Mexico Orders Banks To "Stress Test" For A Trump Victory

Tyler Durden's picture

It's official: Donald Trump is now a systemic threat.

As part of the Mexican stress test, alongside more traditional calamities such as recession, economic crisis, and market crash, the Mexican financial authorities have ordered local banks to assess the potential impact of Donald Trump winning the U.S. presidential election, Reuters reports. Citing six bank sources, Reuters says that alongside a "normal" annual stress test, the banks were asked to conduct an additional test to examine the macroeconomic effects and volatility resulting from a potential Trump victory on Nov. 8.

The local regulator, the Financial System Stability Board (CESF) said that as a result of the ongoing risk surrounding the U.S. election and an expected tightening in Federal Reserve monetary policy, it had examined the results of stress tests of the country's financial system. "These exercises showed that the banking sector maintains adequate levels of capital and liquidity to face adverse scenarios," the CESF, which includes representatives from the Finance Ministry, the Bank of Mexico and the banking regulator CNBV, said in its statement.

However, while the rest of the stress test is largely fluff, what Mexico really wanted to know is what happens to local banks if Trump becomes president in 19 days: as a result the tests "were specifically aimed at modeling the possible impact of a Trump victory over Democratic candidate Hillary Clinton, the latest example of the panic the Republican candidates campaign has induced in Mexico."

Among other things, Trump has vowed to rewrite the North American Free Trade Agreement if he wins, and build a southern border wall that Mexico would pay for. Fears that Trump could take the White House have also weighed on the peso which is down nearly 8 percent so far this year.  Trump was in Mexico City briefly in August for a highly contentious visit that led to widespread criticism of Mexican President Enrique Pena Nieto and helped precipitate the resignation of then finance minister Luis Videgaray, who was seen as the architect of the meeting.

Still, Mexico is far less nervous than it was just a month ago: one of the banking sources told Reuters that Trump's recent collapse in the polls following a string of groping accusations had helped calm concerns that he might win. Of course, the reason why S&P futures traded limit down on the night of Brexit is because just like now, the outcome was taken for granted by all involved, with virtually all polls guaranteeing the preferable outcome.

It remains to be seen if Trump can repeat the Brexit shock.

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Stu Elsample's picture

Better order those bricks for the wall..... we'll send the low wage bricklayers back to ya

nuubee's picture

Technically we could build the wall with robots, which I honestly would recommend.

Squid Viscous's picture

mexicans are cheaper, throw them a couple heavy peso coins and some of their own shit beer, see you manana!

gmrpeabody's picture

The Mexicans have been so hosed over by their own government...,

Christ.., if they put half as much effort into cleaning up their own country as they do  to putting down America, they might even make a difference.

But don't hold your breath...

toro's picture

Hopefully, Trump will bring down the Pyramid of Power & the New World Order. http://bit.ly/24kSZbl

philipat's picture

Hey Toro, previously known as mofio then santafe then Aristotle of Greece then Gargoyle then bleu then oops then lance-a-lot then most recently Loftie.

You are a serial spammer and a serial pain in the ass. Might I politely suggest that you go fuck yourself? And get a life.

PS. You might have noticed that my attempt to expose you for what you are is always the same. That’s because your Spam is always the same (Using fake links to your BS site which has no connection to your comments, which are deliberately dramatic to encourage people to click on the fake link) so it seems only fair that my exposure of your crap should also always be the same. An eye for an eye.

 

HardAssets's picture

The corrupt oligarchy in Mexico has been using El Norte as a safety valve against revolution from the people for a very long time. "Life might be horrible and corrupt, but at least you can go north & make money to send back to your family."

As Hugo Salinas Price said - The Mexican people are long suffering. There is no Tea Party movement in Mexico.

Isn't it about time ?

cbxer55's picture

I don't know about all Mexican beer, but I happen to like Modelo quite a bit. Especially the darker version, Negra Modelo.

