Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Posts Tagged ‘TBTF’

Großbanken fusionieren? Großbanken entflechten!

Posted by hkarner - 10. Oktober 2016

Finanzsystem | 07.10.2016 
Von Andreas Nölke, Makroskop

Die Turbulenzen um die Deutsche Bank sollten uns daran erinnern, dass die Größe, Vernetzung und Komplexität einiger deutscher Banken zu einer massiven Einschränkung unserer demokratischen Selbstbestimmung führen. Eine staatliche Rettungsaktion muss daher zwingend mit einer Entflechtung dieser Großbanken verbunden sein.

In diesen Tagen ist viel über den Aktienkurs und die finanzielle Stabilität der Deutschen Bank zu lesen, bis hin zur Möglichkeit einer weiteren staatlichen Intervention. Makroskop hatte bereits früh auf die in der Deutschen Bank schlummernden Risiken (hier) und auf deren problematisches Managementsystem (hier) hingewiesen. Ich möchte nun die aktuelle Diskussion nutzen, um auf ein grundsätzlicheres Problem hinzuweisen. Dieses grundsätzliche Problem besteht aus der massiven Einschränkung unserer demokratischen Selbstbestimmung durch stark miteinander verflochtene und in sehr komplexe Transaktionen involvierte Großbanken (eine ausführlichere Diskussion findet sich in meinem Beitrag zu diesem Band).

Demokratische Selbstbestimmung bedeutet die Beteiligung der Bürger an der Entscheidungsfindung durch demokratische Verfahren (Input) und die Möglichkeit einer wirksamen Umsetzung dieser Entscheidungen (Output). Beide Anforderungen werden durch die Existenz von Institutionen wie der Deutschen Bank verletzt. Im Vordergrund steht dabei nicht nur ihre Größe, sondern auch ihre Vernetzung und Komplexität. Den Rest des Beitrags lesen »

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Bundesbank: Größe einer Bank ist kein Garant fürs Überleben

Posted by hkarner - 28. September 2016

Deutsche Wirtschafts Nachrichten  | 

Die Bundesbank hat sich, ohne die Deutsche Bank beim Namen zu nennen, distanziert zur Rettung von Banken geäußert: Größe sei kein Garant für das Überleben, sagte Bundesbank-Vorstand Dombret. Ob diese Aussage auch für sogenannte systemrelevanten Banken gilt, sagte Dombret nicht.

Angesichts der anhaltenden Nullzinspolitik der EZB müssen aus Sicht von Bundesbank-Vorstand Andreas Dombret auch große Geldhäuser mehr für ihre Zukunft tun. „Weder ist die Größe einer einzelnen Bank ein Garant für ihr Überleben, noch kann die Größe des Sektors insgesamt vor Krisen schützen“, sagte er am Dienstag laut Redetext in Wien. In Deutschland ist die ultralockere Geldpolitik der Europäischen Zentralbank (EZB) hoch umstritten. Banken kritisieren, dass es ihnen wegen der niedrigen Zinsen zusehends schwer fällt, im angestammten Kreditgeschäft auskömmliche Margen zu erzielen. Deutsche Bank-Chef John Cryan hat EZB-Präsident Mario Draghi, der am Mittwoch im Bundestag erwartet wird, zum Umsteuern aufgefordert. Den Rest des Beitrags lesen »

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The Case For A Super Glass-Steagall

Posted by hkarner - 6. Juni 2016

How true!!! Worth reading !!! (hfk)


By David Stockman, June 4, 2016Stockman

Donald Trump can instantly get to the left of Hillary with respect to Wall Street and the one percenters by embracing Super Glass-Steagall.

The latter would cap U.S. banks at $180 billion in assets (<1% of GDP) if they wished to have access to the Fed’s discount window and have their deposits backed by FDIC insurance. Such Federally privileged institutions would also be prohibited from engaging in trading, underwriting, investment banking, private equity, hedge funds, derivatives and other activities outside of deposit taking and lending.

Instead, these latter inherently risky economic functions would be performed on the free market by at-risk banks and financial services companies. The latter could never get too big to fail or to manage because the market would stop them first or they would be disciplined by the fail-safe institution of bankruptcy. No taxpayer would ever be put in harms’ way of trades like those of the London Whale.

