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It’s Starting to Fall Apart: German Bank Sues the ECB
We probably haven’t seen the last of the troubles in the Eurozone. As the European Central Bank is trying to put out several fires with regards to Greece and its huge Quantitative Easing money-printing program, it’s important for the Eurozone to keep everybody on the same page. But as could be expected, some banks in the Eurozone aren’t really too keen on playing ball and have rejected the interference of the central bank.
An apotheosis seems to have reached as a German bank has now effectively sued the European Central Bank. The Landeskretitbank Baden-Wurttemberg (hereafter ‘L-Bank’) has protested against the fact it would now fall under the new regime whereby the ECB would assume supervision over in excess of 100 financial institutions in the Eurozone.
L-Bank is arguing the cost to comply with the newer and stricter rules is too much to bear for a bank that has a low-risk business profile. Despite having over 30B EUR in assets (which was the threshold for banks to either have the ECB or the national regulators as supervisor), L-Bank says it doesn’t belong on the ECB’s watch list as for instance the region of Baden-Wurttemberg is providing a direct guarantee. According to other sources, the cost to comply with the ECB demands could easily be 5-10M EUR per year which is a substantial amount for a bank generating just 100M EUR in net profit.
The lawsuit which was initiated earlier in March will be an extremely important test case for both sides as several other smaller banks are watching the developments closely. The case was brought before the European Court of Justice but it will very likely take a while before any verdict is rendered and if the ECB would grant an exception to the bank’s statute, more requests for a status review will be initiated. In its annual report, the ECB already had to admit three banks asked for a review by the internal board of the ECB to decide whether or not they belong to be under the supervision of the ECB and these applications could be the first cracks in the ECB armor.
If the European Court of Justice sides with L-Bank, the flood gates could be opened and both the ECJ as the ECB’s internal review panel will be flooded with applications to be withdrawn from the ECB’s direct supervision list.
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Apparently having 30B euro in assets is the threshold for getting ECB or national regulator's supervision. Ok then, get below the threshold. Find some construction that you can divide your assets over different entities and presto, no supervision. Good assets here, bad assets there and keep them separated.
Would this bank also refuse a QE bailout from the ECB (read, current and future European taxpayers)? That is what they would get if they were to be supervised I assume. Cause that is what this is all about. Bigger banks get into the ECB structure and small banks don't but the ECB's policies just like the FED's policies will be to favor big banks and to eliminate the small banks. Big banks get bailouts, small banks don't. Big banks will absorb other banks and become TBTF and TBTJ.
But they are right, stop feeding the giant squid. Cause ultimately it are the big banks that own the ECB (and charge interest to it). And own the rest of us.
You will have the crazy situation as with the FED where the FED goes to borrow money from the same institutions they need to bail out, either via loans or bonds. With interest of course. On the hook are current and future generations of tax payers.
Het ParadgimaConflict tussen de VRIJHEID en het KAPITAAL behelst natuurlijk dat bepaalde (rechts)personen meer kennis hebben over de 3e SpinozaGolf dan anderen.
Politici moeten een eed zweren op de psychosegelovige grondwetten en mogen niet discrimineren hoe banken het SCHULD=H00P-principe hanteren voor eigen gewin. Dus krijgen we 'de geregisseerde gebeurtenissen' dat commerciële banken aan MKB-bedrijven derivaten verkopen om zich te verzekeren tegen een rente-verhoging, terwijl de centrale banken al weten dat de rente negatief gaat worden. Dit past natuurlijk in het systeem 'Liegen om te Leven' waar de MACHT niet hun (voor)kennis mag delen met het gepeupel. In het GELD=ZUURSTOF-paradigma staat echter niet 'de intigriteit van de TopBankier' op een voetstuk, maar het principe van 'waarheiddelen'. De activiteiten in de 'echte economie' wordt in het systeem 'Leven en Laten Leven' gedefinieerd als 'het waarheiddelen tussen (rechts)personen, die wordt gestimuleerd door tegengestelde geldstromen'.
http://www.neurope.eu/article/g7-one-month-russia-rebuild-trust-or-else#...
