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  •  Those "NET" and "GROSS" numbers, in my... (9+ / 0-)

    ...previous comment are for contracts on Italy and Spain, only. And, that's just from the reported trades at the DTCC/ISDA. Most of the underlying, critical information is not available to the general public.

    "I always thought if you worked hard enough and tried hard enough, things would work out. I was wrong." --Katharine Graham

    by bobswern on Sun Oct 13, 2013 at 10:11:42 PM PDT

    [ Parent ]

    •  As of midday, in the U.S.... (1+ / 0-)
      Recommended by:

      Republishing this from another thread here...

      ECB under pressure to roll out new round of short-term liquidity loans
      10/14/2013 | Wall Street Journal (tiered subscription model)

      During the worst days of Europe's debt crisis, the European Central Bank injected liquidity by making inexpensive three-year loans through its Long-Term Refinancing Operation. A number of economists, banks and policymakers are calling for a new round of cheap short-term loans because they are worried about liquidity drying up too much.

      Meanwhile, the MSM is improperly focused upon the U.S., where (if there's any "default," it'll be a political creation, and only for a moment)...


      ISDA: Credit-default swaps would pay max of $3.6B if U.S. defaults
      10/14/2013   Bloomberg

      According to ISDA, if the U.S. government failed to come to an agreement on the debt ceiling, the sellers of credit-default swaps would pay as high as $3.6 billion. "That's the maximum potential payout there could possibly be, even if after the auction we would hold, the value of the U.S. government bonds was zero, which obviously wouldn't be the case," said David Geen, ISDA's general counsel.
      View Full Article in:

      And, the CEO of DeutscheBank is freaking out, because they’re so thinly capitalized (they have a shitload of overvalued assets on their books), if the U.S. even misses one interest payment on their bonds, he knows he’s in deep doo-doo.

      Longer-term...this (see below) is most likely how it'll play out (the U.S. Fed will come to the rescue of the European banks--just like it did a few years ago--which I'm pretty certain it's already doing spades), and the public will be the last to learn about it (probably 2-3 years from now)...

      How Ben Bernanke Saved Europe’s Banks

      The story of an unprecedented effort by the U.S. central bank to serve as the lender of last resort to the world.

      The Globalist
      By Neil Irwin, May 12, 2013


      •    Few knew at the time that European banks had bought vast sums of U.S. mortgage securities.
      •    Swap lines have been the unsung hero of managing the mega-crisis of the last six years.
      •    They are the tool central bankers used repeatedly to keep the world financial system together.
      •    "In a way," as a European central banker told me, "we became the thirteenth Federal Reserve district."

      The most commonly told story of the 2008 financial crisis goes something like this: There was a lot of bad lending for U.S. housing. Big U.S. financial institutions took losses they couldn’t handle.

      U.S. officials engaged in a series of bailouts, or in the case of Lehman, a non-bailout. These eventually, and at great cost, contained the damage.

      But it was not before the sense of panic spread across the world, making almost every country on earth part of the collateral damage...

      Like I said, already well underway...
      Bank exposure to EU states’ bonds on rise
      October 13, 2013 6:49 pm
      By Christopher Thompson and Patrick Jenkins

      Europe’s financial institutions are more exposed to their domestic government bonds than at any time since the eurozone crisis started, reigniting concerns that the fates of sovereign states and their banks are too closely intertwined.

      Despite official pledges by eurozone authorities to break the “sovereign-bank nexus”, government bonds accounted for more than a 10th of Italian banks’ total assets at the end of August, the last month for which data are available. That is up from 6.8 per cent at the beginning of 2012, according to data from the European Central Bank…

      (Bold type is commenter's emphasis.)


      The Fed's Bailout Of Europe Continues With Record $237 Billion Injected Into Foreign Banks In Past Month
      Zero Hedge
      February 9th, 2013

      Last weekend Zero Hedge once again broke the news that just like back in June 2011, when as part of the launch of QE2 we demonstrated that all the incremental cash resulting form the $600 billion surge in the Fed's excess reserves, had gone not to domestically-chartered US banks, but to subsidiaries of foreign banks operating on US soil. To be sure, various other secondary outlets picked up on the story without proper attribution, most notably the WSJ, which cited a Stone McCarthy report adding the caveat that "interpreting the data released by the Federal Reserve is a bit challenging" and also adding the usual incorrect attempts at interpretation for why this is happening. To the contrary: interpreting the data is quite simple, which is why we made an explicit prediction: 'We urge readers to check the weekly status of the H.8 when it comes out every Friday night, and specifically line item 25 on page 18, as we have a sinking feeling that as the Fed creates $85 billion in reserves every month... it will do just one thing: hand the cash right over straight to still hopelessly insolvent European banks." So with Friday having come and gone, we did just the check we suggested. As the chart below shows, we were right.

      The Fed's most numbers, since this last article appeared (in February), note a modest increase from that point, with money shifting from other EU banks into France, however.

      Here's a good status report...from Reuters, Sunday morning...(note the bullet-point regarding the Cyprus-like dip into depositor accounts, if push comes to shove)...

      Factbox: Europe's slow march to repair its banks
      Reporting by Robin Emmott and John O'Donnell
      Sun Oct 13, 2013 9:19am EDT

      (Reuters) - Euro zone countries are trying to find a way to pay for the repair of their broken banks, testing governments' resolve to come clean on the problems that have festered since the global financial crisis.

      Here are the steps taken so far to impose order on Europe's financial system and draw a line under years of taxpayer-funded bailouts that have prompted public outrage:

      * First, the European Union agreed in 2012 common rules for Europe's 8,000 banks to set aside more capital to cushion against losses. Higher buffers strengthen banks to withstand shocks, such as a slump in property prices or recession. Banks with higher-than-average capital attract deposits.

      * Earlier this year, the European Commission, the EU executive, sharpened the bloc's state aid rules to share the costs of bank failures, stipulating that shareholders and junior bondholders will share the burden of saving a stricken bank.

      * In March, the bailout of Cyprus set a new precedent for saving banks, by also forcing losses on senior bondholders and depositors with more than 100,000 euros ($135,000).

      EU finance ministers agreed in June to adapt a similar but milder approach in EU law. The framework needs to be finalized with lawmakers in the European Parliament before coming into force…

      Yeah...we'll learn all about this via U.S. TV reports, today and tonight...NOT!!! (REALITY: This will be a lengthy, drawn-out process that will occur over multiple years, at best. Wouldn't surprise me if a couple more large EU banks go down, in the process, creatingi somewhat of a domino effect, and significantly undermining some of the top-five U.S. bank balance sheets in the process--which will all be falsely attributed to other reasons here in the U.S. MSM.)

      Meanwhile, this week here at home, it's all about (ZOMG!) "TEH DEFAULT!"

      A truly total crock of Wall Street propaganda...

      "I always thought if you worked hard enough and tried hard enough, things would work out. I was wrong." --Katharine Graham

      by bobswern on Mon Oct 14, 2013 at 10:19:49 AM PDT

      [ Parent ]

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