit Outflows
It appears, given news from Italy today, that European depositors are increasingly coming to the realization that deposits in their local bank are not 'safe' places to put their spare cash, but are in fact loans to extremely leveraged businesses. In a somewhat wishy-washy, 'hide-the-truth'-like statement on Monte dei Paschi's website, the CEO admits to, "the withdrawal of several billion in deposits." Of course, the reasons why these depositors withdrew their capital from the oldest bank in the world will never be known though of course he blames it on "reputational damage" from their derivative cheating scandal. Apparently the fact that this happened to come about six week after said scandal and the bank's third bailout, and that the prior two bailouts did not result in such an outflow of unsecured liabilities (at least not to the public's knowledge), was lost on the senior management, as was lost that a far greater catalyst may have been the slightly more troubling events in Cyprus in the second half of March. Unsurprisingly, as Reuters notes, the CEO declined to give a forecast on the level of deposits at the end of the first quarter of 2013; no wonder given the bank just doubled its expectations for bad loans and the 'Cypriot Solution' dangling over uninsured depositor hordes.
Customers' deposits at Italian bank Monte dei Paschi fell by "a few billion euros" ... the bank said in a document posted on its web site on Saturday.
...
But it has yet to make clear what impact the scandal itself had on its first quarter results.
"The illicit nature of the derivatives trades and their consequence on the bank's assets exposed the bank to reputational damage that was immediately translated into...the withdrawal of a few billion euros in deposits," the bank said in a document for shareholders attending its April 29 meeting.
...
But he declined to give a forecast on the level of deposits at the end of the first quarter of 2013 or to indicate the outlook for net interest income and loan loss provisions.
A quick glance at BMPS' capital structure shows that there isn't a whole lot (read: almost any) of impairable securities below the unsecured liability (i.e., deposit) level. It is also obvious that when the bad debt impairment begins and depositors start getting whacked at least senior bonds, which should be pari passu, will feel the pain too as per the Diesel-BOOM doctrine, although we doubt this particular case of pain sharing will bring much comfort to any and all uninsured depositors in the oldest bank in the world.
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won't clicfk a link
for less than an oz or two...
stealing money from one side of the ledger and putting it on the other
Zhou Tonged. Better get some Bitcoin.
Pull your cash out 500 bucks at a time to build your little mattress stash. ;-)
honey ..I'll be down the boat
working on the gabard strake..
boat rebalsting 101..
Interesting. If the Italians really are seeing the light and getting their money out, then where are they putting it? Curious. Any to track metal sales to Italy?
Paper. Might as well for all the interest you get in the bank.
http://www.fdic.gov/about/srac/2012/2012-01-25_minutes.pdf
The Meeting of the Systemic Resolution Advisory Committee
of the
Federal Deposit Insurance Corporation
Held in the Board Room
Federal Deposit Insurance Corporation Building
Washington, D.C.
Open to Public Observation
January 25, 2012 8:45 A.M.
.
FDIC & Bank of England Create Resolution Authority for Unlimited Cyprus-Style “Bail-Ins” for TBTF Banks!
http://silverdoctors.com/fdic-bank-of-england-create-resolution-authorit...
I know they don't care but I don't want to get any shares of some bankrupt bank instead of my deposits. @ssholes
I seem to have a problem getting my Brain around this:
If people have been making SSI contributions for over 70 years,where has all the money gone?
If Banks have been paying FDIC premiums for 70 years,why is there only $30 billion in the fund?
I remember Reagans SDI project (Star Wars) and the huge amounts of cash vaporized,but no accountability because they were very hush,hush. Need to know system...
Agreed,one of the big banks in Spain,Italy or France implodes and my bet is within 60 days. We need to start a pool here on ZH. Winner gets a trip to sunny Zimbabwe,where your currency goes further every day.
SSI money is placed into the "general fund" and spent. The money is not held separately, the Supreme Court has ruled that SSI money is a tax, not a benefit guarantee, and that no one has any actual right to benefits. The government pays said benefits voluntarily and can discontinue them at any time.
Desperate times call for desperate actions. I am still inclined to believe that this is all part of the plan. A planned collapse that will drive the dependent directly into the arms of the EU. If the economy was nose-diving from a reasonably healthy economy the citizens wouldn't put up with it, but they are on their knees right now. Too weak to fight back and nothing to fight with. The EUcrats, have them exactly where they want them. For America it will take longer. While we are broke, we have yet to come to our knees. The EU collapse will have Europeans desperate and accepting of anything that represents currency, even if they print it on toilet paper, so the Euro will continue. But their collapse will push money into our broken mess and keep it afloat a bit longer. This gives our government the time to get us "conditioned" to the new realities. We WILL have a wealth tax beyond that we are experiencing now with inflation and the progressive income tax, both of which are only hurting those something less than the wealthy of the Buffett bracket. The elites must survive, the rest of us are livestock. As we see in farming, when the price of feed increases and the rain doesn't fall, the livestock is taken to the slaughterhouse, leaving only the best of the breeding stock. Sacrifices must be and will be made…by the elite….to us.
This may be a dumb question, but I'll ask anyway. Sorry for showing my ignorance.
