Finland – may be a small country; but their problems are indicative of much larger general banking problem in the European Union. The players are (loans and deposit give much the same result): 1) Pohjola Bank plc (HEL:POH1S) 1/3 2) Nordea Bank AB (STO:NDA-SEK) 1/3 3) Danske Bank A/S (CPH:DANSKE) Bank 1/8 4) Swedbank AB (STO:SWED-A) 1/20 5) Others (a lot of them): 1/6 Total bank loans for the county: 170 bio. EUR. What is...
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Investors dump bank shares. The Guardian has: Quote: One large shareholder in banking stocks warned that it was considering ditching all its investments in the sector in the wake of the Libor scandal and the money laundering allegations at HSBC – which were compounded by the allegations against Standard Chartered. Comment: What did you expect? If a bank cheats its costumers – what should keep them from cheating their shareholders? That begs the next...
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Official Danish interest rates are now negative. First some data from the Nationalbanken (Danish Central Bank): Lending rate : +.2% Deposit rate: -.2% For starters: The lowering of interest rates is a result of the European Central Bank (ECB)’s lowering of rates earlier today. But that does not explain the previous Danish lowering of interest rates. The normal statements from the propaganda offices of the banks are that the Spanish situation...
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The Moody’s Corporation (NYSE:MCO) downgrade. Downgrades by rating agencies are a symptom rather than a cause. References from your mother are generally not conclusive in a job application; but when can’t even pay people to say something nice about you – then there probably isn’t very nice things to say. The implication is that a credit rating is the best possible reference – in the sense, that somebody has for money really done their utmost...
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Report: When: Friday afternoon 20th april 2012 and weekend What: The Danish Central Bank received 7 day deposits of 200 bio. DKK (40-50 bio. USD) FROM undisclosed financial institutes banks in Denmark. The Danish Central Bank extended 3 year credits of 20 bio. DKK TO undisclosed banks in Denmark. During the weekend two bank were merged in two mergers with two other banks – none of the of any international significance. Chart of massive...
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Nykredit has dug up a dead old idea in real estate mortgage financing: The two tier loan – and done unspeakable things to it. And as bankers are the same all over the world it might be of general interest. The desperate manoeuvring contains some real information for the serious investor. The general “idea” is that you take a typically insolvent house owner with an 80% senior mortgage with next to no interest and...
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Never mind you can’t read it. Now Danske Bank admits to loaning 40 bio. DKK in the ECB. This is hardly a surprise to regular readers. The amount has been bandied around for about ½ a year in connection with Danske Bank – and is has been a bit difficult to trace it. First substantial clue was in an open consultation on a parliamentary committee from the prime minister Helle Thorning-Schmidt, where she had...
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We recently noted Denmark’s huge public debt crisis, which only does not seem like a crisis because the media ignores it. We have been following the situation in Denmark closely and have noted many problems, especially with Danske bank. Credit Write Downs reported yesterday that The Danish central bank mimicking the ECB’s recent actions, will provide 3-year loans to local banks. Below is our take on the issue: Sovereign bonds are always nice; but real estate...
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114 European banks get a punch on the nose – and we are talking major downgrades. Credit rating agencies are the subject of some debate as to the validity and timing of their evaluations. As banks pay for their rating it will always remain dubious. “You can’t buy love.” – Well money can get you something VERY similar. Be that as it may. But let’s look into it from a country perspective, Denmark: Danske...
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Danske Bank is reported by Danish newspapers to want to use the Euro stability fund granting cheap credit to banks for up to three years due to the disturbance Greece has caused. The Danish contribution, though not a part of the Euro-zone, has been reported to be 40 billion DKK. The move is somewhat surprising as a similar facility is available in the Danish Central Bank (Nationalbanken). Nationalbanken extends credits – for a similar...
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