Tuesday, July 3, 2012

Around the horn in Europe by way of the Telegraph liveblog , The Slog , Eurointelligence and much , much more ! Zero Hedge... note after threatening to pull back the covers and expose the UK pols and liars at the BOE , Bob Diamond folded like a cheap suit one day later !

http://aviagemdosargonautas.blogs.sapo.pt/1783772.html


The rally fades as investors are digesting the agreement

  • Spanish and Irish bond yields rise as investors are beginning to comprehend that the two planks of last Thursday’s agreement are unlikely to have much effect on the crisis;
  • Finland says it has Dutch support to veto secondary market bond purchases through the ESM;
  • there is some confusion whether this is possible, as the ESM may invoke an emergency rule, under which a majority of 85% of the ESM capital is required;
  • the Finnish government told the parliament that it had already intervened and vetoed secondary market bond purchases;
  • legal uncertainty about the voting rights is likely to continue;
  • Finland’s PM also said it will take at least a year until the political preconditions are met for direct equity injections;
  • Jim Yong Kim says World Bank may help Greece;
  • Greece offers acceleration of privatisation programme in exchange for a fiscal deadline extension;
  • Greece will for the time being not ask for a direct equity intervention in Greek banks;
  • US purchasing managers’ index plummets in the US, as eurozone crisis takes its global toll;
  • Court of Auditors says France needs €33bn to get to 3.0% in 2013;
  • ECB staff union warns Draghi of “serious potential operational risk” due to overwork;
  • the German constitutional court has set a date for oral hearings in the ESM case;
  • Gideon Rachman says this is not the moment for a UK referendum on Europe, as outcome of eurozone crisis should be awaited;
  • the impact of last week’s agreement is likely to be massively exaggerated in the case of Ireland;
  • Paul de Grauwe, meanwhile, says that ESM secondary market bond purchase will have the opposite effect of what they intended.
The numbers on our table are telling the story – and it is the same story again and again. The surest way to make a lot of money in the markets is to bet on a short-lived post-summit rally, to be followed by a sustained decline. This seems to be happening again.
Spanish 10-year spreads are back up close to 5%, having fallen to 4.7% on Friday. Irish spreads, too, have been rising strongly, while Italian spreads have risen moderately. The euro held up, but it now below $1.26.

We can identify two reasons for this re-assessment, the most important being a closer look at the agreement reached in the European Council – which evoparates the second you even look at it. For some of more incisive commentary, see below.

The other reason is the sceptical position taken by some governments.The Finnish government said yesterday it has Dutch backing to prevent the eurozone's new permanent bailout fund - the ESM - from buying bonds in secondary markets.  Reuters quotes from a report the Finnish government submitted to parliament's influential Grand Committee "Due to intervention of Finland and, among others, the Netherlands, the possibility of ESM operations in the secondary markets was blocked." The Finnish statement, quoted by the AFP news agency, said that "in the future unanimity is needed in order to decide on [bond] purchases, and it seems that unanimity is not possible due to Finnish and Dutch opposition".

But the Wall Street Journal writes that if the money comes from the ESM, there might be no need for unanimity. The new ESM bailout fund allows for "emergency" approval from countries holding at least 85% of the ESM's capital, if the move is supported by both the ECB and the European Commission. The Netherlands and Finland are relatively small contributors to the ESM, contributing around 7.5% of the ESM's capital. FT Alphaville has the relevant quotes from the ESM treaty, but also notes that “ultimately it depends on which ESM measures it would be judged politic to push through under an emergency procedure — under which the required agreement is 85% rather than unanimous.”

With respect to the second plank of last week’s agreement, the direct support for banks, Prime Minister Jyrki Katainen told the Parliament’s Grand Committee that direct bank support will be possible only once a European banking supervisory organization is established. Until then, support will support will be channelled via states. Katainen does not expect that a supervisory organization will be set up for at least a year, the Finnish news agency YLE reports.  "In that case, it will be possible, if there is unanimous agreement, to capitalize banks directly. And in exchange, owners would lose their money and the EFSF would gain holdings in the banks," Katainen explained.

