The Fed says the Banks are safe.
March 15, 2013
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Nope. I don't know when and then there is the 16.69 trillion in only March. We are being saved by the Social Security Collection and all other Government Trust. Not good in the Derivatives area. Derivatives and Currency is 626 TRILLION dollars. Can the Banks survive that. Can the World?
Private Equity Crash Could Trigger Next Financial Crisis, Bank of England Warns
March 15, 2013 • 9:05AM
The Bank of England has issued a warning that the
huge amounts of
bad loans on the books of banks that lent to equity firms for their wild leveraged buyouts of corporations prior to the crisis, will be the trigger for the next financial crisis. The warning came from a report published today in the Quarterly Bulletin of the Bank of England, which added that the BOE would use its new role as the watchdog of the City of London to monitor private equity deals in future "episodes of exuberance" to prevent a repeat of the debt-driven takeover boom in the run-up to the banking crisis.
"In the mid-2000s, there was a dramatic increase in acquisitions of U.K. companies by private equity funds," the Bank said, according to today's Daily Telegraph. "Many of these buyouts, especially the larger ones, were highly leveraged and the increased indebtedness of such companies poses a risk to the stability of the financial system — a risk that is compounded by the need for companies to refinance
debt maturing over the next few years in an environment of much tighter credit conditions." The problem is that the banks that financed these deals, are giving "forbearance" to these companies despite the fact that much of this debt is bad, and fears that they might go bust. It added that refinancing could prove to be a new
"challenge" in 2014, which is the date that much of this debt comes into maturity.
The statement pointed out that this has created a "heightened fragility of the corporate sector."
1913 WORST YEAR EVER: 100 YRS OF PROGRESSIVE LIBERALISM.
1) The federal reserve is created.
2) 16th amendment reinstates the federal Income tax.
3) 17th Amendment kills federalism/state rights.
4) first TYRANT, Wilson Inaugurated.
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