U.S. and UK to test big bank collapse in joint model run

[Ria]

U.S. and UK to test big bank collapse in joint model run

"Oct 10 (Reuters) - Regulators from the United States and the United Kingdom will get together in a war room next week to see if they can cope with any possible fall-out when the next big bank topples over, the two countries said on Friday.

Treasury Secretary Jack Lew and the UK's Chancellor of the Exchequer, George Osborne, on Monday will run a joint exercise simulating how they would prop up a large bank with operations in both countries that has landed in trouble.

Also taking part are Federal Reserve Chair Janet Yellen and Bank of England Governor Mark Carney, and the heads of a large number of other regulators, in a meeting hosted by the U.S. Federal Deposit Insurance Corporation.

"We are going to make sure that we can handle an institution that previously would have been regarded as too big to fail. We're confident that we now have choices that did not exist in the past," Osborne said at the International Monetary Fund's annual meeting.

Six years after the financial crisis, politicians and regulators around the globe are keen to prove they have created rules that will allow them to let a large bank go under without spending billions in taxpayer dollars.

They have forced banks to ramp up equity and debt capital buffers to protect taxpayers against losses, and have told them to write plans that lay out how they can go through ordinary bankruptcy. The plans are so-called living wills.

Yet salvaging a bank with operations in several countries - which is the norm for most of the world's largest banks such as Deutsche Bank, Citigroup Inc and JPMorgan - has proven to be a particularly thorny issue.

Because the failure of a big bank is such a rare event, regulators may not be used to talking to each other. There have also been suspicions that supervisors would first look to save the domestic operations of a bank, and would worry less about units abroad.

The exercise comes as regulators are about to bring to fruition further initiatives to make banking safer.

The first would force banks to have more long-term bonds that investors know can lose their value during a crisis, on top of their equity capital, to double their so-called Total Loss-Absorbing Capacity (TLAC).

A second measure, expected to be announced this weekend, will force through a change in derivative contracts, which in their current form protect investors, and complicate the winding down of a bank across borders. (Editing by Matthew Lewis)"

http://www.reuters.com/article/2014/...0S52LK20141010

[norman]

I'll bet it's all about sniffing out the defenses so they can make sure nothing stops them collapsing the banks later.

[Sooz]

I read in mainstream news, now economic journalists are 'trying' to say things as much as they can. Implying the big banks are very shaky right now. But being very careful with their wording.

I guess the average person wouldn't get the 'clue'. But those of us who study msn and alternative media, are getting a sniff.

[Ria]

Last Friday it was revealed that the purpose behind Secretary of State John Kerry's visit to Saudi Arabia a few weeks back was to sign a secret deal by which the leading OPEC state would saturate the markets with excess oil and cause prices to fall for the global commodity. This move would have the consequence of causing vast harm to the Russian Rouble, and increase inflation and price instability for the Eurasian state.

However, on Oct. 13 Russia's strongest ally and member nation in the BRICS coalition signed its own deal with the Eurasian power to not only help stabilize prices for the beleaguered economy, but increase direct non-dollar trade with a 150 billion currency swap deal through which Russian Roubles are traded directly for Chinese Yuan. This new deal will have the effect of bypassing the dollar and the the reserve currencies overt effects on the Rouble that is part of the ongoing proxy war between America and the East, and also mitigate some of the consequences of the secret Saudi oil program.

http://www.examiner.com/article/as-s...ina-intervenes

"China is willing to export to Russia such competitive products as agricultural goods, oil and gas equipment, and is ready to import Russian engineering products," Wang Yang said during the 18th session of the Russian-Chinese Commission for the Preparation of Regular Meetings of the Heads of Governments.

And the cherry on top came moments ago when, as if to assure all involved parties that there will be enough capital support on both sides, the PBOC released a surprising announcement that the central banks of China and Russia signed a 3-year, 150 billion yuan bilateral local-currency swap deal today, according to a statement posted on PBOC website. Deal can be expanded if both parties agree, statement says. Deal aims to make bilateral trade and direct investment more convenient and promote economic development in 2 nations. - Zerohedge
The significance of this deal is two-fold. First, by allowing for Russia to have direct trade between themselves and China in their own national currencies, Russia can mitigate some of their escalating price inflation within their country that is a direct result of Saudi Arabia's overt actions to drive down the price of oil. Secondly, by facilitating the purchasing of Chinese products without the use of the dollar as a middle-man, Russia puts even more pressure on Europe who is hemorrhaging trade that had been a mainstay between the EU and Russia, and which is now accelerating Europe's path into recession.

As long as oil is denominated in dollars in the global market, the U.S. can and will use its control over the petro-dollar and reserve currency to inflict economic war against any and all nations that do not cede to American national policies. And with the U.S.'s current desire to escalate chaos in both Ukraine and Syria, and to keep Russia out of the picture and unable to protect their new and long-standing allies by disrupting their economy and currency, today's intervention by China may be the key in allowing Russia to stabilize prices within their economy, and to inflict greater harm to America's allies who still are beholden to dollar denominated trade.

[Ria]

"Carney flies to Washington for bank war-game
THE BANK of England yesterday sent almost its entire top tier of executives to Washington to test out a fictional scenario of a banking collapse with their American counterparts.

The war-game was designed to test communications and planning bet*ween the two nations, so that they would be better prep*ared for any real crash.

Britain and the US are closer together than most other countries in terms of deciding which authorities deal with different parts of a failed bank.

Governor Mark Carney went to Washington, as well as his deputies Andrew Bai*l*ey, Minouche Sha*f*ik, and Sir Jon Cunliffe, as well as City regulator Mar*tin Wheatley. They left deputy gover*nor Ben Broadbent in London minding the shop.

US regulators at the drill included Federal Reserve chair Janet Yellen and treasury secretary Jack Lew. The war-game was hosted by Federal Deposit In*s*ur*ance Corp*oration chairman Martin Gruenberg.

One problem in the financial crisis was the complex cross-border nature of the world’s biggest banks. It meant that national regulators could be tempted to salvage as much as possible of a failed banks’ assets for investors and customers in their own country, leading to further instability.

It was hoped to make the pro*cess more or*d*erly in future."
http://www.cityam.com/1413248116/car...-bank-war-game

[Ria]

Bank of England orders inquiry after payment system crash hits home sales -- live updates

http://www.theguardian.com/business/...-business-live

[Ria]

FINAL PROOF THE FINANCIAL SYSTEM IS ENDING/CHANGING SOON
https://m.youtube.com/watch?v=SGyWg8tVVPQ


Oh Look At The Admission!
http://www.market-ticker.org/akcs-www?post=229523

[Ria]

Deutsche Bank lawyer found dead by suicide in New York

http://m.youtube.com/watch?v=cILZ_cB3_so

[Ria]

DEAD BANKSTERS & CHINA'S 30,000 TONS OF GOLD -- Alasdair Macleod

http://m.youtube.com/watch?v=FoJaXPue5hU

[Ria]

Rampant financial crime in City of London eroding public trust - BoE]A top Bank of England (BoE) official warns widespread financial crime in the City of London is eroding public trust. The BoE’s criticism surfaced as it launched a review to tackle market manipulation.

In her first public address since adopting the position of BoE Deputy Governor, Nemet Minouche Shafik denounced the actions of UK traders in foreign exchange, currencies and bonds markets, warning financial misconduct in these sectors goes well beyond a few rogue financiers.

Referencing LIBOR riggers’ behavior as unacceptable, she suggested fines for such fraudulent activity were inadequate and signified “salt rubbed into the wounds to public confidence in financial markets.”


http://rt.com/uk/200235-financial-cr...ic-confidence/