New world bank chief open to assist Greece

The new head of the World Bank said on Monday he was willing to let the global development lender advise troubled developed nations like Greece, a major shift for an institution that has focused on the world's poorest, Reuters reports.  Jim Yong Kim emphasized that his top priority would be to protect developing nations at a "pivotal moment" for a world economy that is losing steam rapidly. He said the bank could deploy its technical know-how to help richer nations with structural problems.

Greek government to focus on deadline extension

The coalition government is to make asking for one or two more years to meet its fiscal and reforms targets the main goal in its upcoming negotiations with European and International Monetary Fund officials, the leaders of the three parties in the new administration decided on Monday. In return for asking for more time for the fiscal adjustment program, the government is to offer the faster merger of public sector organizations and the sale of state assets. Sources told Kathimerini it was decided that Greece would not push at this stage for its 50-billion-euro bank recapitalization to be funded directly by the European Stability Mechanism, rather than by public debt. The government believes the eurozone would not be willing to accept such a move, as proposed for Spanish and Irish banks, at this stage but that the issue may come back into play at a later stage.

The eurozone crisis and US growth


There was an eerie sense about yesterday’s ISM purchasing managers’ numbers from the US. The manufacturing part sank from 53.5 to 49.7, indicating a contraction of output, which surprised a lot of economic. It was clearly the most shocking economic news of the year so far. Could this be an indirect effect of the eurozone crisis? Conversely, a double dip US recession is almost certain to impact the eurozone’s own recovery, and would have seriously negative effects on the south in particular, where it might prolong the recession to a point where the current strategies are no longer working.

Court of Auditors says France needs €33bn to get to 3.0% in 2013

In its report presented to the prime minister Jean-Marc Ayrault yesterday, the court of auditors says France needs to find €33bn until 2013 if the country is to respect its promise to the EU partners to get its deficit down to 3.0% by 2013, Le Monde writes. “France has not yet left the danger zone which it entered several years ago”, the court’s president Didier Migaud told the paper. “The rebuilding process is on its way but the biggest part of the work is ahead of us. We have to do this in an environment in which the Eurozone is weakened by the sovereign debt crisis.” Migaud also warned that the French public debt level which reached almost 90% this year will surpass the threshold of 100% by 2017.  Ayrault will today hold his first big speech at the national assembly and explain how he wants to get the country’s public finances under control. Le Monde’s leading front page story has the headline: “France: the turn towards austerity”. In an online poll among around 15.000 readers of Le Figaro almost 85% responded they were convinced that the Ayrault government would now engage into an austerity policy.

ECB staff union warns Draghi of “serious potential operational risk” due to overwork

The ECB staff union Ipso has written a letter to Mario Draghi and the other members of the the Executive Board warning them of  “serious potential operational risk for the ECB” due to permanent stress and overwork since the outbreak of the crisis, Financial Times Deutschland reports. The union claims that were an increasing number of longterm absences due to missions in the euro countries, but also due to stress related illnesses. Ipso refers to a poll it has done among the 1500 ECB staff which concluded that 80% complained about feeling overwhelmed by their work and 16% even talk about serious consequences over their workload for their health and their private lifes. The union concludes that the ECB is not adequately staffed for the task it is being asked to perform and even more so it takes on new tasks such as banking supervision. In a meeting with staff Draghi promised to seek an increase of the central bank’s head count.

Oral hearings at the Karlsruhe court about the ESM

There will be oral hearings at the German constitutional court on July 10 in Karlsruhe about the ESM in a procedural move that highly uncommon for urgent procedures, Frankfurter Allgemeine Zeitung reports. For the paper this is a sign of the importance the constitutional judges attach to the hearing about the German ESM law that was voted with a two-thirds-majority Friday evening immediately after Angela Merkel’s return from the EU summit. In an equally uncommon move the court had asked the German president Joachim Gauck not to immediately sign the law so that the court would have time to consider its constitutionality before its ratification procedure was formally over. Several groups have gone to the constitutional court because they think that the ESM surrenders the Bundestag’s budgetary powers in a way that is not in line with the constitution. Originally the ESM was supposed to enter into force as of July 1st. Experts think that the court will rule in July on the urgency procedures.

