Deutsche Bank slammed by the US-based trio of IMF, Fed and Moody’s

Deutsche Bank. Overview of the trading floor in Frankfurt am Main, Germany. (Deutsche Bank audiovisual Services).

Last Thursday morning the International Monetary Fund and the American central bank, the Fed, simultaneously but in the face of it independently, issued warnings about the health of the largest German lender, the long ailing Deutsche Bank. A few days before that the US rating agency Moody’s had degraded the creditworthiness of the bank close […]

Who cares more about taxpayers? The US by being harsh on major banks or the EU still caressing them?

The EU is quite pathetic about establishing a common deposit guarantee scheme in the European Banking Union. In this way the EBU remains always a phantom institution. The sorry state of affairs is pictured above, where the last concrete action towards creating a really European deposit guarantee system took place many months ago (last December). From left to right, Mejra Festić, Vice-Governor of the Central Bank of Slovenia, Thierry Dissaux, Chairman of the Board of the Guarantee Fund for Deposit and Resolution (Fonds de Garantie des Dépôts et de Résolution - FGDR), Dirk Cupei, Head of the Department "Financial market stability" at the Association of German Banks (BdB - Bundesverband deutscher Banken), Alex Kuczynski, Coordinator of the EU Committee of the European Forum of Deposit Insurers (EFDI), Giuseppe Boccuzzi, Director General of the Italian Interbank Deposit Protection Fund, and Joseph Delhaye, Chairman of the Guarantee Deposit Association Luxembourg (Association pour la Garantie des Dépôts Luxembourg - AGDL). Date: 03/12/2015. Location: Brussels - EC/Berlaymont. © European Union, 2015 / Source: EC - Audiovisual Service / Photo: Etienne Ansotte.

The world economy remains more or less motionless or even recedes six years after the financial meltdown, because the banking industry has not yet decided what’s best for its interests. Continue leveraging itself (borrowing) on central bank liquidity in a stagnating environment, or start deleveraging and send the world to another deep recession, if not […]

Can the next financial crisis be avoided?

High-level seminar of the European Political Strategy Centre on the European Deposit Insurance Scheme (EDIS). From left to right, Mejra Festić, Vice-Governor of the Central Bank of Slovenia, Thierry Dissaux, Chairman of the Board of the Guarantee Fund for Deposit and Resolution, Dirk Cupei, Head of the Department "Financial market stability" at the Association of German Banks, Alex Kuczynski, Coordinator of the EU Committee of the European Forum of Deposit Insurers (EFDI), Giuseppe Boccuzzi, Director General of the Italian Interbank Deposit Protection Fund, and Joseph Delhaye, Chairman of the Guarantee Deposit Association Luxembourg. (Date: 03/12/2015, Location: Brussels – EC / Berlaymont, © European Union , 2015/Source: EC - Audiovisual Service/Photo: Etienne Ansotte).

The descent of prices in the world capital markets continued almost unhindered this past week and only last Friday financial, oil and commodity values gained some limited grounds. Altogether however, the major stock markets have erased trillions off their capitalization since last June, when the dark clouds gathered above the Chinese mega-cities of Shanghai and […]

Why are the financial markets shivering again?

The financial district of the City of London. Audiovisual service presse.audiovisuel@consilium.europa.eu. © European Union.

The major central banks of the world are currently in the middle of a precise but of dubious results surgical operation on capital markets. On the one hand, the monetary authorities aim at supporting the real economy by injecting more cash into the financial system. On the other, they try to mitigate the risky super […]

The Commission sees ‘moderate recovery’ but prospects deteriorate

Pierre Moscovici, Member of the European Commission in charge of Economic and Financial Affairs, Taxation and Customs, gave a press conference on the 2015 Autumn Economic Forecast. (EC Audiovisual Services. Date: 05/11/2015. Location: Brussels - EC/Berlaymont).

The European Commission released last week its “Autumn 2015 Economic Forecast”, advertising ‘moderate recovery’ for the European Union and the euro area. Understandably, the Commission wouldn’t dig deeper in the economy, to highlight the negative aspects of the present status and the subdued prospects for next year. For a number of important reasons the executive […]

Why the ECB prepares to flood the markets with more and free of charge euro; everybody needs that now

Euro Summit. Mario Draghi, European Central Bank President participated in the July 2015 European Council Summit. (Shoot location: Brussels – Belgium. Shoot date: 07/07/2015. Copyright credit: 'The European Union').

Mario Draghi’s statement of last Thursday from Malta that the European Central Bank’s “monetary policy accommodation will need to be re-examined at our December monetary policy meeting”, offered a strong support to all major capital markets, with stocks gaining a lot of ground and the euro receding slightly. Understandably, a generous increase of ECB’s monthly […]

A new global financial crisis develops fast; who denies it?

Xi Jinping, President of the People's Republic of China, visited the European Commission. Jinping, in the foreground, on the left photographed here with Li Zhanshu, Member of the Political Bureau of the Central Committee of the Communist Party of China (CCCPC); Member of the Secretariat of the CCCPC; Head of the General Office of the CCCPC, on the right. (EC Audiovisual Services, Date: 31/03/2014 Location: Brussels - EC/Berlaymont).

During the last two weeks the world’s largest stock markets had a wild time not seen since Lehman Brothers went bust on 15 September 2008. The New York stock exchange in Wall Street lost more than 8% of its capitalization in a few days and then recovered some of the losses to close last Friday […]

Is the ECB ready to flood Eurozone with freshly printed money?

Jyrki Katainen, Vice-President of the European Commission in charge of Jobs, Growth, Investment and Competitiveness, (on the left) and Pierre Moscovici, Member of the EC in charge of Economic and Financial Affairs, Taxation and Customs, gave a joint press conference on the autumn economic forecasts for 2014-2016. A weak economic growth for the rest of the year 2014 in both the EU and the euro area was expected. Real GDP growth was expected to reach 1.3% in the EU and 0.8% in the euro area for 2014 as a whole. (EC Audiovisual Services, 04/11/2014).

The insatiable appetite of the global financial system for more free cash from central banks has now reached the Governing Council of the European Central Bank. After the American central bank, the Fed, announced last month that it discontinues its quantitative easing policy, under which it has supplied the US banks with around $ 4 […]

IMF’s Lagarde indirectly cautioned Eurozone on deflation

IMF Managing Director, Christine Lagarde spoke yesterday at the National Press Club in the U.S. capital. (IMF photographic library, 15/1/2014).

Weak growth is threatened by deflation in the developed world, while emerging markets have to overcome the financial turbulences that lie ahead, due to forthcoming restrictive monetary policy by the US central bank, the Fed. This is what IMF Managing Director Christine Lagarde said yesterday, speaking at the National Press Club in the U.S. capital. […]

IMF’s Lagarde to Peoples of the world: You have to work more for the banks!

Christine Lagarde, Managing Director of IMF, is giving a speech at National Bank of Romania, Romania, July 16, 2013. (IMF’s Audiovisual Services).

  Christine Lagarde, Managing Director of the International Monetary Fund, delivered a speech recently during this year’s Jackson Hole Symposium, praising the Unconventional Monetary Policies (UMP) followed by the central banks to save the world from a great depression, similar to the one of 1929. The risk was real as Lagarde noted but she didn’t […]