How’s the stock market?

casa_mugrienta

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WASHINGTON/LONDON, June 24 (Reuters) - The U.S. units of major European lenders including Deutsche Bank, Barclays and Credit Suisse sailed through the Federal Reserve's annual "stress tests" on Thursday, showing they hold enough capital to weather an economic shock.

For the seven European bank subsidiaries the Fed oversees with more than $100 billion in assets, the average capital ratio -- a measure of the cushion a bank has to withstand potential losses -- remained well above the regulatory minimum of 4.5%.


@Aruka @Sharkbiscuit
 

Northern_Shores

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Deutsche Bank had a profit of $5.6 billion in 2022. I think they'll be ok. At this point people are panicing because it's in vogue.
I might even buy some DB stocks when I get my sh!t together. P/E of 3! They are less profitable than many other banks because there are these credit unions that lend out money with almost no profit margin in Germany. So DB and the big fish can't screw over their customers like they do in other countriers.
 
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Aruka

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WASHINGTON/LONDON, June 24 (Reuters) - The U.S. units of major European lenders including Deutsche Bank, Barclays and Credit Suisse sailed through the Federal Reserve's annual "stress tests" on Thursday, showing they hold enough capital to weather an economic shock.

For the seven European bank subsidiaries the Fed oversees with more than $100 billion in assets, the average capital ratio -- a measure of the cushion a bank has to withstand potential losses -- remained well above the regulatory minimum of 4.5%.


@Aruka @Sharkbiscuit
Cool, an article from 10 months ago when the interest rate was 1.2%...

If you've got an alternative to regulating the banks, I'm all ears.
BTW, my invitation still stands for anyone who still wants to make a bet the “hawkish” Fed won’t pivot and cut. Any takers? Lol.
This aged well. Don't feel bad though. It turns out making economic predictions is hard.

Just ask our resident nordic autist.
 
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Sharkbiscuit

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WASHINGTON/LONDON, June 24 (Reuters) - The U.S. units of major European lenders including Deutsche Bank, Barclays and Credit Suisse sailed through the Federal Reserve's annual "stress tests" on Thursday, showing they hold enough capital to weather an economic shock.

For the seven European bank subsidiaries the Fed oversees with more than $100 billion in assets, the average capital ratio -- a measure of the cushion a bank has to withstand potential losses -- remained well above the regulatory minimum of 4.5%.


@Aruka @Sharkbiscuit
So UBS is now too bigger to fail.

Also, love that the headline was Credit Suisse collapsed because of "material weaknesses in reporting". Like it's the TPS Reports from Office Space is why the Swiss government/national bank basically melted them into another chocolate.

Apparently they were badly exposed to something in London called Greensill Capital going t!ts up in 2021.
 
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casa_mugrienta

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Cool, an article from 10 months ago when the interest rate was 1.2%...
Well... yeah.

Which is exactly my point.

A stress test isn't going to be able to run through all the possible scenarios.

What's really needed is a stress test for the entire financial system, would you agree? Interest rates kept at record lows for an extended period time, QE, bailouts, stimmy checks...come the fuck on...what kind of idiot thought this would end well? I mean I guess the proponents of MMT...

If you've got an alternative to regulating the banks, I'm all ears.
I didn't ever say I don't think banks need regs.

What additional regulations are you asking for, specifically?

Also, what sort of people do you think handle the regulating?

This aged well. Don't feel bad though. It turns out making economic predictions is hard.
Uhhh... refer back to my posts from March? 2022.

The Fed pivoted with BTFP. QT is done, and the progress that was made has been reversed. We're back to QE.

And next up is a rate cut.
 

Northern_Shores

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Mar 30, 2009
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Bear trapping!

This is the money song I listen to when I need to find the strenght to carry on


1679935349820.png

Hopefully later this week I'll be back on the big money blaster tune.
 

casa_mugrienta

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6/ The
@BrookingsInst
article makes out that this is fine and dandy - a ‘natural’ rebalancing. But is it? I don’t think so. It’s not unlike convincing your plumber to accept a Bitcoin payment. When it loses half its value do you think he’ll do your plumbing again? Nope.


7/ The US is ‘paying’ its international creditors in volatile assets. The implicit promise is that these assets are good investments. If and when they turn out to be volatile investments, America’s international creditors may look to sell their goods elsewhere - like our plumber.


Well put.

And further the US gvmt is not run so much via taxes, but rather by foreign govmts buying US govmt IOUs...so quite a precarious system we've set up.
 
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r32

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French authorities raided five banks on Tuesday as part of an investigation into massive suspected cases of tax fraud and money laundering.

Some 150 investigators, along with six German prosecutors, conducted searches in Paris and the financial district La Defense, the financial prosecutor's office said in a statement.

The amounts are suspected to have reached 140 billion euros ($151 billion) over a period of 20 years, the media group said in 2021.

 
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r32

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Apr 1, 2005
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Saudi Arabia’s cabinet approved a decision to join a China-led security bloc, strengthening Riyadh’s eastern ties in a further step away from U.S. interests.

Shanghai Cooperation Organization — a political political, security and trade alliance that lists China, Russia, India, Pakistan and four other central Asian nations as full members.

DXY 1h (US Dollar Index)

1680124856875.png
 

PRCD

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Feb 25, 2020
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Saudi Arabia’s cabinet approved a decision to join a China-led security bloc, strengthening Riyadh’s eastern ties in a further step away from U.S. interests.

Shanghai Cooperation Organization — a political political, security and trade alliance that lists China, Russia, India, Pakistan and four other central Asian nations as full members.

DXY 1h (US Dollar Index)
RIP petrodollar

Some schadenfreude:
 
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