Gideon Rachman on the UK’s duplicity towards the EU

In his FT column, Gideon Rachman argues that it would be crazy for the UK to hold a referendum on the EU now because the starkly different outcomes of the eurozone crisis. If the eurozone crisis leads to a federation, Britain should consider leaving, he argues.

“Even under current government policy, it is increasingly possible to envisage circumstances in which Britain does leave the EU. George Osborne, the chancellor, has urged Europe to follow the ‘remorseless logic’ of monetary union and to press on towards a fiscal union. He thinks this is the only way to prevent an economic disaster that would also engulf Britain.


However, what Mr Osborne does not acknowledge is that this process also entails a remorseless logic for Britain. The more that the eurozone of 17 countries turns into a genuine fiscal, and then political, union, the harder it will be for Britain to stay inside the larger EU of 27 nations. Hitherto, Britain has always argued that the single market is the heart of the union. But, if the eurozone turns into a successful political union then, whatever the legal niceties, it would determine the future of the EU, and the cherished single market with it.”


Why optimism about Ireland is significantly exaggerated


The FT says that Irish joy may be exaggerated about the decision to inject equity into Spanish banks. The Irish had hoped that once the new rule is in place, it could be retroactively employed in Ireland as well, but the FT writes more than two-thirds of the equity invested into the two-pillar banks – AIB and Bank of Ireland. Most of the €30bn invested came through the national pension fund, which now values them at €9.4bn. It quotes John McHale as saying: “I don’t see anything that would lead me to revise a view that the chances of other European countries absorbing already crystallised losses in the Irish banks are approaching zero.”


 Paul de Grauwe says ESM bond purchases will destabilise the bond market


A very good column by Paul de Grauwe in Vox, where he argues that ESM bond purchases will have the opposite effect of what is intended because the ESM is too small. This is what is likely to happen.


“As soon as the ESM starts intervening, it will quickly destabilise the government bond markets in these two countries. The reason is the following.


Suppose a new movement of fear and panic, triggered for example by the deepening recession in Spain, pushes up the Spanish government bond rate again. To stem the tide the ESM starts buying Spanish bonds. Suppose it buys €200 billion worth of Spanish bonds. At the end of the operation it will be clear for everybody that the ESM has seen its resources decline from €500 billion to €300 billion. Less will be left over to face new crises. Investors will start forecasting the moment when the ESM will run out of cash. They will then do what one expects from clever people. They will sell bonds now rather than later.”


10-Y Spreads, Forex, ZC Swaps and Euribor-Ois
The bond rally is petering out. Spanish spreads close to 5% again, with yields at 6.5%.


10-year spreads
Previous dayYesterdayThis Morning
France1.1181.0681.099
Italy4.2384.3604.344
Spain4.7574.8844.913
Portugal8.6568.6709.099
Greece24.46624.392#VALUE!
Ireland4.8374.8595.238
Belgium1.6231.5141.588
Bund Yield1.5821.5191.535

Euro Bilateral Exchange Rate
PreviousThis morning
Dollar1.2641.2593
Yen100.580100.38
Pound0.8070.8023
Swiss Franc1.2011.2012


















ZC Inflation Swaps
previouslast close
1 yr1.111.24
2 yr1.281.22
5 yr1.511.45
10 yr1.771.79
Euribor-OIS Spread
previouslast close
1 Week-6.100-5
1 Month4.7863.486
3 Months29.43629.536
1 Year96.20795.307
Source: Reuters





http://globaleconomicanalysis.blogspot.com/2012/07/finland-netherlands-reject-esm-model.html


Tuesday, July 03, 2012 11:08 AM


Finland, Netherlands Reject ESM Model; Finland Insists On Collateral for Loans to Spain


How long Finland and the Netherlands are willing to put up with not having a say in how the ESM (or anything else in the EMU runs) remains to be seen, but both countries expect collateral for any loans to Spain.

Bloomberg reports Finland Firm on Collateral as Spain Aid Terms Discussed
 Finland underlined its determination to get collateral in exchange for loans to Spain’s banks as the Nordic country targets similar terms to those won last year on its contribution to Greece’s second bailout.

