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Peak Ponzi: Only 13% Of Loans In Bulgaria's Fourth Largest Bank Had Valid Collateral
One can debate whether, by virtue of fractional reserve banking, every bank in the world is just a ponzi scheme, and where the stability of the system depends entirely on the level of counterparty faith and general confidence in the system, in other words, a grand con game in which the central bank is tasked with making sure the con works as planned when confidnce gets "a little low."
One can not debate, however, that a bank had become anything but a pure Ponzi scheme - in this case, a piggybank whose funds were embezzled by its owner as described previously in "Fourth Largest Bulgarian Bank Seized After Bank Run: "Let's Not Tear Down Our House" Central Banker Begs" - when a token review, only upon its faillure, reveals that 87% of its loans were invalid!
From Bloomberg:
- BULGARIA CENTRAL BANK CORPBANK PRE-JUNE REPORTS 'MISLEADING'
- BULGARIA CENTRAL BANK SAYS CORPBANK ASSETS ARE 6.7B LEV
- BULGARIA CENTRAL BANK SAYS CORPBANK AUDIT SHOWED ONLY 13 PERCENT OF LOANS HAD VALID COLLATERAL
And more:
Audit report of Bulgaria’s Corporate Commercial Bank, under central bank’s supervision since June 22, shows its assets of 6.66b lev as of Sept. 30 need to be written off by 4.22b lev, central bank in Sofia says on website.
The good news: the level of corruption, embezzlement and loan devastation in a country like Cyprus for example, where the entire banking sector had to be bailed out by Europe, was just a little less than what happened in Bulgaria's fourth largest bank. Actually, it is unclear if that is good news.
The bad news: the Bulgarian central bank "regulator", just like its peers across the continent, and the world, had no idea what the reality of the balance sheet was until the owner vaporized, as did nearly 90% of the bank's funds, to borrow a Corzinism.
But it's ok: remember - all other central banks and regulators have full and unhindered visibility when it comes to the fraud and embezzlement across the other several thousands banks that comprise the European Union. Just like the Fed did when it supervised Goldman and JPM. The only problem is that just like then, so now, nobody dares to do anything, as revealing just how deep the rabbit hole of balance sheet devastation is, goes against the primary directive of every central bank around the globe: preserving faith and confidence in the global fractional reserve banking con game.
As for all those innocent depositors in Bulgaria's Corpbank who believed the Ponzi and con game would last indefinitely: our condolences: you most likely won't ever see a dime of your money, even on the deposits that were supposedly "insured."
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Has anyone checked our banks.
Collateral is so 20th century
Collateralized Ponzi loans are as good as gold... No?
This is how it works in the Balkans (Greece too). It's essencially forgery: The Banks, in cooperation with their central bank that "supervises" them, grant loans to offshores, and then get it back in capital increase by the same offshore. They create money out of thin air for themselves.
Forgery is only a byproduct of the laundry. Once a loan is granted, and the resulting development, usually some property development, is built, at a huge loss, all the mob cash that passed through the development to the contractors and consultants is legit.
All that usually goes down after being passed through at least 5 or 6 different offshore zones, and twice as many holding companies to come back as a capital increase on the banks books.
If the books are audited, the "collateral" is usually found to be worthless shares in an offshore.
I would posit that no collateral is valid, as it's nothing but IOUs from others. At this point, I can't imagine that tangible assets account for more than the tiniest percentage of collateral. Worse yet, those assets are extremely over-valued due to the bubblicious economy.
Then again, who could possibly have a clue as to the valuation of anything, given it's a subjective measure relying upon a broken standard.
Stress Tests! Such an effective barometer. FAIL!!!!!
I wouldn't be surprised if the figure in the US is below 30% valid collateral due to rehypothecation.
WhaT is a Student Loan?
Bulgaria WHo the fuck cares?
Who's Collateral?
how much collateral does the FED have to be making all their loans to the government?
None...
LMFAO!!! Yeah, ask the ECB about collateral....
ahaha
Define 'valid' in an invalid counter party world.
Blessed by the BIS?
Valid Collateral for loans? What's that?
Valid Collateral for printing? What's that?
Nope - no reason at all to use something like the BTC blockchain. Nothing to see here, move along you mesmerized-by-the-Kardashians comatose sheep. "Everything is fine."
None of the banks have good collateral. Let me know when we start marking to market instead of marking to fantasy, and I'll let you know when this pig will collapse.
Fantasy will continue indefinitely. They commit people for that shit don't they?
Just send over a few pallets loaded with 100$ bills. There.
"only 13%"?
Bulgaria banks have a loonnng ways to go in document forgeries ... no reason this shouldn't be 100% in no time ...
Bulgaria is clean i tell you, compeltely clean!
I'd say they're even less corrupt than Roumania,
What are the odds this one bank could bankrupt the Bulgarian central bank? And will the EU be willing to bail them out?
Just speculation, but Bulgaria is the last country needed to vote Yes to the Southstream pipeline from Russia. In the last 2 weeks it changed its previous Yes vote to No. Did this ponzi bank come into the EU/Bulgaria pipeline negotiations? (edit: EU has been pressuring all the countries involved to vote No.)
Bulgaria is building the South Stream russian gas pipeline and the US banksters are going to show the mercy .. if there is no south stream. Collateral is not important if you have pipelines into the FED/ECB.
I thought Penn Square only had one branch. Do you mean to say Monkey Brains Jennings opened a branch in Bulgaria and the Feds had no idea !!!!!!! That's funny
Will ABC media be bailed-in??
All by design .........now that they joined the EU, the EU is their collateral !
All by design .........now that they joined the EU, the EU is their (bitch, er ) collateral !
Thanks, I was actually thinking about asking ZH to review what's going in Bulgaria from an external point of view.
Is Corzine a Bulgarian citizen now?
First born counts as collateral in Bulgaria, right?
Wait, acording to Bulgarian law there need to be 10% colleteral on the bank's capital... A % thats way higher than in US (3% I think) so the Bank is farely well solvent! What do you mean "only" 14% colateral?