With these large banks like Danske Bank you have a definite problem: Crossholding – where A owns B that owns C which owns A. That is one way of pumping up equity. This extends to loans where A lends B etc. and guarantees. As to assets you don’t have a clue: They depend on the state of impairment. That is why the Basel III rules prescribe somewhat objective measures for what a “bad” loan...
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Danske Bank A/S (CPH:DANSKE) (OTCMKTS:DNSKY) still seems to working under the misapprehension, that being classified as a “Systemic Important” (SIFI) monetary and financial institution is a good thing. It isn’t. Nils Bernstein On Danske Bank A/S (CPH:DANSKE) (OTCMKTS:DNSKY)’s Issue The former CB CEO Nils Bernstein was very explicit when he said in the wake of the unlimited guarantee issued to Danske Bank at the height of the crisis in 2008 that never again should such...
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I’ve just had occasion to look into the IMF: DENMARK STAFF REPORT FOR THE 2012 ARTICLE IV CONSULTATION Dated: December 20, 2012 From what I’ve been able to skim, the report is very useful for insomniacs. But what caught my attention was the authors of the report. Discussions took place in Copenhagen from October 25 through November 5, 2012. The staff comprised Mr. Dorsey (head), Mmes. Batini, Mordonu, Xiao, and Zoli (all EUR). Mr....
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Denmark has labelled all of its major banks as (Systemically important financial institutions) SIFIs or as many would term ‘too big to fail’. Denmark will likely up the capital requirements for its largest banks. The SIFI report lists the major Danish banks including, Danske Bank, Nykredit, Nordea Bank Danmark, Jyske Bank, BRFkredit and Sydbank This is just the summary. The full report is intended to be translated into English and might be found on the...
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Latvia is joining the Euro! Frankfurter Allgemeine Zeitung has: The criteria: The deficit is at 1½% – well under the criteria of 3%. Public debt is 42% – again safely under the allowed 60%. It has had its currency bolted to the EUR since 2005 – which is more than 2 years. The 10 year sovereign bond at 3½% interest and the emergency loan paid back 2 years ahead of time. Inflation is the...
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Update on Danske Bank A/S (CPH:DANSKE) (PINK:DNSKY). The Danish Bank Inspection report, dated summer 2012; but published February 2nd 2013: Quote: The Finance Inspection directed in compliance with § 152 in Law on Financial Activity of Danske Bank recommends the following: The bank must conform to a short term liquidity requirement using Liquidity Coverage Ratio-Standard (LCR)(according to Finance Inspection LCR specifications) as basis at 100 pct. rising to 110 pct. As of January 1st 2014. The...
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Europe’s finance ministers announces spring offensive. In Britain the Chancellor of the Exchequer Mr. George Osborne has angry words: Quote: The Chancellor pledges today to “reset” Britain’s banking system, warning that banks will be broken up if they ignore orders to ringfence their investment and retail banking divisions. At the same time in Germany: Bundesfinanzminister Wolfgang Schäuble is his usual smooth tongued, and presents a proposal: Quote: The basic idea with the law is the banks are...
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Sweden, is it an economic Mecca? First of all the financial side: Sweden has four banks which are as big as Danske Bank A/S (CPH:DANSKE) (PINK:DNSKY) –and even more ”international” as Danske Bank. Finnish banking is mainly Swedish. The banks had a severe crisis in the 1990′s with significant government intervention – even ownership. That crisis has never really been resolved – which can be seen on the housing market as well. Undoubtedly, the...
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Nordea Bank AB (STO:NDA-SEK) Danmark The Danish Bank Inspection “visited” Nordea Bank Danmark in November 2012, according to the official report from the Bank Inspection. Quote: The Bank Inspection had chosen 174 cases, partly a random sample of 75 business cases in the range of 50-500 mio. DKK, subjectively chosen business cases above ½ bio. DKK, shipping cases above 50 mio. DKK and leveraged finance cases over 10 mio. kr. Comment: They knew exactly what they...
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Costumers are fleeing the large banks in Britain The Guardian has: The figures are not very well harmonised: - Credit unions report 20.000 new accounts the last 6 months - Building societies 78.000 the last quarter - The Cooperative Bank has seen a 43% increase in switching to its current accounts One saving grace is that the Guardian has no pretence of doing anything but sensationalism without providing any sort of overview of the...
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The European problems with banks There are many large banks in Europe – even by world standards. The figures behind the graphs were picked up around the net, so they are probably not very accurate; but they are close enough for the purpose of giving the intelligent, but uninformed reader a rough idea of the larger issues. The size of the banks First there is the group of the very, very large with banks...
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