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ECB To Launch EU-Wide Audit Of Bank's Balance Sheets
France and Italy are fighting against ambitious plans by the ECB to basically 'externally audit' 140 banks across the EU representing 80% of Europe's banking assets. The implementation of the project (by the head of financial stability at the central bank) appears to have two main drivers. First, to understand which banks' balance sheets are inhibiting lending (and why); and second, to ensure there is clarification on taxpayer-funded bailouts versus shareholders and depositors taking losses first. As Zeit reports, it seems the ECB appears to be questioning the reliability of the banks own figures.
Via Zeit (via Google Translate),
The European Central Bank (ECB) is working on a strong kick to overcome the crisis. It goes to the timely information in a rehabilitation center to European banks, whose balance sheet problems inhibit lending.
With the implementation of the project was Ignazio Angeloni commissioned, head of financial stability at the central bank. The timing is already set. From the autumn of the monetary authorities will illuminate along with the national supervisory authorities, the balance sheets of major financial institutions in the euro zone. There is a total of around 140 banks, which together cover about 80 percent of the market.
The ECB teams are already formed to examine the books as required directly into the banks. Thus, at the end come out reliable figures, is the intention of the central bank also independent consultants - to be on board - Wirtschaftsprüer or investment companies.
...
Results are expected by early next year. If they are present, to use a stress test to examine how well the banks cope with a renewed economic slump. Financial institutions that can not even fill possible gaps capital should be recapitalized by the Member States. If they are not able to lift the renovation alone, they can access loans from the ESM bailout fund to fall back.
The risk should not alone bear the taxpayers: Even shareholders, creditors and customers of the affected banks will be first used to cover the losses.
Whether the ambitious timetable can be adhered to, is not clear. Especially France and Italy, reportedly to fight against it, to have their banks by external auditors. The ECB could see forced to look not as accurate when examining the balance sheets, because there is still no European resolution authority for banks are.
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LOL
Under the guise of an Audit, the ECB is actually identifying all the large depositors and setting up excel speadsheets. When the time comes to cyprus aka corzine the savers of europe and make them into investors, they'll be able to do it cleanly and swiftly.
Corzined Europeans
So a basic audit of balance sheets wasn't involved in the so-called "Stress tests"?
What exactly were they testing?
Circle jerking...
We all know this ends in war, dead people, and wealth(ier) banksters.
Long PMs and stocked Bunkerz!
@Groundhog
Knowing who the connected depositors and shareholders and bondholders are will allow pre-bail in "notification" of connected bagholders so an early exit can be arranged.
Their skill at lying thru their teeth with a straight face?
Template!!!!
The need to identify the sacrificial lambs for when the CBs sit down and negotiate who lives and who dies.
what were they stress testing ?
If the banksta lies were less consequential than the CB printing press promises taken at face value as economic truths.
If monetary sleight of hand could make structural deficits of debt mountain into hard assets by a stroke of a pen. Now that there is no growth in Eurozone they all know this game is running out of time and dribbling into 100% new money recycling to maintain banks; not sustain the economy. Asymptotes are like icebergs. You can't rebound off them like Superman.
Given that gold and gold receivables comprise a large percentage of central banks' international reserves, surely the audit should check and publish whether the gold actually exists or whether its on 'deposit' with the bank of nova scotia or barclays etc, or swappped out in a gold swap.
O wait, I forgot that this would be 'highly market sensitive' information and that the IMF bodss were bullied by the ECB, Bank of England, Bundesbank, Banque de France, FRBNY, US Treasury and BIS into caving in and endorsing the gold and gold receivables shenanigans...We wouldn't want anyone to see the extent of this deception now would we.
So the compliant beancounters will be told, nothing to see, you see the balance sheet should say gold and gold receivables, look the IMF said so..
Sorry, I thought they were stress test auditing central banks' balance sheets...call my naive then.....naive!.:)
This obviously never would happen in public...
That seems like it exactly. They do it over the weekend and have time to spare for Octoberfest beers in September.
Oh the knock-on effects. The great reset, financed by muppet depositors. Someone post that kermit graphic, please.
Separately, in this week's Economist:
http://www.economist.com/printedition/2013-06-01
Towards the End of Poverty is the cover. Seems to me, in Europe, Poverty is just getting started.
I hear it's never been easier to apply for a student loan...
