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This is ridiculous. Fortis reported a 28 billions EURO loss, still their shares are up and so are the shares of all the others banks... RIDICULOUS.
Originally posted by marg6043
If now we stood at 10 trillion dollars of debt been added this in one year with 6 trillions just in the first two months of this year, now the amount was raised to 12. some trillions and the derivative debt was up to 50 trillions and some perhaps in the US alone, the 200 trillion means world wide?
This numbers are getting to hard to understand, how much can US afford of all this debt?
Derivatives activity in the U.S. banking system is dominated by a small group of large financial institutions. Five large commercial banks represent 96% of the total industry notional amount and 81% of industry net current
Japan's Recession Deepens as Jobless Rate Jumps to 3-Year High, Wages Fall
March 31 (Bloomberg) -- Japan’s recession deepened as the unemployment rate surged to a three-year high, wages fell and job openings plunged at the fastest pace in three decades.
The jobless rate rose to 4.4 percent last month from 4.1 percent in January, the statistics bureau said today in Tokyo. The ratio of jobs available to each applicant tumbled to 0.59 from 0.67, the biggest drop since 1974, the Labor Ministry said.
Companies from Toyota Motor Corp. to NEC Corp. are firing thousands of workers, increasing pressure on the government to give more assistance to the nation’s jobless, most of whom don’t receive benefits. Prime Minister Taro Aso said the government plans to unveil a stimulus package in mid-April that will include aid for households.
“We don’t think this is the ceiling for the unemployment rate,” said Kyohei Morita, chief economist at Barclays Capital in Tokyo, who expects it to reach a record 5.7 percent this year. “Manufacturers are going to keep cutting costs by suppressing employment.”
Wages slid 2.7 percent as a record slump in exports forced manufacturers to slash production and overtime. Household spending fell 3.5 percent, a 12th monthly decline, indicating domestic demand is unlikely to make up for the collapse in exports. Purchases by consumers account for more than half of the economy.
More at Links...
Australian Central Bank Abandons Growth Forecast, Says Recession Is Likely
March 31 (Bloomberg) -- Australia’s economy will probably contract this year for the first time in almost two decades amid slumping global demand for exports, central bank Deputy Governor Ric Battellino said.
“There are limits on how much we can insulate ourselves from what is happening abroad, and therefore there are probably still some difficult times ahead,” Battellino told a conference in Brisbane today. Gross domestic product is “likely to fall in 2009,” he said. In February, the bank tipped 0.5 percent growth.
Commentary: Banks could write up dead assets under Frank plan
NEW YORK (MarketWatch) -- Mark-to-market accounting may be dead on Wall Street.
And dead assets may soon have new life via write-ups. Call them zombie assets.
Zombie assets at zombie banks could be the reality should Rep. Barney Frank, D-Mass., get his way. He wants the Securities and Exchange Commission to consider allowing banks to estimate the value of dead assets on their balance sheets.
As part of the deal, Frank is pushing for more transparency from the banks about securities they hold.
Frank, chairman of the House Financial Services Committee, said Tuesday he plans to meet with the SEC regarding a possible rule change. See full story.
The term zombie refers to a banking system that is dead, but kept functioning, or undead, through government intervention.
What makes the Frank revision different from other proposed changes to mark-to-market is its retroactive component. Banks have written off hundreds of billions of assets that can't be sold in the market, but may have value because they contain loans that are still performing. In other words, those assets have a value if they are held to maturity.
The danger with any plan to abandon mark-to-market accounting is that the banks will mark up assets that really don't have value. Even if they accurately assess values, investors may become skeptical about the value of all assets. Banks haven't exactly burnished confidence by writing down $1 trillion during the last 18 months.
Some estimate Citigroup Inc. could see a 20% increase in profits in the future and could erase some past losses.
If the accounting changes come to pass, we can call them zombie profits.
Permanent OMOs: Agency
Fed purchases $3.223 billion in agency coupons
The current program to purchase direct obligations from housing-related GSEs is intended to reduce the cost and increase the availability of credit for the purchase of homes.
Operation 1 - RESULTS
Operation Date: 03/31/2009
Operation Type: Outright Agency Coupon Purchase
Release Time: 10:30 AM
Close Time: 11:00 AM
Settlement Date: 04/01/2009
Total Par Amt Accepted (mlns) : $3,223
Total Par Amt Submitted (mlns) : $7,400
Security Description Par Amt Accepted ($)
FNMA 04.375 10/15/15 0
FHLMC 04.750 11/17/15 0
FHLMC 04.750 01/19/16 267,000,000
FNMA 05.000 03/15/16 472,000,000
FHLMC 05.250 04/18/16 337,000,000
FHLB 05.375 05/18/16 317,000,000
FNMA 05.375 07/15/16 39,000,000
FHLMC 05.500 07/18/16 268,000,000
FNMA 05.250 09/15/16 222,000,000
FHLMC 05.125 10/18/16 0
FNMA 04.875 12/15/16 275,000,000
FHLB 04.750 12/16/16 0
FNMA 05.000 02/13/17 129,000,000
FHLMC 05.000 02/16/17 225,000,000
FHLMC 05.000 04/18/17 309,000,000
FNMA 05.000 05/11/17 79,000,000
FHLB 04.875 05/17/17 126,000,000
FHLMC 05.500 08/23/17 20,000,000
FHLB 05.000 11/17/17 0
FHLMC 04.875 06/13/18 99,000,000
FNMA 06.250 05/15/29 0
FNMA 07.125 01/15/30 6,000,000
FNMA 07.250 05/15/30 13,000,000
FNMA 06.625 11/15/30 20,000,000
FHLMC 06.750 03/15/31 0
FHLMC 06.250 07/15/32 0
In the above, the letter "C" following security description denotes that the security is callable.