“We have the requirements of collateral on the loans that are from the temporary vehicle,” Jukka Pekkarinen, director general at the Finnish Finance Ministry in Helsinki, said in an interview in Oslo yesterday. “The details are still open, but the principle standpoint is the same” as in the case of Greece, he said.

Collateral Demand

Finland, one of only four AAA rated nations left in the euro area, threatened to hamper efforts to agree on a second bailout for Greece by insisting on collateral last year. The Nordic country was the only nation to negotiate security in exchange for loans from the temporary fund, or the European Financial Stability Facility, because the vehicle doesn’t give its creditors preferred status.

The Nordic country yesterday questioned the ability of the permanent rescue fund, the ESM, to purchase bonds through the secondary market. Finland, which opposes such purchases, argues the process would require unanimity inside the euro area to be possible.

There exists no unanimous agreement on the bond purchases because Finland and the Netherlands reject the model, the Finnish government said in a report dated June 29 and presented yesterday by Prime Minister Jyrki Katainen to the parliament’s Grand Committee in Helsinki. The government reiterated its opposition today, citing the rescue funds’ limited resources and the shown “ineffectiveness” of bond purchases. 

Can’t Block


Spain’s Economy Minister Luis de Guindos said today that the two countries won’t be able to block Spain from receiving aid via the euro region’s permanent rescue fund.


“There is a fundamental point in the ESM and that is that decisions are taken with a qualified majority, not unanimously,” de Guindos told journalists in Madrid. “I don’t want to go into calculations but Holland and Finland won’t have the capacity to block an agreement.”


The rules of the ESM include an emergency voting procedure, which requires a qualified majority of 85 percent of the votes cast if the European Commission and the European Central Bank see a threat to the economic and financial sustainability of the euro area. Finland’s parliament voted on June 21 to approve the permanent bailout fund and the Dutch upper house of parliament approved it today.


German Chancellor Angela Merkel declined to take sides in the dispute over sovereign-bond buying, saying “we have to respect” Finland’s opposition to such aid. Conditions for emergency financial aid to euro countries will be decided case by case, she said in Berlin today.

and.....






http://www.zerohedge.com/news/european-funding-stress-worst-over-3-months


European Funding Stress Worst In Over 3 Months

Tyler Durden's picture
Submitted by Tyler Durden on 07/03/2012 13:03 -0400




Despite this week's largest allotment to the ECB's 7-day tender in over 2 months, ECB collateral changes, a flat LIBOR, and endless game-changing summit conclusions, themarket's most accessible source of term USD financing (the EUR-USD basis swap) has collapsed to its worst level in over three months. Even as the sovereign and bank spreads have compressed in the last few days, demand for this short-term financing has soared (i.e. banks are willing to pay quite a penalty for that access). Whether this is a cleaner signal than Lie-bor is unclear </sarc> but for sure between this and the fact that 2Y Swiss rates are reverting lower once again, all is clearly not well in Europe (despite what every talking head tells you) and these remain the two most critical stress indicators for now.
While the 3-Month EUR-USD basis swap is at 3-month worst levels, it is still notably off of peak-crisis mode levels - but the trend is disconcerting when all is supposed to be fixed...
and 2Y Swiss rates have reverted back lower and safety bids remain very active...

and......

