On The Verge of Collapse.

[Terpe]

Commerzbank shares fall

Shares in Commerzbank have dropped after a report suggested that Germany is prepared to nationalise the bank if needed.

Der Spiegel, citing government sources, reported on Sunday that Germany could reactivate a rescue fund and buy shares if its second-largest bank cannot raise money by June 2012.

Shares fell 5.3% in early trading. They have dropped 68% so far this year.

The German government already has a 25% stake in the bank.

German banks - heavily exposed to eurozone debt that is the focus of the current financial crisis - have been hit this year and Commerzbank is considered one of the weaker banks.

Its shares fell 22% alone last month.

Source:-
http://www.bbc.co.uk/news/business-16029418

Looks like the German government has already begun preparations for a total bail-out.

I Wonder what will happen when the truth of all of the bank's dirty laundry is finally exposed for all too see.
Any fears around the stability of German banks isn't going to end 'nicely'.

The French banks are even worse. Compared to French GDP of around $2.5 trillion, the top 3 French banks have combined debts over $6 trillion
Sarkozy knows that the French AAA rating will go down sooner than he wants, and he will surely continue on a path of forced nationalisation of the French banks.
I doubt it will save his re-election plan though.

'Chickens coming home to roost' springs to mind.

The ECB may eventually decide to print more money to buy more bonds at unsustainable rates, but I think it will take full-blown default.
So not too long to wait for that one

Is the European banking system is on the verge of collapse?

The facts speak for themselves.

"It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong." - Thomas Sowell

[Bluebirdjones]

Is the European banking system is on the verge of collapse?
.... virtually, and especially in the case of the Southern European banks.

The ECB is the only lender in town, and they're basically lending it against "dodgy" collateral.

From Reuters (22 Nov 2011) ...Bank borrowing at the ECB's weekly offering of unlimited seven-day loans rose by 17 billion euros to 247 billion euros and could rise further

If the bank run in Greece continues, and I see no reason why it shouldn't, and then spills over into Portugal & Spain, then it's game over.

We amended our Euro accounts over 1yr ago, emptied the accounts, and now only accept Euros into our Dutch bank account, and then immediately switch it into sterling and "repatriate" it.

[Dedworth]

Want to check if your savings are covered by the £85k compo guarantee if the bank goes belly up ?

Have a look here

http://www.fsa.gov.uk/pubs/list_banks/2011/nov11.pdf

All banks in the 'Banks incorporated in the United Kingdom' category are fully covered

I just did a double check that my wad in Santander is covered

[Terpe]

Good thinking, and good info Dedworth

[joebloggs]

i cant say much, but i think they must have made alot of people redundant recently.

[grahamw48]

Yet the German economy has the lowest borrowing, debt etc, and they are definitely best placed of all European countries to weather any storm.

That's because since WW2 they have been running their country the way we SHOULD have.

Huge manufacturing sector. Huge exports. Minimal personal and corporate debt.

[Dedworth]

Yet the German economy has the lowest borrowing, debt etc, and they are definitely best placed of all European countries to weather any storm.

That's because since WW2 they have been running their country the way we SHOULD have.

Huge manufacturing sector. Huge exports. Minimal personal and corporate debt.

Would it be worth adding controlled (inc nearby E European) immigration to that Graham ?

[grahamw48]

Yes, AND they buy their own products.