Skip to comments.Questions grow over banks as profit warnings pile up
Posted on 02/11/2016 6:18:56 PM PST by SkyPilot
PARIS (AP) -- Questions are growing over the financial health of banks, particularly in Europe and the U.S., as they face a toxic mix of low economic growth, bad loans and squeezed earnings.
France's Societe Generale became Thursday the latest bank to issue a confidence-shattering profit warning, which helped trigger a new sell-off in financial stocks. The bank saw its share price stumble 12 percent and major rivals like Deutsche Bank and UniCredit saw losses of nearly 10 percent.
European banks are not the only ones to suffer. Japanese bank Mitsubishi Financial fell 7 percent on Thursday. In the U.S., Morgan Stanley, Citigroup and Bank of America are down more than 30 percent so far this year.
Among the top concerns is that the global economy will weaken more than expected, souring some of the loans that banks have issued to companies around the world - particularly in distressed sectors like the energy industry. U.S. banks have tens of billions of exposure to loans made to energy companies, who have found themselves unable to pay back their debts due to low energy prices.
Mike van Dulken, head of research at Accendo Markets, says the latest weakness in bank stocks stems from U.S. Federal Reserve Chair Janet Yellen "warning on current financial market turbulence and suggesting further rate hikes could be delayed, which added to already raised anxiety about the health of the global economy."
On Wednesday, Yellen cautioned that global weakness and falling financial markets could depress the U.S. economy's growth and slow the pace of Fed interest rate hikes. That's a particular concern as the U.S. economy has been one of the few bright spots in the global economy, which is seeing a slowdown in China and stagnation in Japan and Europe.
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Deutsche Bank is going to collapse. These articles are full of leaks that are telegraphing that punch. That means the collapse of the Euro, and chaos in global financial system.
Might want to read this:
Deutche Bank failing could well collape the entire world’s banking system1
Getting that cashless society ready. Cash will be abolished and everyone will be forced to get government-approved transaction cards that earn negative interest (which goes back to the globalists).
Thanks for the link.
And governments will have TOTAL control and visibility on our every transaction, from food, to ammo, to anything. If we thought we were debt slaves before, we have not seen anything yet.
It’s where they want it to go. No one buy nothing without their card.
The bigger American banks are deleveraging as fast as they can. They are trying to cut costs by furloughing people and are relying on fee based income for profitability. Going to be lean times in banking for a while.
Yes. DB let go thousands of employees last fall. It should have been a huge wake up call, but the happy talk money gamblers ignored it.
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