Stu Elsample's picture

...or we could line the border with hunters and pay them a bounty of $1000 for each invader they nail (cheaper than a life of welfare for the dead invader)

abyssinian's picture

Mexicans don't stress! What stress test? lol 

abyssinian's picture

Mexicans don't stress! What stress test? lol 

Stroke's picture

"We done need no stinkin' stress tess"

MFL5591's picture

Whatever the global criminals can do to scare the public!

Squid Viscous's picture

better start figuring out how to pay for the wall, beaners!

 

King Tut's picture
King Tut (not verified) Squid Viscous Oct 19, 2016 9:52 PM

Mexico can raise revenue by raising taxes on the SoCal douchebags' mojitos in Cabo San Lucas

WillyGroper's picture

better focus would be how we're going to pay for anything.

webbot...very interesting.  https://youtu.be/BC85wkVFgh4

nonclaim's picture

Who could have thought that the black swan would actually be white... and with bad hair.

Proofreder's picture

THIS JUST IN ...

Twitter accounts in the UK are reporting that as many as a dozen security vans and cars are in front of the Ecuador Embassy in London where Julian Assange has been living for four years.  

Is Assage Dead ???  Or extradited ??  Or disappeared ?

nmewn's picture

Cheer up Mexico, read HuffPo...lmao!!!

RawPawg's picture

Just Corner The Taco Market...USA Weakness
There,I fixed It For Ya.

coast's picture

sorry somewhqt off topic, but I have a question, that many others might be interested in also...So, I have money coming late november from a property sale. I hope this shit doesnt collapse until at least end of year, but, I have 10k in credit card debt, and I could pay it all off...But I was thinking, maybe I wont pay it off?  I feel stronger about paying off a mortgage if ya can, cause its where you rest your head at night..but credit card debt?  why pay it off?  when things collapse, what are they gonna do?  anyway, thoughts are appreciated. I ask on ZH because most of you are pretty darn smart.

Stu Elsample's picture

I owe the bank far more than what's in the account...I'm covered.

Escrava Isaura's picture

Save the capital, you might have to move.

 

cowdiddly's picture

Pay the mort. and get the title in hand, You can set up a equity line if needed for some undue emergency,

then in case of neg rates and homeowners premiums start escalating through the roof you have the option of not buying and taking the risk until they come back to earth.

Credit card is unsecured debt and not paying it just dings your credit and to fix it you can go back and pay later in worst case.

Losing your equity in a house is rough if its substantial and then you will still have to rent or live in your car.

Just stop using the card though and make sure the balance always comes down till you can knock it out.

And some would suggest paying the highest interest credit first. It really depends on if you can completely knock out the morgage and how secure your work is. Just my 2 centavos

coast's picture

I dont have a mortgage, and I dont care about my credit rating.. I already have a property and live off grid, solar panels, water catchment , stored food and plenty of room to grow more...I was just wondering what reprocussions might be if I said screw the credit cards and buy 10k in  1/4 ounces of minted silver...or, just make the minimum monthly payments...I just feels good having no debt ya know?  Altho, I will never see my social security probably in 3 years, fuck the banksters?   I think I made up my mind, pay the minumum due, but instead of paying off totally, buy silver...ok then

cowdiddly's picture

OIC. pay the credit cards off first unless you plan on sticking it to them. The interest on 10k will probably cost you the equivalent of several ounces of silver every month on 10k until its payed off. But you can go slow and start buying a few coins/ bars every month or when you win a football bet or something and build up while getting rid of the card.

Most credit card interest is compounded daily. Here is the formula to compute how much the interest on card cost:

10,000 X the (%interest rate of the card) and divide by 360 days a year gives you the daily interest accrued.

Then multiply that daily rate number by 30 days in the month and that gives you what the monthly interest will be added to the card every month.

I know there is 365days in a year and 31 days some months but this is what the banks/accountants all use.

Hope that helps you

Escrava Isaura's picture

If you can collect SS in three years, keep contributing and screw the CC.

Expanding your food source or silver?

That’s a no brainer, expand your food source.

