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Wed Mar 27, 2013, 09:51 AM

It just never stops...Regulators Find British Banks Must Raise $38 Billion

Gee..I wonder where they will get the money????


British banks must raise a combined £25 billion, or $38 billion, in new capital by the end of the year to protect against future financial shocks, according to a report from local authorities on Wednesday.

The Bank of England, which takes over the direct supervision of British firms like HSBC and Barclays next week, said the new reserves were needed to protect against losses connected to risky loan portfolios, future regulatory fines and the readjustment of banks’ bloated balance sheets.

Snip....
The reported released on Wednesday said that local banks had overstated their capital reserves by a combined £50 billion, which authorities said would now be adjusted on the firm’s balance sheets. Many of the country’s banks already have enough money to handle the accounting adjustment, the report said on Wednesday.
http://dealbook.nytimes.com/2013/03/27/regulators-find-british-banks-must-raise-38-billion/


"overstated"..a nice word for lying.
so is "account adjustment"
What they really mean is, new rules say banks have to have enough cash to back their gambling costs.

6 replies, 631 views

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Reply It just never stops...Regulators Find British Banks Must Raise $38 Billion (Original post)
dixiegrrrrl Mar 2013 OP
dipsydoodle Mar 2013 #1
DetlefK Mar 2013 #2
dixiegrrrrl Mar 2013 #3
uponit7771 Mar 2013 #4
Earth_First Mar 2013 #5
dixiegrrrrl Mar 2013 #6

Response to dixiegrrrrl (Original post)

Wed Mar 27, 2013, 09:57 AM

1. overstated more likely means

they've not accounted sufficiently for bad / delinquent debts.

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Response to dixiegrrrrl (Original post)

Wed Mar 27, 2013, 10:08 AM

2. Basel III says that backing 7% of your gambling risks is enough.

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Response to DetlefK (Reply #2)

Wed Mar 27, 2013, 10:31 AM

3. Only 7%....wow.

Given the amount of derivatives sloshing around the world economy....

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Response to dixiegrrrrl (Original post)

Wed Mar 27, 2013, 10:47 AM

4. they'll steal it from their customers

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Response to dixiegrrrrl (Original post)

Wed Mar 27, 2013, 10:50 AM

5. There's a model in Cypress that is currently being tweaked...

It will hit the streets worldwide at some point

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Response to Earth_First (Reply #5)

Wed Mar 27, 2013, 11:08 AM

6. Even Yahoo agrees with you...

Banks In Europe May Now Seize Deposits To Cover Their Gambling Losses
http://finance.yahoo.com/blogs/daily-ticker/banks-europe-may-now-seize-deposits-cover-gambling-134036516.html

Now the finance stories are talking about how Cyprus depositors under $100,000 "will be protected"
like that is such a big deal
compared to fact any bank depositors got their money swiped by the banks.

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