Lloyd’s of London ABANDONS European banks!

Discussion in 'Media' started by hvactec, Nov 4, 2011.

  1. hvactec
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    hvactec VIP Member

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    November 3, 2011

    “Banks could be taken down,” says Lloyd’s finance director.

    Without warning, Lloyd’s — the world’s oldest insurance market —announced that it has withdrawn its money from European banks.

    The reason? According to Lloyd’s, the banks are in danger of failing as Europe’s debt crisis continues to intensify.

    The company’s Finance Director, Luke Savage, put it simply:

    “If you’re worried the government itself might be at risk, then you’re certainly worried the banks could be taken down with them.”

    Which European governments is Lloyd’s talking about? They’re not saying.

    But it IS interesting to note that Lloyd’s didn’t just withdraw its money from Greek banks; it withdrew its money from banks all over Europe!

    One thing you can be sure of, though:

    When the world’s oldest insurance company …

    A firm that for 323 years has made its living by accurately calculating the odds of future disasters …

    When that company suddenly takes its money and runs, it’s a MASSIVE red flag for investors — a clear sign that the beginning of the end is near!

    Lloyd’s has every reason to worry. In addition to the government debt crisis that’s threatening to destroy European banks, a huge credit crisis is spreading across the Continent as well.

    Spanish and Italian banks are rejecting massive numbers of loans and charging customers more as the sovereign debt crisis continues to drive their own borrowing cost higher.

    Any way you look at it, this shrinking of European credit markets is the worst kind of downward spiral:

    The government debt crisis is making it harder and more expensive for banks to borrow money; the banks are passing those higher costs along to borrowers.

    Read More Lloyd
     
    Last edited: Nov 4, 2011
  2. Baruch Menachem
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    Baruch Menachem '

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    Weird. The source seems to be a blog post. Not that I am casting aspersion just for that. I would be more confident if the source were Dow Jones newswire or the Financial times or something.

    Also, this is something that Lloyds would have a hard time doing. They have so much money floating around europe.

    I would be interested in more news about this, if indeed there is any basis in fact for it.

    Banks and insurance exchanges are far more under the thumb of governments than is the case here. I can't imagine the government allowing them to do this. The last thing the government of the UK wants is to kick the house of cards over or allow any institution to pull out like this.

    Just went on google looking for news. This is not up yet on any newswire.
     
    Last edited: Nov 4, 2011
  3. hvactec
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    hvactec VIP Member

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    Lloyd’s of London Pulls Deposits From Banks on Debt Crisis

    Bloomberg Lloyd
     
  4. editec
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    editec Mr. Forgot-it-All

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    Lloyds is in the business of evaluating and mitigating RISK.

    Clearly they see potential for a black swan event.

    ACtually in this case black swan probably does not describe the potential disaster as the downfall of Greek debt isn't really a statistically unlikely event.



    I don't know what you call this event -- a WHITE SWAN, perhaps? A great big bad assed White Swan?


    I'm actually considering taking the corporate cash out of the bank and putting it into the vaults for a while, just in case.

    The interest we get on those deposits is so small that taking this temporary precaution won't cost us much.
     
    Last edited: Nov 4, 2011

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