German authorities with unprecedented activity of buying shares in the brook record losses of private banks …
German authorities with unprecedented activity of buying shares in the brook record losses of private banks. This is the first large-scale nationalization of the German banking sector since 1931
Flasher ambulance, hospital ward, an emergency survey - for the head of the largest private bank in Germany Deutsche Bank Josef Ackermann mid-January produced too heavy. The most highly paid manager of Germany (Ackermann annual revenue exceeded 14 billion euros), retired colonel of the Swiss Army (Ackermann remains a citizen of Switzerland), an iron manager of the German economy was taken to a Berlin hospital with the “attack of weakness.” “The reason for the problems of food became lodged at the reception,” - said the press office of Deutsche Bank.
In the corridors of the financial world, this version is not found convincing: the day before the “bad food”, filed at a reception with the participation of Ackermann, he headed the bank was forced to admit that last year had been for the Deutsche Bank a record loss. The volume of losses for the IV quarter of 2008 totaled 4.8 billion euros, the total losses for the whole year - 3.9 billion euros.
the first time in postwar history of Deutsche Bank - the country”s largest bank, whose assets are matched to two trillion euros - finishing the year with losses. Just a couple of months ago the leadership of Deutsche Bank recall with pride the record a profitable 2006 and (if profit reached 6.5 billion euros) and stated that, unlike other credit institutions, Deutsche Bank remains the most healthy and profitable bank in Germany and never not take advantage of the state program of support crisis banks.
“Well then, that the important German financial institution has set an example and did not attempt to conceal the truth. This makes Deutsche Bank honor,” - said the head of the German Financial Supervisory Service BaFin Jochen Zano. According to the chief of the Comptroller of Germany on the beneficial example set by Deutsche Bank, may be more than prophetic: at present, the main subject of dispute among German analysts question is, how many more banks in the country are going to soon discover information about the record losses and ask for an umbrella state guarantees in exchange for the transferred authorities to share their shares.
total disaster
Support State special fund stabilize financial markets, SoFFin, - this is the last straw, for which lacks today top managers, even the biggest German private lending institutions. The second-largest private bank in the country - Commerzbank, with assets of 600 billion euros, and capitalization of about four billion euros - have turned last week to federal authorities in Germany to provide him with immediate assistance. Bank experiences a shortage of liquidity and can not finance its current operations, the statement said bankers.
After an emergency meeting of members of the Government it was decided to Commerzbank more than a massive aid: the Government will provide the bank a total of 18 billion euros. O1000f this amount, 16.4 billion euros, in fact, constitute a preferential loan, the servicing of which Commerzbank will spend 700 million euros a year (for us this amount is not a problem, “- said CEO Commerzbank Martin Blessing), and 1, 6 billion euros, for which the German government will acquire 25% stake plus one share of Commerzbank.
Thus, in the hands of the federal government would be a blocking stake in the second-largest bank in the country, who also is currently in the process of completing the absorption of the third-largest private bank in Germany - Dresdner Bank.
The speed of acquiring FRG authorities blocking stake Commerzbank has already sparked strong criticism from the supporters of free market economy. “Voluntary into slavery by” the trial was a partial nationalization of Commerzbank chief editor of Germany”s leading economic weekly WirtschaftsWoche Roland Tichy. Particularly disturbing looks the fact that the acquired shares were issued during the special additional issue not passed the approval of shareholders Commerzbank.
Such a procedure is made possible by the adoption in late October 2008 the law “On speeding up and facilitating the acquisition of shares of companies of the financial sector. According to this law, if the management of a financial institution finds it necessary to conduct additional issue of shares to transfer them to the state, then this issue is possible if approved by the supervisory board and does not require the approval of shareholders required for any additional issue. The shareholders, therefore, can not help with the erosion of their shares - the company may be transferred to state control after the corridor talks top managers and the Ministry of Finance. “The new law represents a massive weakening of the rights of shareholders”, - said Professor Frankfurt School of Finance and Management Christoph Shalast. Anxiety experts can understand: it seems that the German state is increasingly beginning to acquire a taste of full or partial nationalization of banks. The objectives of acquisitions are as large banks such as Commerzbank, and the second-tier banks. Thus, already decided to purchase a 50% stake in the bank crisis Hypo Real Estate (HRE). Recall that last fall, the HRE was one of the most affected banks: in October it became known that speculation with a mortgage, conducted by the Irish daughter HRE, by Depfa, HRE yielded losses of more than 50 billion euros. In October, authorities in Germany have decided to become a guarantor of debt HRE and became surety for the debts of HRE in the amount of 35 billion euros. Meanwhile, the term state guarantees ends April 15, 2009 and is currently the Government of Germany is ready to become the owner of 50% stake in HRE plus one share.
