Posts tagged Collapse

http://www.dailyfinance.com/2009/09/13/one-year-after-crisis-banks-back-to-risk-taking/EW YORK (Sept. 13) – A year after the financial system is s’ almost collapsed, the nation’s largest banks bigger and regain their appetite for risque.Goldman Sachs, JPMorgan Chase and others – who received ten billion dollars in federal aid – are once again bet big on bonds, commodities and exotic financial products, trading has virtually during the crisis financière.C Wall Street is making money again in the same way as the thrust of the banking system in the chaos no longer .- Last fall, a cause for concern on many levels, financial analysts and government officials say there were no significant changes were on the federal rules for their behavior. The proposals were made to better monitor the financial system and the banks sell the police products to consumers, were held by lobbyists, legislators and regulators to protect turf .- Through mergers and bankruptcy of Lehman Brothers, whose mammoth banks near collapse have caused the government bailouts will receive even more, so the risk they pose to the financial system. And they do continue to Paris, a whole lot more valuable than the capital that they have at hand in order to hedge against possible losses .- The government’s response to the merger last year was to move everything you need to the financial system to collapse to protect – to encourage a precedent, to take more risks sector privé.Lawrence Summers, director of the White House National Economic Council, said an overhaul of financial regulation would require as quickly as possible to keep the financial system in the long term safety in the. “You can not count the scars of past crises in order to ensure practices that lead to future crises,” said another crisis Summers.Personne Exchange rate risk is short term. Rather, the concern is what happens over time developed the trust banks and the memory of the financial crisis pales in 2008. Will they be in paris stack, so that new forms of speculative bubbles and – as happened with Mortgage-Backed Securities – threatens their loss to the banks and the economy in general, “We see the same kind of behavior by banks, resulting in a huge and frightening parallel run “? Said Simon Johnson, former chief economist of the IMF international.Certains risk appetite is good. If banks are willing to invest in companies or lend to home buyers, which nourishes economic growth through job creation and consumption, nutrition a cycle of expansion. The problem is if the banks are looking for profits drives them to many risks. In the case of the real estate bubble that burst last year, the banks lent freely to consumers with low credit and too much on complex financial instruments linked to mortgages. . When property prices in the south, including the health industry financière.Parce the divisions of the largest banks, “each with their Paris, their fortunes intertwined, the collapse can threaten each other – and others – if it is not in a position to his tries dettes.Ce counterparty risk is to be paid is known as a major reason the Obama administration plan regulatory reform calls announced the creation of a “systemic risk regulator.” The government and the capital requirements more difficult for the banks, dealers said from the shores of the exotic financial products without . Compliance with enough money in reserves is one of the main causes of the crisis, Finance Minister Timothy Geithner urged the Group of 20 nations – which meets this month in Pittsburgh – have to agree on the level of new capital by the end of 2010 and continued two years later Geithner. did not say how much additional capital the banks should be required to keep on main.Selon data for April-June quarter, as banks return to heavily on their trading desks for income .- In the fourth quarter of 2008, when the to beat financial crisis even the most demanding bankers carefully done, quit Goldman trade in risky assets fast. But in the second quarter of 2009, retail sales rose from nearly 50 percent of total sales, closer to where it two years ago before the recession began. JP Morgan’s dependence trading profit showed a similar trend .- In the second quarter average of the five largest banks possible losses from a trading day $ 1000000000 to 76 percent two years ago was to build réglementaires.Le government not only banks saw their habits back and coasting There is a thriving catalyst in the process of the Federal Reserve, the Treasury and the Federal Deposit Insurance Corp. for two -.. Obama and Bush was – have billions of dollars available to banks by the largest bailouts, low-cost loans and the loss to make guarantees to stabilize the system FAIL Lehman Brothers financier.Le made – the largest bankruptcy of American history – and the panic sale of Bear Stearns to JPMorgan and Merrill Lynch to Bank of America, have also turned to Wall Street investment banks are surviving fewer competitors and the share of the largest banks marché.Cinq -. Goldman, JP Morgan, Wells Fargo, Citigroup and Bank of America posted second quarter profits -. of $ 13000000000 This is more than double what they made in the second quarter of the year 2008 and almost two-thirds as much as $ 20.7 billion it earned in the second quarter of 2007 – when the economy was forte.En Meanwhile, Bank of America and Wells Fargo are now 41 percent of all home loans guaranteed by Fannie Mae and Freddie Mac according to Inside Mortgage Finance. The banks have $ 284 billion in loans in the first half of this year against $ 124 billion during the same period last year. “The big banks are now stronger than before,” said Johnson, now a professor at “The major banks are now stronger than before, “said Johnson, now a professor at the Massachusetts Institute of Technology Sloan School of Management.” Their market share increased, and they have much influence in Washington. “Reversal of Wall Street will also be a rally in the stock market that led the S & P 500 by nearly 54 percent since March 9, he helped with the low point of 12 ans.Malgré return to profitability, are not the days high-octane before the crisis. To be eligible for support for the government, the largest Wall Street firms are allowed to keep their income by borrowing up to 30 times the value of their assets to Paris on stocks, bonds and other investissements.Entreprises of supercharge say put Wall Street bankers and traders supported, they have also noticed changes. This, not so much consumers spend on food, beverages and entertainment, as it has over the years fastes.Au Fraunces Tavern, an upscale bar just around the corner by the New York Stock Exchange, Wall Street workers who used rarely to 25 glasses of port $ drink in those days. “Well, we happy hours,” said Damon Testaverde, one of the owners of the Tavern Fraunces. don ‘We’ve’ still never done, there is a bit less about the institutions’ But one fundamental thing on Wall Street is not changed: the major banks and dealers are still creative solutions – some say speculative – the means to win … you are still packaging risky mortgages into securities and sell them to investors, the higher returns by buying securities in connection with risky mortgages may earn. It is the practice that inflated the housing bubble and financial pain eventually spread throughout the monde.D In some ways, the banks sell the government continues to encourage risky securities, helped: Since the crisis broke out, the emergency programs of the federal government have helped the banks of the mycoldfeet faillite.Réponse

hold I’m crazy
in Congress made promises that would be the rules and monitoring are implemented, but you are surprised? Besides, what was your question? your facts are right on Tho.