French minister says IMF boss Christine Lagarde ‘must resign’ if charged with fraud, embezzlement scam
Christine Lagarde, photo by International Students’ Committee, via Wikimedia Commons
Najat Vallaud-Belkacem, who holds the women’s rights portfolio, spoke out as Mrs Lagarde was questioned by magistrates over claims that she had squandered €403 million of taxpayers’ money in an illegal deal.
French news outlets say it is likely that the managing director of the IMF will be placed under investigation by the Court of Justice of the Republic (CJR) – the equivalent of charging a suspect in the UK – for allegedly aiding and abetting embezzlement and fraud.
Read full article
http://globaleconomicanalysis.blogspot.com/2013/05/another-warning-call-for-depositors.html
Banks rolled over €200bn of loans because they could not pay debt on time, pretending the loans were current, and the Bank of Spain estimates the risk at a mere €10bn.
Who do they think they are they fooling?
Will 70% of those loans be paid back? 50%? 20%? I don't know but I strongly suggest it sure will not be 95%.
Given the perpetual over-optimism on Spanish bank losses, I estimate there is a 0% chance the losses on this disclosure will be as little as €10bn.
That said, I do not know what the existing loan loss provisions are, but if they are high enough (extremely doubtful), then there is some chance the losses will be on the order of €30bn or so (on the general principle things are typically 300% worse than the optimistic scenario).
This does not factor in losses on Spanish government bonds when Spain eventually seeks a massive bailout. Realistically, Spanish banks are insolvent.
Another Warning Call!
By the way, this is yet another warning call "If you have money in Spanish banks, move it somewhere else immediately!"
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com/2013/05/another-warning-call-for-depositors.html
Thursday, May 23, 2013 2:34 PM
Another Warning Call for Depositors! Bank of Spain Says Spanish Banks Need €10bn More Loan Loss Provisions; Mish Asks €10bn or €100bn?
Here's an optimistic headline on the Financial Times that could easily be off by a factor of 10 or more: Spain’s banks need €10bn more provisions.
Spanish banks will need to put aside extra provisions of up to €10bn to cover loans that borrowers will struggle to repay, according to an internal estimate by the Bank of Spain.€10bn or €100bn?
According to recent data, Spanish banks rolled over more than €200bn of loans before they expired – often because corporate borrowers would be unable to repay their debt on time and in full. The €10bn estimate is the first official assessment of the likely impact of the central bank’s new approach towards these refinanced loans.
The Bank of Spain believes that the risks emanating from this practice, known as “extend and pretend”, have not been fully covered and is pressing all banks to reclassify their refinanced loans according to tighter standards by the end of September. The new regime will make it harder for banks to treat refinanced loans as if they were performing normally, in turn forcing lenders to take additional provisions.
“Our banks will need more provisions,” a senior official at the Bank of Spain told the Financial Times. “The provisions will affect their results, but the question is by how much. We cannot know for sure but we think the impact will be between €5bn and €10bn [in provisions] across the system.”
Banks rolled over €200bn of loans because they could not pay debt on time, pretending the loans were current, and the Bank of Spain estimates the risk at a mere €10bn.
Who do they think they are they fooling?
Will 70% of those loans be paid back? 50%? 20%? I don't know but I strongly suggest it sure will not be 95%.
Given the perpetual over-optimism on Spanish bank losses, I estimate there is a 0% chance the losses on this disclosure will be as little as €10bn.
That said, I do not know what the existing loan loss provisions are, but if they are high enough (extremely doubtful), then there is some chance the losses will be on the order of €30bn or so (on the general principle things are typically 300% worse than the optimistic scenario).
This does not factor in losses on Spanish government bonds when Spain eventually seeks a massive bailout. Realistically, Spanish banks are insolvent.
Another Warning Call!
By the way, this is yet another warning call "If you have money in Spanish banks, move it somewhere else immediately!"
Mike "Mish" Shedlock
Sweden riots expose ugly side of ‘Nordic model’
The scene of Sweden’s worst riots in years, Husby is on the surface at least a typically neat suburb of colorful playgrounds, manicured parks and low rise apartment buildings.
Conversations with residents of this immigrant neighborhood soon bring tales of fruitless job hunts, police harassment, racial taunts and a feeling of living at the margins that are at odds with Sweden’s reputation for openness and tolerance.