We should probably differentiate between getting Cyprused and getting Corzined. The former is when your government skims it to cover said government's funding issues. The later is when the politically connected head of your bank (or other financial institution) transfers your deposit to the bank of one of his politically well conneted buddies after taking a sizable chunk for himself.
Neither is particularly pleasurable for the depositor, and I suppose being both Cyprused and Corzined even less so.
Parallel process, i.e., we learned how to lie from you, boss.
Yes it is funny
But something is really up here
Partly it may be the tug-of-war between Mario Draghi and the ECB and Angela Merkel, who is trying to keep everything in Europe on hold till the German election
Mario may be posturing to get Merkel to agree to a deal ... if she gets re-elected - with Mario's help in keeping things afloat till then - then after she gets re-elected, she agrees to print money like a post-Keynesian whore ... in order to reverse the collapse of the Southern part of Europe
There are signs of this already in the 180-degree turn in the remarks of cranky and ornery German finance minister Schäuble ... things in southern Europe are so bad it is on the verge of blowing up the German banks and Germany itself, and Schäuble is talking like he wants to print
Article above speaks of deposit confiscation like in Cyprus
Good question is whether Mario Draghi went along with that in Cyprus, or was totally opposed to it along with Ben Bernanke, as Jim Sinclair says ... Sinclair believes the Cyprus confiscation, pushed by Lagarde, is the reason Ben Bernanke cancelled going to Jackson Hole and indicated he would not seek another term at the Fed
If there is another deposit confiscation in Europe, like Cyprus, but in a different country, Europe and its banks will totally implode ... Lehman Brothers x 5 and maybe the global economy as well
People halfway believe the shite that Cyprus was 'unique', but a 2nd confiscation will blow everything sky-high, as Mish likes to say
Mario Draghi is a wily one, and this threat to expose the dirty linen of the EU banks - including Deutsche Bank with its world-class-leading 75 trillion of derivatives as ZeroHedge has documented - is very likely a well-planned chess move by Mario
In the end....
NOBODY WILL REMEMBER ALL OF THIS!!!
THE ONLY THING THEY'LL REMEMBER IN 10 YEARS FROM NOW
AND WHAT EVERY WESTERNER WILL REMEMBER AS THE PROUDEST MOMENT IN THEIR LIVES....
WHAT MAKES iPONES and PADS LOOK LIKE TOYS
is this:
http://cdn2-b.examiner.com/sites/default/files/styles/image_content_width/hash/1d/13/1d138e79803af86406b1fe0468efb263.jpg?itok=CG0-R_Hh
http://wac.450f.edgecastcdn.net/80450F/965kvki.com/files/2013/05/burger-king-hands-free-whopper-630x349.png
http://guardianlv.com/wp-content/uploads/2013/06/hands-free-whopper-in-use-450x257.jpg
http://cdn.ph.upi.com/sv/i/UPI-2841369962575/2013/1/13699631817115/Hands-free-Whopper-holder-introduced-by-Burger-King.jpg
http://cdn2-b.examiner.com/sites/default/files/styles/large_lightbox/hash/d0/09/1370027169_3494_4.jpg?itok=qXTAL6kZ
What a sad a pathetic country we have become when we have to strap a hog trough to our necks, because we are too lazy to lift a peice of horse meat to our mouths.
I'll bitchslap the first moron I see wearing one.
Is that REAL ....were thise pictures released on April 1st?
I am fucking shocked - what type of person polled my market research firms would have given them belief this was a winner.
Burger King is revolting anyway, I would need to be very drunk to eat one. Having one strapped to my neck would make me puke.
I particularly like the shot showing a man giving CPR wearing one.
Flip her over, amigo...
BS! They taste okay.
Probably not the healthiest meal, but who cares. As long as you don't eat it all the time...
Lol,
design fail.
True hands free means the burger must rotate and advance closer to the mouth as the diameter is diminished.
A simple single ram function may be too abrupt for many consumers....
What's wrong with that? All beasts of burden have feed bags.
As the last picture (with the woman driving so that her hands are on the steering wheel and not the burger) illustrates: another revolting idea in the name of security
Who gives a flying fuck?
Euro banks were stress tested years ago - everything AOK!!!
These fucking assholes just diddle the numbers and then spew it to the media to let the lemmings know that their life savings is in good hands.
TELL ME ABOUT IT!!!
