"And Now For Something Completely Different"

Tyler Durden's picture

With everyone focusing on China, oil and the dollar, here is BMO's Mark Steele taking a loot at something few are concerned about so far. That will change shortly.

And Now For Something Completely Different

Typically, when banks look as awful as they do, and believe us they do look awful, we focus on the credit default swaps on the FSA’s too-interconnected-to fail list. But your portfolio is broader than that, so today we will expand to show banks with a CDS over 100bps, and we sorted it by its degree of short term freakedoutity


Leading the pack is the Italian SIFI (Figure 2, and looking forward to hearing if you are still taking the stance of the Buba on Thursday Mr. Draghi), followed by another Italian, another Italian, and another Italian.

A German SIFI then…eventually you get to Morgan Stanly and Citibank.

So let’s just say that if you are focused on domestic North American issues…you are missing the point.

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38BWD22's picture



Here's some other news that's completely different:

"ISIS Destroys Oldest Christian Monastery in Iraq"


(Right after bombing the Russian Embassy in Kabul)

JRobby's picture

Wowee! You got to be second!

MasterControl's picture

Here at zero Jew they rejoice when christains (and Jews) are killed.
That is why they are thumbing you down. 

NidStyles's picture


bigkahuna's picture

I am going to take a loot at this.

hoosiertoo's picture

Threads stay on topic? When did that start?

Tejano's picture

Someday. Maybe. No, probably not. All over the fuckin' place.

ArtHand7's picture

If any discussion here on Zerohedge goes offtopic?

Well that is cool with me for one... 

Second is the article title 'Now something different'?

Monty Python! Yay!

So... That is mine own offtopic comment;-()

zeronetwork's picture

ISIS does exactly what they are told. Burning monastery for what? To create anger against Muslims and not against bankers. Wake up guys.

DeathMerchant's picture

I think they come up with their own shit. I will agree however that they have some passive support as well as a few billion dollars worth of military hardware thrown in.

Fester's picture

Why do you believe the banks data.  They lie.  It's much worse.

Mr. Universe's picture

Here is what Zbigniew Brzezinski, David Rockefeller’s chief butler, and Obama’s foreign policy mentor, wrote on that subject in 1969:

“The nation state as a fundamental unit of man’s organized life has ceased to be the principal creative force: International banks and multinational corporations are acting and planning in terms that are far in advance of the political concepts of the nation-state.”

12357111317's picture

Translation:  "I and my clients who own the international banks and multinational corporations are a separate, superior species, and it is our destiny to enslave homo sapiens.  Their nations cannot protect them.  They call themselves 'we, the people' but they are now 'you, our slaves'."

Bernoulli's picture

Interesting to see Deutsche Bank pretty high up there in the table...

Derivatives, hello?


JRobby's picture

Credit default swaps on the FSA’s too-interconnected-to fail list

It is a house of cards and the wind is rising

Insufficient counterparty liquidity is likely massive

Question? If the Fed & CB's buy worthless debt, has it defaulted?

Manthong's picture

That’s why God invented the Heidelberg.

Mr. Schmilkies's picture

did you mean Heisenberg uncertainty principle?

VAD's picture

Yes, that's a default.

azusgm's picture

The Italian banks may be able to blow up without taking the eurodollar with them.

IMO if DB goes, the euro currency goes.

roguetrader's picture

italian ftsemib -5%...

Bernoulli's picture

-16.5% YTD...

Porca miseria...

gatorengineer's picture

strain is starting to show.... not stress yet, needs another 500 basis points for it to equal stress.

Dame Ednas Possum's picture

Strain is a response to stress.

It's a material property.

TAALR Swift's picture

"And now, for something completely different..."

Master Durden, I was expecting a Monty Python skit. I want my money back. And an Argument.

buzzsaw99's picture

good luck in ever collecting on those cds thingies

Arnold's picture

Now a Ferarri with a new account.

Heck I'll settle for a Fiat.

Chuckster's picture

The thing is the world is looking for China or the US to pull the world out of a nosedive.  What goes on in Europe is of no concern.

DeathMerchant's picture

Europe deserves everything it is getting. The entire world does need to see the massive liberal experiment for what it is.

deKevelioc's picture

After FASB 157 (with equivalent fraudulent accounting in Europe), can anyone ever discuss a bank balance sheet with a straight face?

Thought Processor's picture

"After FASB 157, can anyone ever discuss a bank balance sheet with a straight face?"


This.  The whole market is a farce at this piont.

walküre's picture

Bring back da Lira!

PTR's picture

And the paseta.  I have some from that 90's vacation I never used.

Seek_Truth's picture

Do you think you could recognize a larch tree?

Libertati Aut Ad Mortem's picture
Libertati Aut Ad Mortem (not verified) Jan 20, 2016 11:41 AM

World banks are performing poorly, some of the regional oil service banks are in poor shape, but Wall Street is doing just fine, net chargeoffs are at record lows, the oil exposure is over emphasized, consumer debt is being paid since the reduction in oil and the Fed is now paying the banks, smoke and mirrors, smoke and mirrors


Sandmann's picture

Who are the accountants ?  Arthur andersen is dead so whose is left for this cycle ?

Kefeer's picture

Print more money and be done with it; who will know?

Strelnikov's picture

That does it.  I'm transferring all my cash to Sberbank.  (In English, "Burbank".)