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Global banks join clamour for bailouts(badbank,goodbank,bailout)
Times of London ^ | 01/29/09 | Jenny Booth

Posted on 01/29/2009 7:52:48 PM PST by TigerLikesRooster

January 29, 2009

Global banks join clamour for bailouts

Jenny Booth

The crisis facing banks was sharply underlined today when Russia's second-biggest bank admitted in Davos that it was seeking a bailout and Germany indicated that it was coming round to the idea of "bad banks" to hive off toxic debt.

Russian banks have been badly hit by the global economic crisis, which has hammered the country’s stock, bond and currency markets. A number of its smaller banks have already failed, and some of its biggest lenders may need capital injections.

Speaking at the World Economic Forum in Switzerland, Andrei Kostin, the chief executive of VTB, Russia's second-largest bank, said that the lender may issue preference shares this year as part of a 200 billion rouble (£4 billion, $5.7 billion) state recapitalisation.

“There is no final decision yet on the size of the capitalisation,” Mr Kostin said. “We think that 200 billion roubles would be the right decision.

"The capitalisation is linked to an additional share issue which takes about half a year in Russia, so we think the decision should be taken now. There are different options, including the issue of preference shares.”

Mr Kostin said he hoped VTB could break-even for 2008 under international accounting, but that it was too early to forecast 2009 results. He said non-performing loans totalled about 3.8 per cent but VTB was using forecasts for bad loans for 10 per cent, for planning purposes.

(Excerpt) Read more at business.timesonline.co.uk ...


TOPICS: Business/Economy; Foreign Affairs; News/Current Events
KEYWORDS: badbank; bailout; bank; goodbank; soros

1 posted on 01/29/2009 7:52:48 PM PST by TigerLikesRooster
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To: TigerLikesRooster; PAR35; bamahead; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; ...

Ping!


2 posted on 01/29/2009 7:53:15 PM PST by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
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To: TigerLikesRooster

i don’t understand how people of the suppoed i.q. of the likes of alan greenspan, robert rubin, et al

could create such a mess.

it’s starting to look like a world depression, followed by a world war.


3 posted on 01/29/2009 7:58:58 PM PST by ken21 (the only thing we have to fear is fdr deja vu.)
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To: ken21
Smart people could lose grip of reality easily. (1) They get so enamored in their own vision and ignore the reality or (2) they are good at rationalizing their mistake.

Such behavior would allow a crisis to fester to the level of catastrophe.

4 posted on 01/29/2009 8:04:13 PM PST by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
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To: ken21

The problem is that Greenspan, Rubin, and all the other Free Trader Globalists tried to push a Global economic system that, when simple math and logic are applied, was not going to work.

It was just one big wealth redistribution scheme.

The first nation that gets smart and lets banks die...will be the first nation to recover, and prosper


5 posted on 01/29/2009 8:12:40 PM PST by UCFRoadWarrior (Open Borders should be only for bookstores, not the third world hellhole known as Mexico)
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To: TigerLikesRooster

"You're a BAD bank!"

6 posted on 01/29/2009 8:12:53 PM PST by Ken H
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To: TigerLikesRooster

Feh.


7 posted on 01/29/2009 9:14:15 PM PST by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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To: UCFRoadWarrior
You might enjoy this vanity (and this one).

Cheers!

8 posted on 01/29/2009 9:15:59 PM PST by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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