Greek Finance Minister Evangelos Venizelos, quoted by ITAR-TASS, confirmed that Greece will receive the 6th tranche of the $ 8 billion from the first rescue package of loans from the EU and International Monetary Fund by mid-November.

For the first time a representative of the Greek government said it wants presence in Athens of the representatives of the country’s international creditors, who have arrived on a mission every three months, “to be permanent, not to create problems in our communication with them, and works to move quickly. ”

According to Venizelos, however, the role of representatives of the “three” (EU, IMF and ECB) will be supportive and advisory. “The decisive role in realizing the program of reforms in Greece,” he added.

Minister of Finance explained that the new package of financial support of Greece agreed on the summit, will amount to 130 billion.

“From the formal sector will receive 100 billion by 2014, and this was added 30 billion to finance the operation of our government debt. Moreover, using the 100 billion loan will satisfy needs of the country and will recapitalize the banks, “he said.

In his words, the program will run until the end of the year and in early 2012 to complete negotiations for the new scheme for private sector involvement in writing off the debt.

Venizelos said that “fully ensure the liquidity of the Greek banking system during the entire period of program implementation is fully secured and recapitalization of Greek banks.”

Moreover, he said “will not impose new austerity measures in the field of pensions and salaries in 2011 and 2012 provided that will be realized all the laws that were adopted by parliament.”

Meanwhile, an economics professor at the University of Athens Varufakis Janis, quoted by RIA Novosti said that the decisions of the Summit of the European Union to overcome the debt crisis are not realistic and can not be realized.

“I think in fact there was no agreement. Just tired of discussions before dawn European leaders decided to give a form of disagreement between them, “said the expert.

In his words, particulars of which are based on estimates of the EU to cut Greek debt are “almost random”. “These data do not support detailed calculations do not correspond to the actual state of affairs in Europe and will soon be convinced. I think “haircut” of Greek debt will not work as they planned it. It would negotiate for 2-3 months, then the discussion will start from scratch, “said the expert.

Varufakis be skeptical and to the statement by Greek Prime Minister George Papandreou, who determine the decisions of the Summit as a “rescue” the country. “This is yet another bailout,” the expert stated that once was the adviser to Papandreou himself.

According to him the right solution to European problems involves homogenization of the banking system, recapitalize its enforcement by the European Financial Stability Fund (EFFS), direct supervision of government debt by the European Central Bank and the formulation of a common anti-crisis policy.

In the early morning hours on Thursday leaders of Member States have announced several initiatives to solve the current problems in the area, including the deletion of 50% of Greek debt by private investors additional financial support for Greece, European banks recapitalize and extending the powers of EFFS.

Euro

The volume of the European Financial Stability Fund will be increased to 1 trillion euros, German media reported, quoted by ITAR-TASS.
According to German media say the figure was set by German Chancellor Angela Merkel at a meeting yesterday with leaders of parliamentary parties and groups that it has notified the details of the changes in the fund.


Moreover, in terms of crisis, European banks will be obliged to provide certain amounts of capital.

Planned capital adequacy to be increased to 9%.

Such recapitalization could cost Europe 100 billion euros and Germany in particular – 5.5 billion.

German publications which refer to the representatives of the Green Party, said they planned to exit the Greek government debt amounted to 50-60%.

The question of extending the powers of the eurozone bailout fund will be submitted again for a vote in parliament on 26 October and will also make a statement to MPs about the problems about the formation of the fund.

Scandinavian banks can offer investors the most secure refuge from the looming wave of recapitalizations, which threatens to lower the price of the shares of European financial institutions, says a study of UBS AG, quoted by Bloomberg.


“This is a very attractive destination for European investors who want to protect themselves from problems in the eurozone,” said Nick Davey, an analyst at UBS.

Nordic banks, including Nordea Bank AB and DnB NOR ASA, have a modest amount of bonds affected by the debt crisis of European countries and at the same time are better capitalized than most financial institutions on the continent.

Nordea CEO Christian Clausen said this week that the bank does not intend to issue shares. At the same time the Nordic governments can boast some of the lowest budget deficits in the world.

Norway actually has the largest surplus of all first-class credit rating – a fact which provides additional protection for investors.

When opening a stock exchange in Oslo this morning, DnB NOR shares rose 3.2 percent, posing as better than the Bloomberg index for European financial institutions, tracking 46 banks, which rose by 1.9%. Nordea starts session with a growth of 1.8% in Stockholm.