By embracing this kind of Super Glass-Steagall Trump would consolidate his base in the flyover zones and reel in some of the Bernie Sanders throng, too. The latter will never forgive Clinton for her Goldman Sachs speech whoring. And that’s to say nothing of her full-throated support for the 2008 bank bailouts and the Fed’s subsequent giant gifts of QE and ZIRP to the Wall Street gamblers. Den Rest des Beitrags lesen »

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Regulators Warn 5 Top Banks They Are Still Too Big to Fail

Posted by hkarner - 15. April 2016

Date: 14-04-2016
Source: The New York Times

The nation’s top bank regulators have added an unexpected voice to the growing
chorus of critics worried that the biggest American banks, nearly eight years after the financial crisis, are still too big to fail.

The Federal Reserve and the Federal Deposit Insurance Corporation said on Wednesday that five of the nation’s eight largest banks — including JPMorgan Chase and Bank of America — did not have “credible” plans for how they would wind themselves down in a crisis without sowing panic.

That suggests that if there were another crisis today, the government would need to prop up the largest banks if it wanted to avoid financial chaos.

The announcement coincides with a presidential campaign that at times has been dominated by a debate over what danger the big banks still pose to the nation’s economic security. Senator Bernie Sanders of Vermont has called for the biggest banks to be broken up, a stand that his opponent, the front-runner for the Democratic presidential nomination, Hillary Clinton, has criticized. Den Rest des Beitrags lesen »

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Wow! Minneapolis Fed commits to END “Too Big to Fail” Banks

Posted by hkarner - 31. März 2016

Posted on by Carl Herman, washingtonsblog

Fed link; their call to end TBTF:

Seven years after the biggest financial crisis since the Great Depression, the biggest banks are still too big to fail (TBTF). Without action, they continue to pose a serious, ongoing risk to our nation’s economy. It’s time to seriously consider bold and transformational solutions to address TBTF once and for all. The Federal Reserve Bank of Minneapolis is launching a major initiative to develop a plan to end TBTF and prevent similar economic devastation from hurting the American people.

My response sent this morning:

Dear Fed member,

Thank you for your call to end TBTF. This is my March 2016 article, amended/revised from my 2015 Claremont Colleges paper delivered at their international “Seizing an Alternative” conference. Both of the above linked articles contain short illustrative videos.

Care to communicate your best shot to help? Go here.

Is this evidence of minions of .01% banksters taking the side of We the People? Den Rest des Beitrags lesen »

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The End of Big Banks

Posted by hkarner - 29. Februar 2016

Photo of Simon Johnson

Simon Johnson

Simon Johnson, a former chief economist of the IMF, is a professor at MIT Sloan, a senior fellow at the Peterson Institute for International Economics, and co-founder of a leading economics blog, The Baseline Scenario. He is the co-author, with James Kwak, of White House Burning: The Founding Fathers, Our National Debt, and Why It Matters to You.

FEB 29, 2016, Project Syndicate

WASHINGTON, DC – After nearly a decade of crisis, bailout, and reform in the United States and the European Union, the financial system – both in those countries and globally – is remarkably similar to the one we had in 2006. Many financial reforms have been attempted since 2010, but the overall effects have been limited. Some big banks have struggled, but others have risen to take their place. Both before the 2008 global financial crisis and today, just over a dozen big banks dominate the world’s financial landscape. And yet the ground is shifting beneath the financial sector, and big banks could soon become a thing of the past. Den Rest des Beitrags lesen »

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A Crisis Worse than ISIS? Bail-Ins Begin

Posted by hkarner - 30. Dezember 2015

Posted on by Ellen Brown, Web of DebtBrown Ellen

While the mainstream media focus on ISIS extremists, a threat that has gone virtually unreported is that your life savings could be wiped out in a massive derivatives collapse. Bank bail-ins have begun in Europe, and the infrastructure is in place in the US.  Poverty also kills.

At the end of November, an Italian pensioner hanged himself after his entire €100,000 savings were confiscated in a bank “rescue” scheme. He left a suicide note blaming the bank, where he had been a customer for 50 years and had invested in bank-issued bonds. But he might better have blamed the EU and the G20’s Financial Stability Board, which have imposed an “Orderly Resolution” regime that keeps insolvent banks afloat by confiscating the savings of investors and depositors. Some 130,000 shareholders and junior bond holders suffered losses in the “rescue.”