Niet alleen de Grieken, Italianen en Fransen, maar ook menig minister van Financiën is nog niet op de hoogte hoe de ParadigmaCHANGE naar het systeem 'Leven en Laten Leven' zal plaatsvinden. De Eurogroepvoorzitter zei eind januari nog tegen de nieuwe Griekse regering dat het 'niet wijs is om gemaakte afspraken te negeren'. De Grieken wilden verlichting van het zware bezuinigings- en hervormingsprogramma en dat kan ook indien netwerk Juncker ineens het DAB-systeem gaat promoten. Dat Griekenland 'de miljardensteun' met rente moet terugbetalen past natuurlijk in de werking van het systeem 'Liegen om te Leven', maar niet in het systeem 'Leven en Laten Leven'. De bestuurders en commissarissen van ABN Amro willen echter onderdeel uitmaken van het systeem 'Leven en Laten Leven' en dachten wel aanspraak te mogen maken op een ton aan salarisverhoging. Die verhoging had te maken met de geheime deal met toenmalig minister Jan Kees de Jager dat de staatsbank zich moest voorbereiden, indien er sprake zou zijn van een ongecontroleerde paradigmawisseling. In die scenario zou alle banken ineens failliet worden verklaard en zou ABN-AMRO de contracten die nog wel relevant waren in het DAB-systeem moeten gaan beheren. Inmiddels zit die deal van @JCdeJAGER als 'een graat in de keel' van Eurogroep-voorzitter Jeroen Dijsselbloem. Nu de Grieken zich niet willen houden aan het script van netwerk Juncker moest de 'beursgang van de bank' worden uitgesteld. Natuurlijk mocht de 'graat-in-de-keel-uitspraak van de minister' niet worden geLINKed met de 3e SpinozaGolf en kwam 'de correspondentie op straat te liggen' dat netwerk @MinPres tevreden was dat 'de beloningskwestie was opgelost'.
Het ParadgimaConflict tussen de VRIJHEID en het KAPITAAL behelst natuurlijk dat bepaalde (rechts)personen meer kennis hebben over de 3e SpinozaGolf dan anderen.
Politici moeten een eed zweren op de psychosegelovige grondwetten en mogen niet discrimineren hoe banken het SCHULD=H00P-principe hanteren voor eigen gewin. Dus krijgen we 'de geregisseerde gebeurtenissen' dat commerciële banken aan MKB-bedrijven derivaten verkopen om zich te verzekeren tegen een rente-verhoging, terwijl de centrale banken al weten dat de rente negatief gaat worden. Dit past natuurlijk in het systeem 'Liegen om te Leven' waar de MACHT niet hun (voor)kennis mag delen met het gepeupel. In het GELD=ZUURSTOF-paradigma staat echter niet 'de intigriteit van de TopBankier' op een voetstuk, maar het principe van 'waarheiddelen'. De activiteiten in de 'echte economie' wordt in het systeem 'Leven en Laten Leven' gedefinieerd als 'het waarheiddelen tussen (rechts)personen, die wordt gestimuleerd door tegengestelde geldstromen'.
http://www.neurope.eu/article/g7-one-month-russia-rebuild-trust-or-else#...
Niet alleen de Grieken, Italianen en Fransen, maar ook menig minister van Financiën is nog niet op de hoogte hoe de ParadigmaCHANGE naar het systeem 'Leven en Laten Leven' zal plaatsvinden. De Eurogroepvoorzitter zei eind januari nog tegen de nieuwe Griekse regering dat het 'niet wijs is om gemaakte afspraken te negeren'. De Grieken wilden verlichting van het zware bezuinigings- en hervormingsprogramma en dat kan ook indien netwerk Juncker ineens het DAB-systeem gaat promoten. Dat Griekenland 'de miljardensteun' met rente moet terugbetalen past natuurlijk in de werking van het systeem 'Liegen om te Leven', maar niet in het systeem 'Leven en Laten Leven'. De bestuurders en commissarissen van ABN Amro willen echter onderdeel uitmaken van het systeem 'Leven en Laten Leven' en dachten wel aanspraak te mogen maken op een ton aan salarisverhoging. Die verhoging had te maken met de geheime deal met toenmalig minister Jan Kees de Jager dat de staatsbank zich moest voorbereiden, indien er sprake zou zijn van een ongecontroleerde paradigmawisseling. In die scenario zou alle banken ineens failliet worden verklaard en zou ABN-AMRO de contracten die nog wel relevant waren in het DAB-systeem moeten gaan beheren. Inmiddels zit die deal van @JCdeJAGER als 'een graat in de keel' van Eurogroep-voorzitter Jeroen Dijsselbloem. Nu de Grieken zich niet willen houden aan het script van netwerk Juncker moest de 'beursgang van de bank' worden uitgesteld. Natuurlijk mocht de 'graat-in-de-keel-uitspraak van de minister' niet worden geLINKed met de 3e SpinozaGolf en kwam 'de correspondentie op straat te liggen' dat netwerk @MinPres tevreden was dat 'de beloningskwestie was opgelost'.
What a joke of a lawsuit. The Empire does not care about the rule of law, and German officials have about as much power as the state government in Wisconsin. Germany only wields power in the sense that the cat (USA) controls what it does with its paws (Germany).
There is no way L Bank will be allowed to win this case. Nothing to see here, move along.
It is interesting that when a bank feels the heat of bureaucracy it decides to sue yet the little man has no choice but to comply with a million stupid regulations either as a private citizen or as a small business owner.
Anyone can sue and feed hungry lawyers
Hey, banks are people too! They just all fall somewhere in the Rothschild family tree.