In Norway, “the banking sector’s solvency, satisfactory profitability and lower losses from bad loans,” said chief financial regulator Norwegian Morten Baltzersen. “These factors are a good starting point for dealing with potential challenges,” he said.

On October 18, Swedish Finance Minister Anders Borg said he sees no “immediate need” Swedish banks to increase their capital buffers.

The European Union (EU) may ask the banks in the region to raise its capital adequacy ratio to 9%. The deadline for this may be the middle of 2012, said earlier this week, German Finance Minister Wolfgang Schaeuble said on sources of Bloomberg. This is almost 7 years before the deadline for introducing new ridge adequacy of the Basel Committee on Banking Supervision.

In the third quarter, Nordea, the largest Nordic bank had a capital adequacy ratio of 9.2%. At the end of the second quarter, DnB NOR for this indicator was 11.7%.

Scandinavian banks are among the few financial institutions in Europe that still have access to bond markets. Besides these market financing in recent months received only the German Deutsche Bank AG and Commerzbank AG, London-based HSBC Holdings and Dutch Rabobank International.

Nordea has no “direct exposure” to the bonds of Portugal, Italy, Ireland, Greece or Spain, said in a statement the bank on 19 October. Less than 1.3% of the assets of the six largest Norwegian banks are linked to these countries, the Norwegian financial regulator announced in June.

Norway, which transferred most of its revenue from oil to a sovereign wealth fund, amounting to 530 billion dollars, was not affected by European debt crisis. Unemployment rate is the lowest in Europe – only 3%.

Since two years ago, newly elected Greek government announced that a local budget deficit is not just a little more than 3% of gross domestic product, and several times more, ie 14% (later corrected further up), European monetary community can not out of negative headlines, wrote in a comment to Handelsblatt former chief economist of the European Central Bank (ECB) Otmar Issing.


Although the benefits are so far always been only in the form of loans or guarantees, no hopes that “rescue” – any mind will not happen without a national taxpayer burden. Meanwhile, more and more summits are expected not only new aid, but the big rescue shock. In most cases it’s about the principle of national responsibility for obligations to be extended to the whole community, which will inevitably lead to the assumption of impact not only on svrahzadlazhnelite but also by the co-states.

Such a transfer of taxpayers’ money, as in the case eurobonds does not correspond to any democratic legitimacy. This attack on the principle “no taxation without representation” is contrary to fundamental principles of democracy and to create anti-European sentiment in many countries, writes in his commentary Issing.

Only just been decided enlargement of the rescue fund EFSF, the discussion is devoted to the question of how to oversee those 440 billion euros. As alchemists are able to make gold from the mud, so familiar and models can overcome the limitation of funds at no cost.

In principle, all proposals rely on two main points. On the one hand the assumption that 440 billion will be sufficient. Not least politicians would be happy to repeatedly increase the fund which would comprehensiveness frightened all speculators. The danger that a huge availability of funds can be understood as an invitation to be used is not even mentioned.

Obviously, as more become available for stock funds, the more will increase political pressure and money to be used. For example, even a small spread for loans to some countries may be sufficient to require intervention of the Fund. Would not be surprised if we have significantly increased fund rather be regarded as insufficient because of increased use.

On the other hand, politicians dare not, for understandable reasons appear open to the public and parliaments with a proposal for a new increase in the funds.

So it comes to “lift” – a more or less fancy structures than ? 440 billion to create a significantly larger and ready to use a table, says Issing. In this fantasy knows no boundaries. This led to the request of policymakers to increasing private sector involvement in the suppression of sapricheninenata and its crisis. Of all the proposed idea of ??non-AAA rated EFSF emission appears less dangerous.

For all other proposals is a valid argument that increased responsibility, and thus risk the Member States. This is especially true for Germany, as Europe’s largest economy and the country with the best credit rating, will participate most in the pact.

Impulse to increase saving power of EFSF and later the ESM, knows no boundaries. It culminated with the proposal to supply the fund with a bank license. As “Bank” EFSF (or ESM) will be able to buy bonds on the market and then sets them to the ECB.

