UK tragedy unfolding

[JulieW]

http://thetruthisnow.com/archives/l...ns-banks-simply-do-not-have-enough-money-war/

Britain's banks do not have enough capital to withstand an escalation in the eurozone crisis, the Bank of England has warned.

Members of the Financial Policy Committee (FPC), the Bank's risk regulator, "judged that the overall capitalisation of the banking system was unlikely to be sufficient for stability to be assured" if there were "severe but plausible" developments in the sovereign debt crisis, according to minutes of last month's meeting.

The committee was also sufficiently concerned about weak lending in the UK to consider suspending the rules governing how much banks must hold in cash and other liquid assets to get credit flowing again. The rules may have "pushed up the pricing of loans" and, by relaxing them, funds "supporting liquid assets could potentially be used instead to finance lending", the minutes said.

You can't make this up:

The Bank has been taking drastic measures to rekindle growth in the UK. Last month, it unveiled a "funding for lending" scheme to boost the supply of credit to businesses and families and lower borrowing costs, as well as an emergency liquidity facility to underpin confidence in the banks.

It has since loosened the liquidity rules and injected another 50bn of stimulus into the economy through quantitative easing, which is now due to hit 375bn or almost 40pc of the entire stock of national debt. The Bank has grown particularly concerned that rising borrowing costs could trigger defaults that cause bank losses to mount, setting off "an adverse feedback loop" that would "weigh on economic growth and threaten the health of the financial system as a whole".

 

[thatguy]

solution to debt crisis... more debt :|

Just keep stacking... just keep stacking...

 

[JulieW]

The cash that the banks 'don't have to hold' is not bloody well theirs, it belongs to the people, who've lost nearly a third of it's purchasing power since 2008.

Get ready for another rioting summer and Thatcher era type riots.

http://www.dailymail.co.uk/news/art...-rioters-rampage-again.html?ito=feeds-newsxml

It's those who were torn from their homes last summer and who come out to see society doesn't have anything invested in them who should furrow the brows of our political leaders - but you can bet they won't spare them a moment's thought until it's too late, again.

Last summer's riots were disgraceful. But it is my belief that Cameron's and Clegg's cuts have looted the prospects of the young who, for the first time in British history, can expect to be worse off than their parents.

The billions the Government is throwing at the Olympics can only be a source of rage when, at the same time, the most vulnerable members of society are having the floor ripped from beneath them. At every turn the Government is sending out one message loud and clear to the young and increasingly dispossessed, and that is: 'We don't care.'

 

[amgyoubb]

http://thetruthisnow.com/archives/l...ns-banks-simply-do-not-have-enough-money-war/

Britain's banks do not have enough capital to withstand an escalation in the eurozone crisis, the Bank of England has warned.

Julie , I think that prudent capital adequacy ratios left the building a long time ago. This is particularly evident in the US where they just keep changing the requirements ( lower standards) as the banks become more loaded with toxic debt.
it would be interesting to see the Ozzie banks stress tested against a large fall in real estate prices..as we know that is all the bans have on their asset side..the vast majority of business lending is all secured against real estate in the end.

like we saw with the demise of Arthur Anderson the auditors walk a fine line of complicity of artful accounting practices by the banks and staying in business them selves..its hard to be a hard nosed auditor and keep a very lucrative account.

so will the UK banks fallover ??? or like Japan's banks they pass the debt / loss around and around and around..never really marking it to market....I think the merry go round will keep on spinning ..it human nature fight to the bitter end.

 

[hiho]

From "sound as the pound" to get outta town