 

willwork4food's picture

That's an excellent question. I'm in the same boat as it were. I have good credit so I want to keep it that way as much as possible. Mortage payments, car/truck payments are 1st priority, credit card debt is unsecured debt which is why they charge you high interest. Not so high a priority. I have been paying the higher CC debt loans down but charging a LOT for silver, tools, emergency food storage etc. That is more important at this point in time then saving a few dollars per annum on interest. I want the the physical-which in mho will only increase in value especially if Trump gets in the WH or/and they raise the rates again. Again this is conjecture, I could be wrong, but I think it's far more important to protect your home and work with actually THINGS that can help you survive in case there is a major economic problem down the road. At this rate whoever wins the election the shit's gonna hit the fan fairly soon. This year? 2017? I don't know. I DO KNOW the global economic problems are systemic and could break loose any time, so be prepared. They didn't tell you 1929 was going to happen, until it did.

Mustafa Kemal's picture

There may be other reasons than Trumpophobia.  Its possible if Trump wins or looks like he may win that TPTB may drop the stock market and/or DB. A stress test for such a case would be reasonable for the USSA also.

Boca's picture

why are they worried, hildabeast is up by like 14 pts, or so the polls say

drstrangelove73's picture

It do make you wonder,don't it?

Yars Revenge's picture

Here's hoping Mexico's banks encounter severe turbulence on Nov 8th

runswithscissors's picture

Is the stress test akin to pulling the heroin needle out of the junkie's arm?

Lord Ariok's picture

To all my fellow Zerohedgers. IF you want out of the markets or any capital asset, even an entire stock portfolio, real estate, anything up to $4,999,999. I have access to the only lender in the nation that will lend against an installment contract, coupled together with 3 long term escrows and an SBLC for a lump sum of 93.5% of the total sales price to defer capital gains tax for 30 years. It is a 0% interest loan for 30 years. This not a 1031 exchange or deferred sales trust. If you see the writing on the wall I have 100% legal way to deffer capital gains. email me at themoneyguild at gmail.com. It is a 1912 pre creation of the Federal Reserve tax loophole. Minimum is $500k or its not worth our time. 

Lord ArioK

Proofreder's picture

Here's the thing ...

NO ONE KNOWS HOW YOU VOTED WHEN YOU LEAVE THE VOTING BOOTH !

That fact alone probably adds 8 to 10 points to the expected Trump Vote.

Secret Ballot

CHoward's picture

Smart move Mexico - you better start figuring out where that money is going to come from to pay for Trump's Wall!

Oh yeah and another thing.  I hope all the markets crash in November - whether it's because of a Trump win or not - that way at least it's on Obama's watch.  By the time he's sworn in in January - the Wizards of Id will have fixed everything - kinda like last time.

peippe's picture

Wall Bonds.

Class A & B.

 

g'kar's picture

Time to tax the $120+ billion sent out of the the country by immigrants every year at a 95% tax rate...over $20 billion of that is to mexico...viva la revolution

 

http://www.washingtontimes.com/news/2013/jan/31/immigrants-us-sending-12...

Spungo's picture

You know your bank is a pile of shit when an election renders it insolvent.
Half of the people posting here could lose their job and still remain solvent. How's that for a stress test.

General Titus's picture

Soon after Clinton signed the hated NAFTA, his sec of the Treasury, Robert Rubin (from the scumbags at Goldman Sachs) bailed out the Mexican Peso!

Yen Cross's picture

   Is this some kind of joke????

 Halloween doesn't seem so FESTIVUS, this year.  It's those minimum wage increases?

   Paging ' Moonbeam'? 

Farqued Up's picture

Halloween can't seem FESTIVUS when we have a real, live, broom riding, sputum barfing, bitch-witch glaring at us from the tube 24/7.

RattieNomNom's picture

Oh yeah! Everyone is going down when ponzi-dollar-debt implodes!!

Shlomo Schwartzman's picture
Shlomo Schwartzman (not verified) Oct 20, 2016 2:34 AM

Haifa orders Mexican branch to stress test against Trump victory