Bonuses back As Big Banks make Billions

nearlynew

This used to be my signature and is very appropriate here.............

"Banking was conceived in iniquity and was born in sin. The bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money."
Josiah Stamp, former governor of the Bnak of england

chucky

bubblesmoney wrote: »

making billions of profit on paper accounting is vastly different from actual profits. wont be the last or the first time that sort of thing happened.

just last year didnt lehman in the last quarter before they went bust declared 'assets' showing networth in the billions on paper when in reality it was a pile of sh1te signed off by accountants and the bank. why shouldnt something similar be the reality for the other big 'investment' banks especially considering mark to model 'assets', level 2 or 3 assets on bank books.

see more on the link

so Barclays and GSBC didn't really make that much profit and it was all a cover up?

are you able to tell us what actually happened to these profits without linking to an article from some random blog?

Thrugelmir

1984ReturnsForReal wrote: »

I would love to see the full accounts of Barclays & HSBC for the last 3 years.

Looks to me as if they have just called in the overdrafts & loans.

Recapitalised in the Far East & payments arent due yet.

Calling in loans and overdrafts would reduce profits. So not sure how that would help thewir results.

HSBC absorbed a huge loss in the US retail sector though.

1984ReturnsForReal_2

Thrugelmir wrote: »

Calling in loans and overdrafts would reduce profits. So not sure how that would help thewir results.QUOTE]


Short term it would increase paper profits depending how the original interest over loan period is calculated.

CLAPTON

the profit and loss a/c for any business depends upon the valuation you put on assets.
if you 'over' value then you can inflate your profit; if you give them a conservative (i.e. low) value then your profit can easily become a loss.

In these uncertain times who can give an 'real' value to their assets

Last year for example HSBC 'wrote off' quite a lot of their asset value in their US Household operation. They have now written off more ...so they got it 'wrong' last tear so why believe them this year?

1984ReturnsForReal_2

CLAPTON wrote: »

Last year for example HSBC 'wrote off' quite a lot of their asset value in their US Household operation. They have now written off more ...so they got it 'wrong' last tear so why believe them this year?

Thats how I feel about Barclays.

I wonder who is selling Barclays shares???

Thrugelmir

1984ReturnsForReal wrote: »

Thrugelmir wrote: »

Calling in loans and overdrafts would reduce profits. So not sure how that would help thewir results.QUOTE]


Short term it would increase paper profits depending how the original interest over loan period is calculated.

Banks only make a margin between cost of money and rate lent at (less deductions overheads, dividends, tax etc).

Reducing assets reduces profitability.

1984ReturnsForReal_2

Thrugelmir wrote: »

1984ReturnsForReal wrote: »

Banks only make a margin between cost of money and rate lent at (less deductions overheads, dividends, tax etc).

Reducing assets reduces profitability.

I know how to conventionally work out profit. But this isnt conventional.

What they have done is increase the "set up" charges at both ends & called in business loans & overdrafts that they had previously "written off".

Also refinancing in the Middle East in 2008 at longer lower rates than previously borrowed. APRs private/business loans remain the same & subsequently borrowed money on these loans at lower rates increases profitability.

You call in the loans/overdrafts & calculate the expenditure on the refinanced rates. Its instant profit from nowhere.

Its a bullsh*te paper calculation to get the share price up because someone wants out, some of their money back or less of a risk.