I'M ALSO STRESSED!!! SO WHY THE FUCK DON'T I GET AUDITED AND GET TO HEAR I'M FINE??!!??!!??
Because everyone around here knows you're not fine.
Just joking, have a nice day.
You don't mean these two lemmings, do you? ;-)
http://www.wulffmorgenthaler.de/img/strip/2013/04/27.jpg
(Translation: The first two lemmings. One say's: "You first", the other one answers: "No, you first!")
I don't see it...
You mean there MAY be NO sta-bil-a-tee????
AAAAaarRRRRHH!!!! BLASFEMY!!!!
I CAST YOU OUT OF OUR UTOPIA YOU DEVIL!!!
WHAT YOU ARE SAYING NOW IS THE SAME AS CALLING OBAMA BLACK AND THAT'S RACISME!!!
coloured... also racisme...
toned.... also racisme...
non white.... WRONG! HE'S HALF WHITE!
etc....
The picture should possibly look more like this:
http://www.rottmeyer.de/wp-content/uploads/2013/06/Fotolia_40157150_XS-1...
Bankers lying,
whocouldhavenode...............................
ECB. Couldn't they find a better actor for this skit?
Like Bill Murray as Ned Ryerson?
Double post. I'm two for two this morning.
Dexia and Bankia will no doubt receive doubleplusgood ratings.
Right now they are on doublesecret probation.
It's got to be pretty bad if you are trying to swap assets with Dexia or Bankia. Their phones are ringing off the hook.
ROTFLMAO .... and who's going to Audit the Auditors ?
... "AA" still around ?
EUSSR : Dig a hole ; Fill it in ; Repeat
this might indicate someting is about to happen, they are trying to look proavtive, like it matters now
The banks will get an "A" because they are all highly stressed ...
"ECB appears to be questioning the reliability of the banks own figures."
No shit!!!! How can you trust any institution anymore. They all lie.
Remember this:
"The information in this report is taken from sources believed to be reliable; however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness. This report is produced for information purposes only."
"The information in this report..............is so we can later pay out in fiat and not get litigated."
BK is BK .... no matter hw many times you "do" the books.
Early next year! Well, I guess that will kick the can down the road for another 6 months to a year. Give me a break! Like they would ever say anything negative to the public about the banks balance sheets. Stupid show.
Yeahbut ... will the ECB attempt to mark-to-market the banks' balance sheets? And then order the results to be published? Methinks not. That would surely create complete hell and bring down 80% of EU banks thru insolvency.
Exactly, do you mind if I have a look at the underlying assets and collateral motherfucker?
No, we won't mind if you have a look or two at our snickers-wrapper! Do go on! ;-)
And once they see, how really fucked up those balance sheets are, the Cyprus template will be applied big scale.
This is stupid, the answer is simple, just look at how much monetization has occured. They bailed the fuckers out with printed money, how much money did you fuckers print? There's your fucking answer!
These people are a freaking joke. Why are they not lending? Because they have a bunch of useless mark to fantasy fucking shit on their books you clowns!
+10
Not quite.Might ust be the starting point.
That could just be the cashflow required to stop bankruptcy without dealing with
the underlyong insolvency itself.
haha, i bet the audit results will be too embarrassing to show to anyone.
This is a freaking joke.
Forget about banks' numbers, but are you telling me that people believe that ECB published are reliable?
we shot past joke a long time ago.
To mix movies up, I think we are only a few parsecs from plaid.
pods
A lot of time and expense could be saved with a phone call to Reggie M.
funny shit this QE rally attempt.
USD devaluation and bail-ins will occur upon the introduction of the new $100 in October; great illuminati symbolism with the golden inkwell, btw
Yeah, what's with that?
There have been lots of stories on the Way Out websites lately about the mysterious new Ben Franklin.
Anybody have the facts?
They have secret disappearing ink for the 0's that will activate with an RF signal.
Maybe they will start printing new $100 bills that have time sensitive ink. After 6 months a zero will dissappear. After a year 2 zeros will dissappear. That will encourage the sheep to spend!
Great minds...
It doesn't matter because they aways pass.
Another dog and pony show for the muppets.
"The best way to rob a bank is to own one."
Extract all the reserves and ship offshoore and bankrupt the bank. Then claim you need an immediate bailout or FDIC in the US. Rinse and repeat.
We are going on five years of groundhog day and the muppets keep falling for it.