Before this well-sounding term has a single obstacle. But she does is important. Treaty establishing the euro area clearly prohibits monetary financing of the public sector. Who dared to repeal this ban will give access to the Member, ie politicians, access to printing money. Come to us only a glimpse in monetary history, such as Germany, to see what unforeseen consequences might be what ends his commentary Otmar Issing.

Plans to reduce leverage in the sector, however, may prove to be unrealistic due to lack of interest in the assets of banks.

European banks, assured investors that they can cope with the debt crisis by selling assets and limit their lending, may fail to raise fresh capital quickly enough to avoid a forced recapitalization imposed by governments, writes Bloomberg.

Banks in France, Britain, Ireland, Germany and Spain have announced plans over the next two years to shrink its business by 775 billion euros (1.06 trillion. Dollars) to reduce its dependence on short-term loans and to meet more stringent capital requirements imposed by the European banking regulators disclose data collected by the agency.
Morgan Stanley predicts that by the end of next year, the banking industry in Europe may shrink by 2 trillion. euro by limiting lending and selling assets.

Lack of interest in the assets of banks, as well as potential losses from sales of their loan portfolios, however, make plans to reduce leverage in the sector unrealistic.

“The sale of assets in the current environment is inappropriate,” said Simon Mouhan, sales director of MF Global UK in London. “All banks sell and nobody wants to buy. This scheme simply can not work. Moreover, the contraction is evidenced banks is not sufficient to implement deleverage. They should get rid of assets for hundreds of billions to adapt to the new world order. Must be done recapitalization. ”

To meet the new requirements of European banking regulator to minimum capital adequacy of 9%, banks in Europe may require between 100 billion and 230 billion additional capital, predicts Morgan Stanley and JPMorgan Chase & Co.

These banks can not raise the necessary capital through the sale of assets will have to take money from their governments or the EU, which in turn will impose restrictions on the payment of bonuses and dividends declared on October 12, European Commission President Jose Manuel Barroso .

European leaders will discuss plans for recapitalization of banks at its meeting on 23 October.

Dexia Bank

The Commission must determine whether the transaction may be treated as state aid and if so – Does the EU rules for restructuring banks


The European Commission approved a temporary nationalization of the second largest Belgian bank – Dexia Bank Belgium, which is part of the Franco Belgian group Dexia SA, said in a statement of the executive body of the European Union, quoted by RIA Novosti.

The Commission recognizes that the measure is necessary to preserve financial stability, but at this stage can not decide whether the assumption of assets and liabilities of the Belgian Government replied to the EU rules.

Belgium has six months to announce a restructuring plan for the bank.

Further study of the Commission must determine whether the amount of the transaction may be treated as state aid and if so – Does the EU rules for restructuring the banks, the statement said.

In particular, the EC must assess whether the new restructuring plan will allow the bank to be stabilized in the long run.

The Belgian Government will pay 4 billion, the deal is expected to be formed as soon as possible and to reduce non-strategic assets portfolio of the banking group with 18 billion.

France, Belgium and Luxembourg will provide financial group government guarantees for 90 billion euros, 60.5% of the amount will provide Belgium, 36.5% – 3% and France – Luxembourg.

French authorities expressed their willingness to pay for the French subsidiary of Dexia between 650 and 750 million.

Franco-Belgian group was founded in 1996 following the merger of two major European banking structures – French and Belgian Credit Local Credit Communal.

During the crisis of 2008-2009, Dexia received financial aid of 6.4 billion by the authorities in France, Belgium and Luxembourg.

For the moment, Bulgaria, Austria, Slovakia, Czech Republic, Estonia, Finland and Slovenia do not apply criminal penalties in cases of market manipulation and insider dealing cases of market manipulation and insider dealing .

The European Commission will propose revising the directive on market abuse and provide for criminal penalties for most serious crimes and in particular to market manipulation and use of privileged information in the transacting of stockbrokers, European officials said today, cited by AFP.
In an interview for the “Parisian” yesterday, European Commission President Jose Manuel Barroso said on Thursday it will offer individual criminal responsibility of financial players to finally be recognized in European law.
The Directive will require national legislation to provide penalties for market manipulation and stockbrokers using privileged information on transactions, said the European official. “There is, however, offer a general rule a minimum, this will be left to national legislators.”
Many EU countries already provide criminal penalties in such cases, but the European Commission wants all members to engage said the source.
Currently, Bulgaria, Austria, Slovakia, Czech Republic, Estonia, Finland and Slovenia did not apply criminal sanctions in case of market manipulation or stockbrokers when using privileged information in transactions, according to the Commission.

