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How the Great Recession Changed Banking

Harvard Business

Just over 10 years ago, French bank BNP Paribas froze U.S. There was a run on British bank Northern Rock. Over the next year, many banks fell. Investment bank Bear Stearns collapsed. We expect investment banks to embark on an even more fundamental makeover during the next decade. The New Face of Investment Banks.

Banking 71
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As European Banks Retreat from the World Stage, China Is Stepping Up

Harvard Business

It has been 10 years since the global financial crisis, and the fall-out continues in the industry that was at its epicenter: banking. There has been a truly dramatic retrenchment from foreign markets, making banking a rare case of an industry becoming less, rather than more, global. For some banks, the answer is simply: Yes.

Banking 71
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Banks – Industry Overview

Tom Spencer

The Business of Banking. Banks are intermediaries for capital and hold the risk when supply and demand is not perfectly balanced. Commercial Banking. A bank, on the other hand, can diversify this credit risk and reduce the average cost of vetting each loan by lending to many borrowers. Investment Banking.

Banking 12
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European Banks Dump Massive Amounts of Subordinated Debt on Investors

MishTalk

The Financial Times notes a Big rise in subordinated debt issuance by EU banks Banks have taken advantage of yield-chasing investors to issue $90.7bn of subordinated debt for the year to date, a 41 per cent increase compared to the same period in 2012. It relates to bail-in procedures in the alleged European "banking union".

Banking 66
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Draghi Pressures ECB to Buy "Junk-Rated" Loan Bundles of Greece and Cyprus

MishTalk

On September 4, ECB President pulled out a financial bazooka including a pledge to build up the ECB''s balance sheet by another €1 trillion. Mario Draghi is to push the European Central Bank to buy bundles of Greek and Cypriot bank loans with “junk” ratings, in a move that is set to exacerbate tensions between Germany and the bank.

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Rising COVID cases, falling economy

Tom Spencer

Since the start of February this year, the Fed has expanded its balance sheet by more than $2.4 To put that in context, the Fed was created in 1913, and its total balance sheet assets only reached $2.4 trillion in assets, but only 2 months to achieve the same amount of balance sheet expansion this year.

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Mish Fined 8,000 Euros for Quoting French Blog

MishTalk

Banks; Global Financial System is Bankrupt. Addendum: Société Générale disputes the numbers and new calculations using the banks'' numbers are 28:1 or perhaps 23:1 not 50:1 as noted on Forex Crunch. Banks do not plunge out of the blue on rumors. French Banking Primer. trillion balance sheet is leveraged nearly 49-to-1.