http://www.zerohedge.com/news/ecb-further-eases-collateral-terms


ECB Further Eases Collateral Terms



Tyler Durden's picture
Submitted by Tyler Durden on 07/03/2012 11:54 -0400






Two weeks ago, the ECB, which is now largely expected to cut rates by at least 25 bps imminently, announced it was aggressively expanding the eligible collateral pool of worthless "stuff" it would accept at face value in exchange for fresh EUR bills, in essence engaging in clear cut money printing with the footnote that it was really a loan. The only problem is the loan quality is absolutely worthless and the ECB knows this. Hence money for nothing. Today, the ECB has released another announcement on collateral eligibility, saying that "counterparties participating in Eurosystem credit operations should be allowed to increase current levels of own-use of government-guaranteed bank bonds subject to the ex-ante approval of the Governing Council in exceptional circumstances." However, lest it be seen as merely the latest confirmation that Europe no longer has money good assets, and the ECB is merely encouraging banks to pledge anything they can get their hands on in order to obtain a short-term liquidity injection, it also added the following rider: "[counterparties] may not submit such bonds or similar bonds issued by closely linked entities as collateral for Eurosystem credit operations in excess of the nominal value of these bonds already submitted as collateral on the day this Decision enters into force." But before someone takes this to mean that the ECB actually cares what "assets" on its balance sheet make back its now record €3+ trillion in liabilities, it added Rider B: "Governing Council may decide on derogations from the requirement laid down in paragraph 1." Translated: the free for allrehypothecation race is on, and probably in its last lap, as once any and all collateral is already pledged, the ECB's only hope will be to allow already hypothecated collateral to be rehypothecated. Something which in a non-banana republic would have cost Jon Corzine his job.


The European Central Bank Governing Council on Tuesday adopted a further change to ECB rules on the eligibility of collateral for Eurosystem refinancing operations.

In its preamble to the new rule, the Governing Council said “counterparties participating in Eurosystem credit operations should be allowed to increase current levels of own-use of government-guaranteed bank bonds subject to the ex-ante approval of the Governing Council in exceptional circumstances.”

As a result, the Governing Council adopted the following change to its collateral rules, effective immediately:
“The following Article 4b is inserted in Decision ECB/2011/25:
Acceptance of government-guaranteed bank bonds
1. Counterparties that issue eligible bank bonds guaranteed by an EEA public sector entity with the right to impose taxes may not submit such bonds or similar bonds issued by closely linked entities as collateral for Eurosystem credit operations in excess of the nominal value of these bonds already submitted as collateral on the day this Decision enters into force.

2. In exceptional cases, the Governing Council may decide on derogations from the requirement laid down in paragraph 1. A request for a derogation shall be accompanied by a funding plan.”

Source: ECB



and....




http://www.zerohedge.com/news/and-now-fed-gets-dragged-lieborgate


And Now The Fed Gets Dragged Into LiEborgate

Tyler Durden's picture
Submitted by Tyler Durden on 07/03/2012 15:05 -0400




As was first reported two days ago, and confirmed today, Barclays' natural response to allegations it single-handedly manipulated the interest rate complex for up to $500 trillion notional in IR-sensitive swaps and other products (it didn't - everyone else did it too), was to drag everyone into the scandal, starting off with the Bank of England (and about to dragWhitehall into it too), and specifically the man who was next in line for governorship of the English Central Bank: Paul Tucker. What does this mean? Well, as we suggested also two days ago, now that the natural succession path at the BOE has been terminally derailed, it brings up those two other gentlemen already brought up previously as potential future heads of the BOE, both of whom just happened to work, or still do, at... Goldman Sachs:  Canada's Mark Carney or Goldman's Jim O'Neil.Granted both have denied press speculation they will replace Mervyn King, but it's not like it would be the first time a banker lied to anyone now, would it (and makes one wonder if this whole affair was not merely orchestrated by the Squid from the get go... but no, that would be a 'conspiracy theory'.) Yet the fact that Goldman is hell bent on global domination by stretching its tentacles into every monetary policy administration is no secret: it is only a matter of time before GS also runs the English CTRL-P macros. More interesting is that in addition to the BOE, Barclays today also dragged America's very own Federal Reserve into the fray.
From MarketWatch:
Barclays also said in the document that the lender believed other banks were making Libor submissions that were too low during the credit crunch. “The evidence shows that the intent was to protect Barclays from the unfounded negative perceptions by bringing Barclays Libor quotes closer to the pack but not to affect the ultimate rate,” the bank said.

Barclays also cited subsequent research by the New York Federal Reserve staff members that, according to the lender, concluded that banks’ Libor quotes were systematically below their borrowing rates by 39 basis points after the Lehman bankruptcy. “Barclays own submissions for tenors of 1 month to 1 year Libor were higher than actual Barclays trades on 97% of the occasions when Barclays had actual trades during the financial crisis,” the lender said.

