Official: EU banks have to raise $140 billion

[Dover]

Source: AP

BRUSSELS (AP) — EU finance ministers neared agreement Saturday on forcing banks to raise just over euro100 billion ($140 billion) to ensure they have enough cushion to weather further losses on their Greek bonds as well as market turmoil, a European official said.

In order to help Athens dig out of its debts — and hopefully keep a cap on the amount of money they have to loan Greece — the 17 countries that use the euro agreed Friday to ask banks to take bigger writedowns on Greek bonds. A new report suggests the value of Greek bonds might need to be slashed as much as 60 percent....cont'd







Read more: http://www.cbs8.com/story/15784118/official-eu-banks-have-to-raise-140-billion

[dkf]

1. Dexia passed the first stress test with flying colors then went kaput.

"The new rules would force systemically important banks to raise their core capital ratios to 9
percent, compared with just 5 percent to 6 percent they needed to pass
EU stress tests this summer. The ratio measures the amount of capital
that banks hold compared to their risky assets."

Are these ratios reflecting the writedowns they are expecting on Greek debt? Is this 9% rate made up of good numbers or is raised because they know the tier 1 assets are crap?

[Owlet]

2. "neared agreement" is not the same as "reached agreement"

This bunch has been near agreement since June with no resolution. No reason to think anything will happen this time around, either, except they all will have had an excellent meal accompanied by an exquisite wine selection.

[femrap]

3. I read that talks will

continue tomorrow....gotta be bad for these Elites to work on Sunday.

I think the Fat Lady is warming up off stage....this crap is going to hit a very big fan. It will be a very interesting last week of October for Wall Street. I'll never forget that sign 'Jump you Fuckers.'

I'm getting some extra cash out of my little local bank....just in case. I don't want to be by all that shit!

[lovuian]

4. 140 billion today and tomorrow 200 billion

it is a bottomless debt pit