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 countrys 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 ...
Ping!
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.
Such behavior would allow a crisis to fester to the level of catastrophe.
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
"You're a BAD bank!"
Feh.
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