G-O-L-D
B-I-T-C-O-I-N
I call bullshit. Google for "sue Federal Reserve"; apparently people sue the Fed all the time. Why should the ECB be any different?
I cannot recall the last time I saw any public figure exhibit a fully functioning moral compass.
Scott Walker
Ted Cruz
Allen West
That's Adam West.
Does their fully operational moral compass incorporate a neocon module to preclude the typical neocon penchant for bombing children, women and the elderly in every place tagged a locale for "terrorists"? Soon to come to a neighborhood near you? Are unruly school kids "terrorists" yet? Some are being manhandled by school pigs apparently. Are protesters, tea partygoers and l(L)ibertarians? Palette is getting pretty broad I gather.
For Mr. Cruz, Mr. Walker, all Bush's and the Clintons it doesn't.
all Republican...all future potential arrestees on pedophilia charges
There is panic and anger in the streets over this!
Oh wait, that's over whether people have to celebrate gay marriage with pizzas or go to jail.
Never mind.
Blood sucking parasites on blood sucking parasites, all the way to the bottom. Where is the wine, the new wine? We meant whine.
All that you need to see in this article is, "If the European Court of Justice sides with L-Bank......." A court with a judge(s) to be bought off. How easy that will be. No law or justice anymore.......... except to the highest bidder.
It is hilarious and sickening at the same time to think we are looking to some judge that use to be a lawyer for any kind of justice.
If the ECB would be facing an avalanche, then regardless of the law or the validity of the banks legal claims; it will be made an "example of" rather than seeing justice administered....for the good of the union.
The title is sensationalistic bullshit, nothing is falling apart in Doochland. A nothing bank filing a nothing suit.
Come to North Dakota. We have the only state owned bank in the nation: The Bank of North Dakota-BND. It is a relic of the early 1900's socialist government here in North Dakota. So is the state owned Mill and Elevator, a flour mill still operating in Grand Forks. Actually the BND does quite well by offering participations to local banks on higher risk credits, processing the state employee payroll and investing various funds including pension plans and oil extraction taxes. It's a bit quaint in this day and age but even the right wingers like it.
It is not answerable to the Federal Reserve.
Exactly, and surely this is a true model of how to arrange our banking factilities both here in UK and USA. It looks like Iceland is going for it too with their 110 page report on bank reforms.
http://www.zerohedge.com/news/2015-04-01/iceland-stuns-banks-plans-take-...
http://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CC...
From the Telegraph UK:
"Iceland's government is considering a revolutionary monetary proposal - removing the power of commercial banks to create money and handing it to the central bank. The proposal, which would be a turnaround in the history of modern finance, was part of a report written by a lawmaker from the ruling centrist Progress Party, Frosti Sigurjonsson, entitled "A better monetary system for Iceland".
"The findings will be an important contribution to the upcoming discussion, here and elsewhere, on money creation and monetary policy," Prime Minister Sigmundur David Gunnlaugsson said. The report, commissioned by the premier, is aimed at putting an end to a monetary system in place through a slew of financial crises, including the latest one in 2008.
According to a study by four central bankers, the country has had "over 20 instances of financial crises of different types" since 1875, with "six serious multiple financial crisis episodes occurring every 15 years on average". Mr Sigurjonsson said the problem each time arose from ballooning credit during a strong economic cycle."
Does it practice fraudulent-reserve banking?
Then it is just a criminal as the rest.
The banksters need to repay us.
Does it use SWIFT?
Good luck being truly independent then.
That bank doesn't seem very socialistic if you ask me. No derivatives or anything.
"L-Bank says it doesn’t belong on the ECB’s watch list as for instance the region of Baden-Wurttemberg is providing a direct guarantee."
I wonder how the taxpayers feel about that?
I wonder if they even know about that?
the taxpayers feel great about getting low interest loans for business or real estate.
They know about it and as citizens of Baden Würtemberg are heavily invested in the well being of their provincial bank.
Here is where the EU fails to make material changes and the EU itself cannot progress above and beyond what it is.
The EURO is failed.
Seriously, L-Bank expects that the European Court of (hahaha) Justice to rule that it should have a national (as opposed to ECB) supervisor?
all the more reason to press the suit. there are plenty of other smaller banks waiting in the wings and it's good publicity. Fuck the ECB.
Try to have a paid off house or country estate prior to the collapse.
After the collapse those who get placed into cities will be stuck in the cities on the government dole forevermore.
Make the sheep embrace their shoeboxes. Assure them over and over that "densification" is "Green" and "sustainable" and "livable." REDEVELOPMENT AND AGENDA 21
"....in the cities on the government dole forevermore".
All paid by your property tax.
That's the idea. To have a proletariat, first you need proles....
everything is so so so complex. burn it all down.
If you make something complex enough, you can get away with anything.....
When it is too simple; no one believes it. Human nature "to want what you cannot or should not have and not to want what you already have". It is why we see so much immorality such as cheating on a spouse or just plain lying and justifying it.