not stop
fears fueled by the growth of state influence is the fact that seems to be unwinding flywheel nationalization of banks is almost impossible to stop. The federal government acquire stakes in the largest private banks, even when, like, not going to do. The best example of such an expansion of state influence was imminent entry of the federal government a shareholder of Deutsche Bank.
This entry has been made possible thanks to a complex deal struck late last year between Deutsche Bank and the German postal service Deutsche Post. Largest private bank in Germany has made shopping a little less than 30% of shares owned by Deutsche Post bank Postbank - the bank that is included in the five largest banks by total assets of the country. Under the deal, Deutsche Bank at the request could pay part of the purchase of their shares by exchanging them for shares of Postbank at the rate of one to one. Last week it became known that the leadership of Deutsche Bank will do s1000o. Against the backdrop of falling stocks Deutsche Bank is the solution looks very reasonable, but for the fact of Deutsche Post shares valued at 1.1 billion euro means that 30% of them fall into the hands of the state-controlled bank KfW - namely that the State Bank owns a third of Deutsche Post. As a result, the federal government of Germany will have in their hands through the scheme about three per cent of the shares of Deutsche Bank. Once the transaction is completed, the German banking landscape has changed dramatically. If even a week ago, federal and Land authorities had controlled only 37% of banks in the country (in terms of assets) - mainly the social and legal savings banks, land banks, as well as special investment banks - after the active intervention in the banking sector, state influence in the varying degrees, from full control to the minority interest ownership, to expand it to 38% of banks in Germany. Thus, in one degree or another state will be in the presence of 75% of German credit institutions.
Meanwhile, the massive government intervention in the banking sector in Germany has not yet yielded the desired market stability. On the contrary: the shares of major banks last week continued its decline. Skepticism market players warmed up the news coming from overseas. In the U.S., all new banks declare the record loss of IV quarter. The largest private financial group, Citigroup announced a loss in the last quarter of 2008 of $ 8.3 billion dollars - so the overall losses for the 2008-th to get close to 18.7 billion dollars.
Another large U.S. bank - Bank of America - announced the IV quarter loss of $ 2.4 billion dollars. Not surprisingly, the nervousness in the banking sector is growing, and with it grow, and the shortage of liquidity. The state in this case automatically acts as a guarantor of stability of banks - and the next its interference in the financial sector contributes even more uncertainty. The last time such a massive intervention of the German state in the banking sector was observed in 1931 - then, after the collapse of the Bank of Darmstadt Danatbank, the banking sector rocked by a wave of bankruptcies, resulting in Dresdner Bank and Commerzbank have been nationalized. Their re-privatization took place only in 1937, and it seems that today, the era of major private banks in Germany, if not coming to an end, it is a stage of serious revision of the rules of the game.
Frankfurt
Sergei Conscience
Net profit of the Bank “Saint Petersburg” on results in 2009 under RAS decreased in 2,2 times to 1,4 billion rubles
In the currency market the dollar strengthened somewhat on most currencies
Look at today”s market
Alexander Lebedev took off from Aeroflot for $ 400 million
Bernanke has the support of more than half the senators before the vote
The head of the ECB Obama supported the proposed restrictions for banks
Recommendations for market shares: LUKoil, Norilsk Nickel, Rostelecom, Gazprom, Mosenergo, Surgutneftegaz, Sberbank “
The reluctance of oil platforms to make another attempt to increase as a deterrent to domestic market
Recommendations on the shares of Gazprom, Lukoil, Rosneft, Sberbank and VTB
Banks in plainclothes
German authorities with unprecedented activity of buying shares in the brook record losses of private banks …
German authorities with unprecedented activity of buying shares in the brook record losses of private banks. This is the first large-scale nationalization of the German banking sector since 1931
Flasher ambulance, hospital ward, an emergency survey - for the head of the largest private bank in Germany Deutsche Bank Josef Ackermann mid-January produced too heavy. The most highly paid manager of Germany (Ackermann annual revenue exceeded 14 billion euros), retired colonel of the Swiss Army (Ackermann remains a citizen of Switzerland), an iron manager of the German economy was taken to a Berlin hospital with the “attack of weakness.” “The reason for the problems of food became lodged at the reception,” - said the press office of Deutsche Bank.