Translating the bolded: the Fed knew all along that Barclays self-reported levels were impossible. And did nothing. Which of course was not an issue until 2 days ago. Now that heads are rolling, it is.

So we wonder: will the captured and corrupt congressional critters even pretend to have the guts to escalate LiEborgate on US soil, where the real bodies are buried, or will everyone continue to tiptoe around the issue, hoping it just blows off on its own? If the latter, look for many new and exciting$0.99 apps to hit the iTunes store in the next 12-24 hours. After all must keep the fat, lazy, easily distracted muppets, occupied with cool retina displays and even cooler games where stuff happens fast without draining the battery for hours.


and....

http://hat4uk.wordpress.com/2012/07/03/barclays-the-boe-del-missier-resigns-as-web-of-deceit-unravels-32/


JULY 3, 2012 · 3:57 PM
↓ Jump to Comments

BARCLAYS & The BoE: Del Missier resigns as web of deceit unravels

Lie upon lie, until nobody knows the truth

Amidst jaw-dropping attempts to treat the British public as if they all had a collective IQ of 44, The Bank of England, The Treasury, the Chancellor, Bob Diamond and Jerry Del Missier all made a game attempt to suggest this afternoon that none of them had lied at all about anything.
It truly is Malice in Blunderland.
Jerry del Missier, the co-head of Barclays investment bank, today resigned “because he’s fed up of the endless Libor lies” according to Slog and numerous other MSM sources. This was the Flash Harry who, it seems, (this from the Telegraph) ‘was the senior manager who misinterpreted the comments of chief executive Bob Diamond after he came off a call in October 2008 with Paul Tucker, Deputy Governor of the Bank of England’ – Diamond having last week said to colleagues he hadn’t passed on any message other than the order he was given.
But the Telegraph continues, ‘Due to that misinterpretation, Mr del Missier told staff that they had been instructed by the Bank to deliberately lie about their Libor submissions.’
Is there anyone on the planet who really believes an instruction as mega as this one stood a snowball’s chance in Hell of being ‘misinterpreted’? You’re Bob Diamond right, Master of the Milky Way and do not accept Imposters: and one of the few bigger dicks than you in the Galaxy rings up to say, lie your head off about Libor or we’re all dead. What’s to misinterpret?
“Oh, Libor you said – I’m sorry Mr Tucker, I thought you said Lie more. Silly me getting that wrong, what with so much at stake an’ all.”
So anyway, Diamond Bob passes on the message to Jerry.
“Oh,” says Jerry last week, a mere four years later, “You meant lie about therate? Aw shucks Bobby, ah dun thought yo’ wuz tellin’ me ter lie about the date. Jeez boss, I’m sorry. Guess I better resign”.
What utter and complete bollocks. This is the Nixon White House with added neck.
Zero Hedge’s Tyler Durden notes this afternoon, ‘The politicians, who know their secrets are safe if only for a little longer, are delighted’. He’s right on the money.
The Slog sticks by what it was told over a week ago by three separate high-ups in this sector….people who are also sick to death of Lie-BorGate: this caper could not have been organised without Central Bank cooperation at least – and very probably resulted from a CB initiative – see my Slogpost of last week.
Tyler Durden refers to Diamond and Del Missier as ‘casualties’. Jawohl: Georg von Ozzborn vishes to tell ze Red Cross zat zey vair most unfortunately shot vile tryink to escape.
But now with Diamond deciding to go through with the Select Committee testimony tomorrow, that spot is a must see.
Related: Knight escapes from BBA scandal just in time as BIS also seen to have lied. (It’s a shame this piece was overshadowed by the Bob & Jerry Show, as it is crucial to undertanding the international and politcially woven nature of this manipulation. )


http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9374167/Stage-set-for-fireworks-after-Barclays-board-meltdown.html


