GOLD 0.51% $1,391.7 gold futures

Hi Rleonars and all, This business model for the banking...

  1. 3,971 Posts.
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    Hi Rleonars and all,

    This business model for the banking industry is really novel when the banks make good profits they and their shareholders get to keep the money and the employees have their large bonuses and other perks. However, losses more often than not caused by their own poor management are moved onto the shoulders of the tax payer.

    If The Royal Bank of Scotland ever returns to making a profit it will make a refreshing change to see the 72% tax payer shareholders being paid a decent dividend; however, I doubt this will last long as the norm is for profits to be privatised.

    “Royal Bank of Scotland has warned it will have to cut more jobs and branches before it makes its first profit since the financial crisis, after it slumped to a £7bn loss for 2016.”
    “The bank, which is still 72pc owned by the taxpayer, fell to its ninth consecutive annual loss last year, taking its total losses since its £45.5bn rescue in 2008 to about £58bn.”



    copyright link/business/2017/02/24/rbs-reports-7bn-annual-loss-bank-stays-red-ninth-consecutive/


    “Vast liabilities are being switched quietly from private banks and investment funds onto the shoulders of taxpayers across southern Europe. It is a variant of the tragic episode in Greece, but this time on a far larger scale, and with systemic global implications.”

    copyright link/business/2017/02/23/rising-euro-break-up-risk-stokes-new-fears-central-bank-solvency/

    Of course many would have us believe that these banking problems are an exclusive European problem; however, there are plenty of American banks above the 100 ratio mentioned in the list. I don’t play myself but Texas Holdem Poker fans may find this of interest.

    “The Texas ratio is a measure of a bank's credit troubles. Basically, the higher the ratio, the worse the situation is for that particular bank. Banks with a ratio of 100 and higher are in very serious danger of collapse, and banks with a ratio of 50 or higher are vulnerable.”

    http://www.federalobserver.com/troubled_banks.html

    Some are falling for the story that Australia is doing OK and is currently still in the midst of a mining and resource boom, a quick check of our ever increasing debts should go some way to clearing their befuddled brains!

    http://www.australiandebtclock.com.au/

    I hope we soon see the return of one of the major commentators on the Bank Watch thread.

    Cheers and very best regards: Andy
 
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