In the corridors of the financial world, this version is not found convincing: the day before the “bad food”, filed at a reception with the participation of Ackermann, he headed the bank was forced to admit that last year had been for the Deutsche Bank a record loss. The volume of losses for the IV quarter of 2008 totaled 4.8 billion euros, the total losses for the whole year - 3.9 billion euros.
the first time in postwar history of Deutsche Bank - the country”s largest bank, whose assets are matched to two trillion euros - finishing the year with losses. Just a couple of months ago the leadership of Deutsche Bank recall with pride the record a profitable 2006 and (if profit reached 6.5 billion euros) and stated that, unlike other credit institutions, Deutsche Bank remains the most healthy and profitable bank in Germany and never not take advantage of the state program of support crisis banks.
“Well then, that the important German financial institution has set an example and did not attempt to conceal the truth. This makes Deutsche Bank honor,” - said the head of the German Financial Supervisory Service BaFin Jochen Zano. According to the chief of the Comptroller of Germany on the beneficial example set by Deutsche Bank, may be more than prophetic: at present, the main subject of dispute among German analysts question is, how many more banks in the country are going to soon discover information about the record losses and ask for an umbrella state guarantees in exchange for the transferred authorities to share their shares.
total disaster
Support State special fund stabilize financial markets, SoFFin, - this is the last straw, for which lacks today top managers, even the biggest German private lending institutions. The second-largest private bank in the country - Commerzbank, with assets of 600 billion euros, and capitalization of about four billion euros - have turned last week to federal authorities in Germany to provide him with immediate assistance. Bank experiences a shortage of liquidity and can not finance its current operations, the statement said bankers.
After an emergency meeting of members of the Government it was decided to Commerzbank more than a massive aid: the Government will provide the bank a total of 18 billion euros. O1000f this amount, 16.4 billion euros, in fact, constitute a preferential loan, the servicing of which Commerzbank will spend 700 million euros a year (for us this amount is not a problem, “- said CEO Commerzbank Martin Blessing), and 1, 6 billion euros, for which the German government will acquire 25% stake plus one share of Commerzbank.
Thus, in the hands of the federal government would be a blocking stake in the second-largest bank in the country, who also is currently in the process of completing the absorption of the third-largest private bank in Germany - Dresdner Bank.
The speed of acquiring FRG authorities blocking stake Commerzbank has already sparked strong criticism from the supporters of free market economy. “Voluntary into slavery by” the trial was a partial nationalization of Commerzbank chief editor of Germany”s leading economic weekly WirtschaftsWoche Roland Tichy. Particularly disturbing looks the fact that the acquired shares were issued during the special additional issue not passed the approval of shareholders Commerzbank.
Such a procedure is made possible by the adoption in late October 2008 the law “On speeding up and facilitating the acquisition of shares of companies of the financial sector. According to this law, if the management of a financial institution finds it necessary to conduct additional issue of shares to transfer them to the state, then this issue is possible if approved by the supervisory board and does not require the approval of shareholders required for any additional issue. The shareholders, therefore, can not help with the erosion of their shares - the company may be transferred to state control after the corridor talks top managers and the Ministry of Finance. “The new law represents a massive weakening of the rights of shareholders”, - said Professor Frankfurt School of Finance and Management Christoph Shalast. Anxiety experts can understand: it seems that the German state is increasingly beginning to acquire a taste of full or partial nationalization of banks. The objectives of acquisitions are as large banks such as Commerzbank, and the second-tier banks. Thus, already decided to purchase a 50% stake in the bank crisis Hypo Real Estate (HRE). Recall that last fall, the HRE was one of the most affected banks: in October it became known that speculation with a mortgage, conducted by the Irish daughter HRE, by Depfa, HRE yielded losses of more than 50 billion euros. In October, authorities in Germany have decided to become a guarantor of debt HRE and became surety for the debts of HRE in the amount of 35 billion euros. Meanwhile, the term state guarantees ends April 15, 2009 and is currently the Government of Germany is ready to become the owner of 50% stake in HRE plus one share.