Alistair Osborne
By , Business Editor
8:22PM BST 03 Jul 2012
Comments22 Comments
Never before has the board of a major British company imploded so spectacularly.
When last Friday night Barclays Bank directors retired for the weekend, they were still calculating they could ride out the storm.
The bank had been caught rigging interest rates. It had coughed up £290m to settle with regulators and seen the shares slide 15pc in a day.
But, despite the calls for the heads of chief executive Bob Diamond and chairman Marcus Agius, Barclays insisted the pair were going nowhere – and neither was Jerry del Missier, the chief operating officer.
Four days later, all three had quit – though, in one of the more bizarre episodes in UK corporate life Agius resigned on Monday only to return a day later in a temporarily bigger role.



and....


http://www.zerohedge.com/news/bank-england-made-me-do-it


The Bank Of England Made Me Do It

Tyler Durden's picture
Submitted by Tyler Durden on 07/03/2012 10:29 -0400




Wonder who was pushing Barclays to manipulate its rate? Why none other than the English Fed. From BBG:
  • BARCLAYS SAYS BANK OF ENGLAND CALLED ON OCT. 29, 2008 ON LIBOR
  • BARCLAYS SAYS DIAMOND MADE NOTE OF CALL
  • BARCLAYS SAYS DIAMOND RECEIVED CALL FROM PAUL TUCKER
  • BARCLAYS SAYS TUCKER SAID `CERTAIN' BARCLAYS DIDN'T NEED ADVICE
  • BARCLAYS SAYS TUCKER SAIDDIDN'T ALWAYS NEED TO BE SO HIGH (Supposedly LIBOR)
    • BARCLAYS PROVIDES COPY OF DIAMOND'S CALL NOTE
    • BARCLAYS SAYS DIAMOND DIDN'T BELIEVE HE HAD GOT INSTRUCTION
    • BARCLAYS SAYS DEL MISSIER CONCLUDED INSTRUCTION HAD BEEN GIVEN
    • BARCLAYS SAYS DEL MISSIER TOLD RATE SETTERS TO LOWER RATES
    In other words, a central banks was directly and indirectly involved in manipulating interest rates. Say it isn't so. Fast forward two months when the BOE's Tucker testifies that the Chairsatan made him do it.
    And below is the "note"

and.....


http://www.zerohedge.com/news/barclays-ceo-and-coo-are-lie-borgate-casualties-two-and-three


Barclays CEO And COO Are Lie-borgate Casualties Two And Three

Tyler Durden's picture
Submitted by Tyler Durden on 07/03/2012 06:51 -0400




First the Chairman Marcus Agius, and now both Barclays' CEO Bob Diamond and the COO del Misser are quitting. Full sweep.
From Reuters:
Barclays Plc said its Chief Executive Bob Diamond had quit with immediate effect following a market-rigging scandal.

Outgoing chairman Marcus Agius, who announced his resignation on Monday, will become full-time chairman and lead the search for a new chief executive.

Barclays' newly appointed Chief Operating Officer, Jerry del Missier, is set to follow his Chief Executive Bob Diamond and resign from the bank, a source familiar with the matter told Reuters.

Barclays declined to comment and del Missier could not immediately be reached.

Del Missier has for years been a key lieutenant of Diamond, helping him build up the Barclays Capital investment bank. Del Missier was appointed COO last month.

Diamond resigned with immediate effect earlier on Tuesday over an interest rate-rigging scandal in a sudden move.

The politicians, who know their secrets are safe if only for a little longer, are delighted:

British finance minister George Osborne welcomed the resignation of Barclays Chief Executive Bob Diamond on Tuesday, saying he hoped it was the first step in a new culture of responsible British banking.

"I think it's the right decision for Barclays, I think it's the right decision for the country because we need Barclays bank focussed on lending to our economy and not distracted by this argument about who should be in charge," Osborne told BBC Radio.

"I hope it's a first step to a new culture of responsibility in British banking."