1. If Bank of Cypress has derivatives exposure and they close the bank, how will the derivative get removed?
I would imagine they would need to get absorbed into receivership, but I don't know why anyone would want to get anywhere near that kind of deal.
Edited another typo....
Contrary to those who think this collapse of the financial system is pre-planned (I may be one of them), consider the possibility that 4 1/2 years after the big Lehman fallout and trillions of dollars thrown at it and sub-prime and all the other varieties of theft, misallocation, hypothecation, re-hypothecation, derivative exposure, loans, loans on loans, haircuts, debt restructuring, bail-outs, now bail-ins, perhaps the idiots in charge (FUCK YOU, BEN) have run out of ideas and the system is actually collapsing sooner than they had planned or maybe without any planning at all.
The idea that an unplanned black swan like Cyprus could trigger the now outright theft of depositor funds is entirely believable when one considers that these same people - bankers and politicians, worldwide - have fucked up individuals, marriages, kids, towns, cities, school districts, pension funds, a couple of countries (make that a handful), a complete, total, unstoppable collapse of confidence in the system is a sound probability.
At this point, after the Bush years and the torture of the past four years plus, it the end should be welcomed with open arms and a few good bankers and political hacks (aren't they all hacks?) should become societal sacrifice.
Go medieval on their asses. Barter, cold hard cash, gun in hand.
Let's get it on.
I'm one to believe that this was never any big orchestrated plan and that it's all pretty much been reactionary.
That which cannot continue forever won't. The System, which never was going to last forever, just started to go unstable, go into its final phase. Everything eventually comes to an end. What we're seeing is the closing down operation. And when the end is near people act in all sorts of different ways...
Sacrificing bankers and politicos does nothing if we don't understand WHY we ended up here (which was due to the flawed premise of operating as though this is NOT a finite planet).
Right. "When the going gets weird, the weird turn pro." Hunter S. Thompson
The banks have for a century or two determined how the world will progress -
which continent, which sector, what time frame, the how, the when etc. They have done
this by completely dominating the world govts who then execute their masters' plan.
Have any of the banks invented anything that most folks find meaningful today? Did
they invent the telephone, the automobile, the train, the plane, the life saving drugs,
the computers, the internet, the mobile phone......? No.
And they decide which direction humanity will go?
There is no democratic process that is adhered to here.
There are 7 billion slaves on this planet.
Will Eurocapital controls be rushed through on this bank holiday weekend?
http://hat4uk.wordpress.com/2013/03/29/smoke-signals-special-eurogroup-w...
"In the last 48 hours, I’ve been getting some worrying signs from Out There. They suggest to me that a major move might be attempted this weekend. What follows is a compendium of why I suspect it’s a strong possibility."
Booya, that ain't all that is brewing over the weekend.
We see the Russians doing surprise exercises. The chinese also. Why? Because they know that the US or isriel is about to do something like attack Syria, or possibly Iran. Perhaps even give the world another 9/11 type false flag event. Everybody knows that the satanic babylonians relly like to pull off some nasty things on Easter, or in this time of the season. We must all be vigilant and watch for any sort of signs that point to the chaos the babylonians want to create to cover, or cause the crash. Let all the war making and false flag events to instigate WW III cease and desist now!
Just to let you all know how bad things are getting out west there; take a look at this story that has slipped under the rug. All the gun grabber battles and recall elections in Colorado have clouded over the real touchdown play. After this bill is signed, any one can be accused of being insane or suspect by the secret service because of any disagreement with the state. Imagine all the snooping on facebook postings, telephones, computers, or even postings here on ZH all being graded. Oh, you do not agree with the state, well then, you better go with them secret service guys for a three day vacation you might not ever come back from. And how about some SSRI drugs? Can you say off to the Stalinist gulags?
State Grants Secret Service Vast New Powershttp://www.fromthetrenchesworldreport.com/state-grants-secret-service-va...
Say goodbye to free speech in Colorado.
+1 Good catch....The great uniter, King Obama, is going to make this a blue-red state issue...
Just Like Obamacare-- another great divider
Guns and Obamacare... rip this country right down the middle.
The haves and the have nots
divide and conquer
That blog peddles cab-driver gossip and tittle tattle.
BULLISH!
Inside the Global Money Cartel
A look at the International Banking Cartel led by the Bank for International Settlement (in Basel, Switzerland) known as the bank of central banks (58 central banks) and The US Federal reserve System.
Also a look at banking tycoons: from the Rothschild family in Europe to JP Morgan and others in the US. How banks not only control governments but also appoint politicians through huge campaign donations.
http://homment.com/banking-Cartel
Nobody cares what their fractional reserve bank is doing unless they can't withdraw their money. Too funny. I guess depositors didn't know that Cyprus was loaning money to the Greek government & took a haircut until after they can't withdraw their money. At least the eurozone has somewhat honest money. If FDIC can't cover the deposits in the US, knowing congress & Bernanke, they are going to print money to cover the losses nominally. People in Cyprus have to let their banks fail, accept a depositor haircut, or do the dishonest thing by creating inflation. Inflation is just a haircut anyways on purchasing power (money printing).
