Bailout II - The Return of the Insolvent

Generali

Looks like Commerzbank is about to be bailed out by the German Government again. The Govt paid EUR18,200,000,000 for a 25% stake in Commerzbank in 2008. That stake is currently worth in the region of EUR2,000,000,000, an unrealised loss to the German taxpayer of EUR16,200,000,000. It is worth noting that the current valuation on the German Government's stake is entirely dependant on the assumption that they will continue to bail out the bank at any cost. Without that the shares would be worth EUR0 or thereabouts.

The new bailout is rumoured to be in the region of EUR5,000,000,000 and instead of getting worthless bank shares for their money, this time around the German taxpayer will be getting nice shiny bonds issued by Greece, Portugal etc.

It also seems likely that a similar deal will be struck for Deutsche Bank.

michaels

And RBS and Lloyds?

And I thought the German banks only neded to raise a small amount of capital, much less than their European peers?

Aberdeenangarse

michaels wrote: »

And RBS and Lloyds?

And I thought the German banks only neded to raise a small amount of capital, much less than their European peers?

I think they're all in the s.....hit :eek:

Thrugelmir

michaels wrote: »

And I thought the German banks only neded to raise a small amount of capital, much less than their European peers?

In the current financial climate a billion or two sounds a very small number.

Though seems harder and harder to raise the funds.

Road_Hog

Generali wrote: »

Looks like Commerzbank is about to be bailed out by the German Government again.

I do like their chief economist Joerg Kraemer, a very honest chap. I remember Radio 5 Live (BBC) interviewing him a year or two ago about the Euro crisis. And he was straight up, he told the Beeboids that the Euro was meant to be a political union not a fiscal/financial union.

No beating about the bush, trying to pretend it was anything else, came straight out and said that they (EU) had done it the wrong way around and that the political union should have been formed first and then the Euro and that a political union/federal Europe was the only logical outcome to sort it.

You could hear the Beeboids frothing, saying to themselves, you can't tell the British public that, you must lie to them and pretend it is something far less innocuous. If you tell them, then they might get angry about it and realise what they are sleep walking into.

Every time they tried to steer it away from a federal Europe, Kraemer just kept saying, no, you must tell the people what is happening and what direction Europe was going in. It was almost like listening to a child (a very smart honest one) who had no understanding of the concept of dishonesty or lying to people.

TruckerT

Dose anyone still seriously question that the Banking Industry is still in complete control of Mr David Cameron, Mr Barak Obama and Messrs/dames Merkozy etc?

In 2008, they pushed it to the limit, and profited - that's what they do. Bankers are more powerful, and more clever, than politicians

TruckerT

Generali

michaels wrote: »

And RBS and Lloyds?

And I thought the German banks only neded to raise a small amount of capital, much less than their European peers?

Indeed. It's mostly just that Commerz have been the first to come clean.

I think the total is about £100,000,000,000 across the Eurozone. The Spanish banks need more than EUR25,000,000,000!!!:eek:

The UK banks have been told they don't need to raise any more money for now. Presumably that's a result of QE supporting the price of UK banks' assets.

neverdespairgirl

That number of zeros makes my eyes cross.

sabretoothtigger

I lose count of all the zeros, sounds alot

Spanish banks presumably includes Santander but they have more business outside the country then inside, I think. Hopefully they have diversified the government bonds they hold as security

Thrugelmir

Generali wrote: »

The UK banks have been told they don't need to raise any more money for now. Presumably that's a result of QE supporting the price of UK banks' assets.

I thought it was down to a weak £ reducing the banks liabilities.

1984ReturnsForReal_2

Evening Gen.

More carp hitting the fan by Monday morning then.

Fatherland civis are going to love this one...........