Just how deep does the Lieborgate rabbit hole go if it resulted in a complete turnover of executive management at just the first named bank? Whichever bank is the US equivalent of Barclays in the US better have a succession plan.


and...


http://www.telegraph.co.uk/finance/debt-crisis-live/9371541/Debt-crisis-live.html


12.13 According to a source quoted by Reuters, Italy's prime minister,Mario Monti, expects the savings from spending cuts this year to be "much higher" than €4.2bn.
The government is expected to present a package of state spending cuts this week that it wants to pass in place of a 2-percentage-point increase in VAT which is otherwise scheduled to come into force in October.
11.32 Ireland is set to auction bills this week in its first public sale since September 2010, about two months before the nation requested an international bailout.
Bloomberg reported that the National Treasury Management Agency will sell €500m of treasury bills on Thursday.
11.06 Over in Cyprus, European Union and International Monetary Fund representatives have begun meetings with bank and government officials.
The finance ministry said:
QuoteIt’s important to emphasize that this team, during this phase, is restricted to examining the whole situation. It’s purely exploratory in nature and there will be no negotiation or discussion of measures.
Cyprus, which has just taken over the presidency of the European Central Bank, last week applied for aid from the EU bailout fund and the IMF. Its aid package could total up to €10bn.
10.49 Christian Noyer, a member of the European Central Bank governing council, has been speaking this morning. Reuters has all the details, reporting that he said a proposed fund to guarantee eurozone bank deposits would need massive firepower and the ability to borrow on financial markets with the guarantee of member states.
Speaking in Paris, Mr Noyer called for:
QuoteA deposit guarantee scheme, with massive firepower, provided that it could collect an annual contribution from all euro area banks and could borrow on the markets with a supranational guarantee.
He also urged unified supervision of all euro zone banks, not just big ones, headed by the ECB but with day-to-day implementation carried out via national central banks.
He added the third pillar of the proposed "banking union", a unified banking resolution scheme, could have either a separate fund or be mixed with the bank guarantee fund.
10.29 In the eurozone, factory prices fell more than expected in May, dipping 0.5pc from April. The fall came as the cost of energy dropped sharply.
10.24 In the UK, construction activity has fallen at its fastest pace in two-and-a-half years. The PMI slipped to 48.2 in June from 54.4 in May.
Meanwhile, mortgage approvals for house purchase fell to 51,098 from 51,627, a smaller decline than economists had forecast.
10.04 Over in Greece, the head of the taskforce that is helping to rebuild the country's economy has said that Greece must prioritise paying out arrears it has racked up with suppliers to get funds flowing again to cash-strapped businesses. Horst Reichenbach told a conference in Athens:
QuoteThe first step [in improving access to financing] is to pay the arrears that have accumulated.
It would be very difficult to really improve the situation of the Greek economy even with these reforms if the very difficult situation of access to finance is not tackled
Greece owes over £6bn to suppliers in industries ranging from pharmaceuticals to construction, local officials estimate.
09.34 Some good news out of Spain. Unemployment there fell by nearly 100,000 people in June as the tourism season kicked in. The number of people registered as unemployed fell by 98,853, or 2.1pc, to 4.62m from the previous month, the Labour Ministry said in a statement.
08.54 More flashes appearing on Reuters from Spain's economy minister. He has also said this morning that individual eurozone countries have no blocking capacity over European summit agreements and that aid for state-rescued banks in Spain could come within weeks.
08.25 A flash appears on Reuters, with Spain's economy ministersaying the country is to make additional efforts to achieve its deficit targets.
Spain has what the IMF recently dubbed a "very ambitious 5.3pc of GDP deficit target for 2012!. It was watered down from 4.4pc to 5.3pc in March amid evidence that the initial target was impossible to reach.
07.32 Just when you thought the eurozone was closer to solving its debt crisis - along comes a party pooper. This time, in the shape of Finland.
 A Finnish government report on last week’s milestone European Summit showed that prime minister Jyrki Katainen opposed plans to give the European Stability Mechanism (ESM) the option to buy government bonds in the secondary market. On Monday a spokesman said Finland’s stance was supported by the Netherlands too.
“Finland finds it an inefficient way to stabilise markets,” said a senior Finnish government official told reporters.
A spokesman for the Dutch finance ministry said: “The Prime Minister said on June 29 he is not in favour of buying up bonds. Using the existing instruments to buy up bonds will be expensive and can only be done if there is unanimity (between member states). That means the Netherlands would need to vote in favour."


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