Okay --- so you want to know what THE FUCKING PROBLEM is?
Simple. Banks were created to mediate loans between savers & entrepreneurs. Savers were just those who didn't consume all they produced or helped produce. Entrepreneurs were those who created new businesses using capital saved by the savers.
So what has this initially simple institution morphed into? An institution that uses OPM (other peoples money) to gamble on short term bets such as ninja loans, sub-prime housing, CDO's, derivatives, stocks & bonds, etc. Which in & of itself is not such a big deal, IF THEY ACCEPT THEIR LOSSES & GO OUT OF BUSINESS. The problem in a nut shell is that in 1913 congress created the federal reserve, which is a private company owned by the banks with some meaningless supervision by a few dumb asshole pseudo-intellectual economists who are paid by the banks that own the fed.
What does the fed do? It creates paper & digital moola to buy the bad loans made by the banks that own it, to lend to the banks that own it at zero % (ZIRP) to make other loosing bets & to buy the debt of the federal government (another loosing bet).
We know all of this shit. Please quit going on infinitum about it. If you don't have a way to fix this fucking system SHUT THE FUCK UP ALREADY. We're tired of hearing about the fed, TBTF banks, derivatives, CDOs, CDS. We know what all this shit is. It's ways to make money without working --- gambling. We know all we need to know about sovereign debt, all the meaningless gouvment data, etc.
All we want to hear from you is HOW TO FIX THIS MOTHERFUCKER ----------- this does not mean hearing your analysis of other people’s proposed solutions. We're also tired of that shit.
It's been said many times. It can't be fixed now. It's too late. Just do your best to prepare for massive failure.
I'm not sure your premise is correct.
I'm pretty sure that banks started because people wanted to make money with their money.
Beyond that, the system has been in place for a minimum of 400 years and that's only including the central banking proportion.
What makes you think it'll ever end?
No progress to report?
The fed was created in 1913. The dollar is worth 2% of what is was then.
Looked at the people on food stamps data lately?
Looked at the financial systems % of total profits lately? Can you tell me what they produce? How much food. clothing, shelter,
transportation, energy, health care, etc? I'll tell you ---- ZERO. Why do you believe we need them? Because stupid asshole Geithner told you so?
That's nothing mate.
The Bank of England was started in 1694. The Great British Pound used to be a troy pound of Sterling silver. Yah it's a unit of weight. Worth something like 280 USD equivalent today. It has lost 99.5% of it's value. It's worth 0.5% of what it was then.
This can go on for a LOT longer; another 400 years easy.
If people realize that putting money in a bank is the same as giving an unsecured loan at 0% interest to a mafia man headed to Las Vegas, there would be no deposits in banks.
It will take a little time, but we will get there. Right now, people still believe that the government will cover the gambling losses.
I keep most of my money on deposit in Vegas casinos, they are always anxious to give it back to me. I trust the Mafia ... and the perks are fantastic
Thank Bugsy.
Nice letter fom Central Bank of Cyprus a month before The Expropriation
http://deutsche-wirtschafts-nachrichten.de/2013/03/31/zentralbank-von-zy...
ZH already covered this two days ago:
http://www.zerohedge.com/news/2013-03-29/oooops
I doubt we'll be seeing this story on Squak Box tomorrow morning.
Has anyone considered the role of NATO in this? Crowd control?
NATO was designed around Europe primarily to deter plans by the former Soviet Union.So what is NATO doing in Afghanistan? Look,NATO is the force side of the UN, which is largely controlled and financed by the bankster/Trilateral commission/DC mob. Also,NATO keeps the defense contractors happy turning out planes,bombs,ammo,etc.
During the '68 riots in France,De Gaulle mysteriously disappeared for a few days,and it was reported that he was in consultations with the Germans.Perhaps he was discussing worst case scenarios.Part of this mystery becomes clear when one remembers that France never joined NATO (at the time).
Also,the '72 gold repatriation by France,which caused Nixon to close the gold window and scrap the Bretton-woods treaty,could be looked at as French payback for perceived CIA meddling during the '68 riots.
And precisely how solvent do we all think the FDIC is?
Perhaps we have 'Peak Banking' along with all the other Peaks.
Currency wars have been joined by bank wars. By eliminating the Cyprus banks, which were way outsized for the small island, there are that fewer banks to compete for deposits/business. The companion warning to Latvian banks not to accept the Russian 'mob' deposits being another attempt to channel fleeing deposits into the stouter European banks (see German). Just a coincidence that a major German bank failed/had to be bailed out by der Stadt recently.
Since the Swiss are now allegedly coughing up info on their depositors to governments, then we have 'Peek Banking' as well.
Question: Silent, secret, public, panic, calm. etc. bank runs are in full bloom all over Europe and beginning to occur in other areas of the world. Where is the mega billions going? Doesn't appear to be going into gold. Where is it and in what form? The routes have been established for the relative trickle of funds thus far. It will soon become a flood equal to the days of Noah's Ark. Where is this money going? What is capable of handling trillions in fiat currency abruptly converted into - what? Any guesses?