Riots that began in Husby have spread across Stockholm over the last four nights in scenes reminiscent of London in 2011 and Paris in 2005 – outbursts with their roots in segregation, neglect and poverty. The Swedish model of welfare – such as its 480 days of parental leave for each child – hides another side.
Muslim connected to British intelligence says there will be more “lone wolf” attacks
Kurt Nimmo
Infowars.com
May 23, 2013
Infowars.com
May 23, 2013
Anjem Choudary. Photo: Snapperjack.
Anjem Choudary, described as a “hate preacher” byThe Daily Mail, has called the alleged Woolwich killer Michael Adebolajo a man of “impeccable character” and has warned there will be more “lone wolf” attacks so long as British troops remain in Afghanistan.
“That is the presence of British forces in Muslim countries and the atrocities they’ve committed, and how the Muslim community in this country are under pressure due to draconian laws which have tried to silence them,” Choudary said following the attack near the Woolwich Barracks. He said he knew Adebolajo and had once attended the same mosque with him.
Choudary, along with Omar Bakri Muhammad, led the Islamic organization al-Muhajiroun. The group was proscribed under the UK Terrorism Act 2000 along with Islam4UK, another group led byChoudary.
Prior to the July 7, 2005 bombings in London,Bakri admitted to journalist Ron Suskind that he worked for British intelligence. Prior to the Suskind revelation, Roland Jacquard, a French counterterrorism expert and government adviser, said that “every al-Qaeda operative recently arrested or identified in Europe had come into contact with Bakri at some time or other.”
Bakri’s background is similar to another British intelligence plant, Abu Hamza al-Masri. The London-based imam worked with two branches of the British security services, the Special Branch of the British police and MI5, beginning in 1997.
Another radical Muslim imam, Abu Qatada, began cooperating with MI5 agents in 1996. Qatada was allegedly on al-Qaeda’s fatwa committee and videos of his sermons were discovered in suspected 9/11 hikacker Mohamed Atta’s Hamburg apartment. Richard Reid and Zacarias Moussaoui were reportedlyAbu Qatada converts.
Anjem Choudary’s shady connection to radical Muslims linked to British intelligence reveal that his commentary on the murder may be part of a larger script. It likely includes further enlargement of Britain’s terror laws which are invariably expanded after sensationalistic attacks. The Anti-terrorism, Crime and Security Act 2001 was introduced after the September 11 attacks in the United States and the Terrorism Act 2006 was enacted after the London bombings. British citizens should expect additional legislation rolling back their civil liberties following the latest incident.
http://www.zerohedge.com/news/2013-05-23/european-stocks-dive-most-10-months
European Stocks Dive Most In 10 Months
There was quite a bit of dispersion among European equity indices today (with Italy worst and Spain actually holding up - albeit down 1.4%) but the European equivalent of the S&P 500 (the BE500) dropped 2% - its biggest single-day plunge in 10 months. Credit markets - just as in the US - have been warning of a disconnect for two weeks and today's equity dive has more than halved that divergence. European sovereigns are wider by 10-15bps. Europe's VIX is over 2 vols higher at 18.4% (its highest in a month). European financial stocks dropped by their most in 3 months and European high-yield credit worsened by its most in 3 months. A late-day ramp made things alook a little better than they had earlier with a 100 pip rally in EURUSD off earlier lows seemingly providing some help.
European stocks dropped their most in 10 months...
as stocks caught down to credit...
Charts: Bloomberg
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10077437/HSBCs-1.9bn-money-laundering-settlement-could-be-rejected.html
( will believe this when I see it rejected.....)
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10077437/HSBCs-1.9bn-money-laundering-settlement-could-be-rejected.html
( will believe this when I see it rejected.....)
Judge John Gleeson is considering cancelling December’s so-called deferred prosecution agreement that gave HSBC immunity from claims it allowed terrorists to move at least $881m (£584m) around the financial system.
This could leaving the bank open to criminal prosecution and a ban from operating in America. However, HSBC disputes this.
The US Department of Justice (DoJ) is reportedly challenging Mr Gleeson’s need to sign off on the deal. The judge last mentioned the case in February, stating that he had not yet approved nor disapproved of the settlement.
In a statement, HSBC said: “For more than two years, our new leadership team in both New York and London has been implementing reforms and new controls, investing in compliance systems and staff, and putting in place the most effective global standards across our network to combat financial crime on a global basis.
“We are focused on taking all necessary steps to fulfill our obligation under the agreements with the US and UK governments, and on implementing effective global standards across HSBC.”
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