not stop
fears fueled by the growth of state influence is the fact that seems to be unwinding flywheel nationalization of banks is almost impossible to stop. The federal government acquire stakes in the largest private banks, even when, like, not going to do. The best example of such an expansion of state influence was imminent entry of the federal government a shareholder of Deutsche Bank.
This entry has been made possible thanks to a complex deal struck late last year between Deutsche Bank and the German postal service Deutsche Post. Largest private bank in Germany has made shopping a little less than 30% of shares owned by Deutsche Post bank Postbank - the bank that is included in the five largest banks by total assets of the country. Under the deal, Deutsche Bank at the request could pay part of the purchase of their shares by exchanging them for shares of Postbank at the rate of one to one. Last week it became known that the leadership of Deutsche Bank will do s1000o. Against the backdrop of falling stocks Deutsche Bank is the solution looks very reasonable, but for the fact of Deutsche Post shares valued at 1.1 billion euro means that 30% of them fall into the hands of the state-controlled bank KfW - namely that the State Bank owns a third of Deutsche Post. As a result, the federal government of Germany will have in their hands through the scheme about three per cent of the shares of Deutsche Bank. Once the transaction is completed, the German banking landscape has changed dramatically. If even a week ago, federal and Land authorities had controlled only 37% of banks in the country (in terms of assets) - mainly the social and legal savings banks, land banks, as well as special investment banks - after the active intervention in the banking sector, state influence in the varying degrees, from full control to the minority interest ownership, to expand it to 38% of banks in Germany. Thus, in one degree or another state will be in the presence of 75% of German credit institutions.
Meanwhile, the massive government intervention in the banking sector in Germany has not yet yielded the desired market stability. On the contrary: the shares of major banks last week continued its decline. Skepticism market players warmed up the news coming from overseas. In the U.S., all new banks declare the record loss of IV quarter. The largest private financial group, Citigroup announced a loss in the last quarter of 2008 of $ 8.3 billion dollars - so the overall losses for the 2008-th to get close to 18.7 billion dollars.
Another large U.S. bank - Bank of America - announced the IV quarter loss of $ 2.4 billion dollars. Not surprisingly, the nervousness in the banking sector is growing, and with it grow, and the shortage of liquidity. The state in this case automatically acts as a guarantor of stability of banks - and the next its interference in the financial sector contributes even more uncertainty. The last time such a massive intervention of the German state in the banking sector was observed in 1931 - then, after the collapse of the Bank of Darmstadt Danatbank, the banking sector rocked by a wave of bankruptcies, resulting in Dresdner Bank and Commerzbank have been nationalized. Their re-privatization took place only in 1937, and it seems that today, the era of major private banks in Germany, if not coming to an end, it is a stage of serious revision of the rules of the game.
Frankfurt
Sergei Conscience
Net profit of the Bank “Saint Petersburg” on results in 2009 under RAS decreased in 2,2 times to 1,4 billion rubles
In the currency market the dollar strengthened somewhat on most currencies
Look at today”s market
Alexander Lebedev took off from Aeroflot for $ 400 million
Bernanke has the support of more than half the senators before the vote
The head of the ECB Obama supported the proposed restrictions for banks
Recommendations for market shares: LUKoil, Norilsk Nickel, Rostelecom, Gazprom, Mosenergo, Surgutneftegaz, Sberbank “
The reluctance of oil platforms to make another attempt to increase as a deterrent to domestic market
Recommendations on the shares of Gazprom, Lukoil, Rosneft, Sberbank and VTB