Why only 80%. The rest on double secret probation.
Bill, salesman at EU Office Supply, Ltd:
"Jim, what's this order from Brussels for 50 imperial gallons of white out?"
This is just to get some vig moving around...payoffs will flow....Swiss bank accounts need filling....just politicians at work
What is an external audit? Opinon poll of the sheep?
But but, when depositors get a haircut, the banks assets will decline also?
You are mistaken. They plan to turn deposits, which are liabilities to them and assets to you, into assets for them and ZERO for you. Cyprus is not a template!!!
I mean really, isn't it time to declare open hunting season on all bankers and politicians?
You are 100% correct. Hunting season, do i need a license?
Oh, here we go...another stressless stress test designed to mask the truth. Betcha it all comes out looking fine and peachy. No worries here mate.
We need a designated day to stress test the worlds banks. I'd like to propose we call it "Cyprus Banking day". We get 99% of the worlds population to pull all of their cash out of the banks. That should account for 5% of the total deposits. Then the next day we deposit the money in the banks that are left standing.
Can the safe at Moe's Bar hold that much cash?
http://www.newsoficeland.com/home/images/simpsons_03.jpg
How about the day before http://en.wikipedia.org/wiki/World_Savings_Day (for Cyprus Banking Day; the day to to pull the money)? :-)
This is what happens when stress tests are designed for propaganda as opposed to trying to understand precisely where the shit is hidden.
The value of FRAUD is priceless. You can't audit magic.
It's a bit late, isn't it? CYA? Long mattresses_with_money_boxes.
This is but a power play - for an unelected ECB to usurp the power of elected national governments. The article also misses the European age demographic impact. Just as in the United States, it is more likely that demand for loans is lower, not that the supply. Retiring baby boomers either don't need the loans or European banks can recognize poor credit risks (just as the ECB wants them to).
Get over it, they are just making a little bit of noise so that sheeple think this is a real test, but it will be a dog and pony show again.
That is going to be fun.
An ECB led EU wide audit is going to show the interconnections of the banking system. Not just the EU is then exposed. I think this is going to pull more than 50% of all the hidden shit and bad risks (bets turned sour but) of the Western banking system into the light.
Go Mario Dragonkiller go, go go go
It's all about Basel III.
It's all about Basel III.
That ones report that will never be made Public. Hell I wouldn't be suprised if the team that puts it together aren't all found to have died in a plane crash afterwards.
They are trying to get a handle on how much they can sieze.
At which point when said "audit" is done they will do nothing, or prepare a better lie. Just saying.
But God forbid anyone trying to the audit the EUs books...
Slag pimps one and all! I know, low brow and not very technical but underlying fundamentals cannot mask this fact.
Just preparations for a defense of "plausible deniability" when they are all hunted down, and hauled in front of a citizen's tribunal. I think their defence will look rather weak, when staring down hoards of angry citizens with torches, and pitch forks.
I predict that rope sales will start to rise soon.
http://online.wsj.com/article/SB10001424127887324299104578527202781667088.html?mod=WSJEurope_hpp_LEFTTopStories
BRUSSELS—The International Monetary Fund is set to admit to major missteps over the past three years in its handling of the bailout of Greece, the first spark in a debt crisis that spread across Europe.
In an internal document marked "strictly confidential," the IMF said it badly underestimated the damage that its prescriptions of austerity would do to Greece's economy, which has been mired in recession for years.
But the fund also stressed that the response to the crisis, coordinated with the European Union, bought time to limit the fallout for the rest of the 17-nation euro area.
The IMF said that it bent its own rules to make Greece's burgeoning debt seem sustainable and that, in retrospect, the country failed on three of the four IMF criteria to qualify for assistance.
A version of the document, prepared by IMF staff and seen by The Wall Street Journal, was expected to be released publicly by the Washington-based fund on Thursday.
Over the last three years, a number of senior IMF figures, including the current managing director Christine Lagarde, have repeatedly said that the country's debt level was "sustainable"—likely to be repaid in full and on time.
But the document described the uncertainties around the Greek rescue as "so significant that staff was unable to vouch that public debt was sustainable with a high probability."
The IMF also said that it was too optimistic about the Greek government's prospects for a return to market financing and its political ability to implement the conditions of its rescue program.
Someone ought to give Mr. Angeloni a security detail, lest he shortly be found floating in the Seine along with his audit idea.