The pensioner’s bank was one of four small regional banks that had been put under special administration over the past two years. The €3.6 billion ($3.83 billion) rescue plan launched by the Italian government uses a newly-formed National Resolution Fund, which is fed by the country’s healthy banks. But before the fund can be tapped, losses must be imposed on investors; and in January, EU rules will require that they also be imposed on depositors. According to a December 10th article on BBC.com: Den Rest des Beitrags lesen »

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In Defence Of Greek Banks

Posted by hkarner - 19. November 2015

Wednesday, November 18, 2015, observing greeceKastner

As of today, the four large Greek banks are bankrupt. A bank is not bankrupt when it is solvent and liquid. Solvency means that the bank has sufficient equity (capital) and liquidity means that it can exist without last-resort funding. The ECB has ascertained that the Greek banks have a capital shortfall of about 4 BEUR as of now, which shortfall might increase to 14,4 BEUR if macroeconomic conditions deteriorate. And as regards liquidity, the Greek banks would cease to exist if they could not rely on emergency funding from the ECB. Thus, bankrupt on both counts.

When a bank is bankrupt but not closed down, i. e. when it is bailed out, the standard procedure of the new owners, i. e. the ‚bail-out’ers‘ (typically an official body), is to replace the management and supervisory boards. After all, if they ran the bank into the ground, how could they be allowed to stay on. That assessment, however, depends on whether the bank was literally run into the ground or whether it failed for other reasons. Perhaps force majeure reasons. Den Rest des Beitrags lesen »

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Aus der Geschichte nichts gelernt: Wirtschaftsprüfer sind unregulierbar

Posted by hkarner - 31. August 2015

Nur vier Wirtschaftsprüfer weltweit haben die Kapazitäten auch die großen, internationalen Unternehmen zu prüfen. Experten sprechen von einem „faustischen Pakt“: Sollte einer der vier Anbieter vom Markt verschwinden, würde die Qualität drastisch sinken. Wie schon bei den Banken ist die Macht der Wirtschaftsprüfer mittlerweile zu groß, um reguliert zu werden.

Die vier großen Wirtschaftsprüfungs-Unternehmen nehmen immer öfter die Beratung und die Prüfung von Kunden gleichzeitig vor: Die Gefahr wächst, dass die Prüfungs-Qualität durch so entstehende Interessenkonflikte leidet. PwC, Deloitte, EY und KPMG haben sich von reinen Wirtschaftsprüfern zu Dienstleistern entwickelt, deren Hauptfokus nicht mehr auf der Prüfung, sondern auf der Beratung von Unternehmen in allen Bereichen liegt, so ein Bericht der FT.

Wenn die Prüfer jedoch von Rechtsberatung über Insolvenzbegleitung und Kapitalmarkt- und Cybersicherheitsberatung einfach alles anbieten, werden Interessenkonflikte unvermeidbar: Wer eine Firma trickreich bei der Unternehmensführung und bei der Erstellung der Bilanzen berät, der kann nicht gleichzeitig deren Bilanzen unabhängig prüfen. Noch komplexer wird der Interessenkonflikt, wenn die gleiche Firma, die als Berater eine Insolvenz abwenden soll, von einer eben solchen Insolvenz profitieren könnte. Den Rest des Beitrags lesen »

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Bank separation is essential for banking competition and the economy, the time for indefinite bank subsidies is over

Posted by hkarner - 17. August 2013

Date published: 8 April 2013

Press release


Brussels, 8 April 2013 – Finance Watch, the public interest association, today published a policy note “The importance of being separated – Making the public interest sovereign over banks” on the benefits of separating trading from lending activities among Europe’s largest universal banks.

Finance Watch calls on policymakers to ignore misleading claims that “we have done enough bank reform already” or that “separation would hurt the real economy”. These and other myths are addressed in the document and comprehensively debunked. The document explains why bank separation is vital if the EU’s other bank reforms are to be coherent and protect the public.

Key points include:

  • Today’s banking market is distorted by funding subsidies which harm competition in the banking market and discourage banks from serving the wider economy as they should.
  • Existing bank reform proposals do not stop banks from being too-big-to-fail and will not protect the general public from future banking crises.
  • The separation of banking activities is a critical step in restoring both Europe’s banking sector and economy to health. Den Rest des Beitrags lesen »

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