Between 3000 and 5000 people protested in London against cuts in public spending as part of a global movement and occupations.

“We are 99%”, “We are peaceful and our strength is in our numbers,” “Neoliberalism is disgusting to try something new” were among the messages of protesters who gathered on Saturday in the square before the cathedral “St. Paul “in central London.

Between 3000 and 5000 people came to the square in a major protest, which is intended to occupy the London Stock Exchange within the global movement for genuine democracy, addressing the social and economic injustice in the UK and worldwide.

Who are the organizers?

According to the website of the occupation (http://occupylondon.org.uk/) protest was convened by the UK Uncut – civic organization, which opposes the government measures to cut public spending, Internet activists Anonymous, London wing of the Spanish movement 15m (which started on 15 May and launched a series of occupations of public places in Spain and throughout Europe) and others. These protests, however, characterized in that it does not have a leader or organization, nor clearly defined objectives and methods to achieve them.

Participants are from all walks and beliefs of families with young children to pensioners, but mainly young people.

Protest against what?

$ 1.3 trillion. pound rate of saving banks and to restrictions on public sector spending by 83 billion pounds in practice mean that the incomes of 99% of the British population has decreased, this process is most notable for individuals and families with low incomes . Meanwhile, other 1% and corporations continue to announce record profits and avoid paying taxes (according to UK uncut 95 billion pounds lost per year in unpaid taxes). Taxpayers continue to refuse to pay to prevent the collapse of the banking sector, without introducing restrictions to banks.

Occupation is a continuation of a series of student protests and the protests of workers and trade unions in Britain against public spending cuts from last year and a half. At the same time it is part of a global movement and occupation, on October 15 covered the number of cities around the world from New York and Toronto, in Madrid and Rome, Hong Kong and Cape Town, who are against the current systems which favor an ever smaller part of society of these countries, which puts corporate profits over the individual and leads to environmental and social disaster.
How does it work?

Numerous square to be a general meeting to decide what should happen next. Communication using social networks Twitter and Facebook. The aim is to give the floor to anyone, and any decision to be taken by consensus, as people wave their hands if they agree, and crossed them over their heads if they are not. To overcome the lack of sound system, using “human microphone” – the words of the speakers to repeat the many, to reach everyone. Began a long and slow process, but it is the foundation of this movement and popular democracy.

Decides to establish 12 working groups involving all interested in the topic to come up with proposals to the General Assembly. These groups discuss basically all about: food, shelter, water, toilets, legal issues, medical care, internal and external communications, procedures, how to attract more people, media and location.

Group external communication provides general message of occupiers:

“The existing system is broken, undemocratic and unfair. We need alternatives here and start working on them during the occupation.

We are of all ethnicities, age, gender, class and face with occupations that are happening around the world and refuse to pay for the crisis of the banks.

We support the general strike called on 30 November and student protests on November 9, and all other actions and actions in defense of the health care system, create jobs, anti-war.

We want structural change so that the earth’s resources are used to benefit people and the environment, not the military, corporations and wealthy. ”

All accept it.

In the coming days and weeks occupiers will work together to develop these applications, make them and to articulate specific proposals on how to develop the movement, what targets to set and what alternatives to offer.

Analysts expect new mergers in the Greek banking sector

Some Greek banks may need to temporarily be nationalized in the case that Europe helped restructure the Greek debt as part of a rescue plan for the area, says a senior in US investment firm BlackRock, said on CNBC.

BlackRock Solutions audit the loan portfolios of Greek banks – a process which, according to central bank in Athens will help the sector to restore access to stock markets.

Due to the debt crisis in Greece, Greek banks have been isolated from the stock market and liquidity for operational proved to be entirely dependent on the European Central Bank (ECB).

If the restructuring of the Greek debt and be aggressive if investors continue to sell Greek assets, banks will have to report significant losses and to ensure its capital adequacy to rely on government rescue funds.

Craig Phillips, director of global consulting unit of BlackRock, stated that under government control may be a large part of Greek banks. As Phillips points cause significant depreciation of bank shares and financing problems.

“This is a natural consequence of the need for banks to gain access to state funds and the government to acquire shares in the sector to restore the viability of financial institutions. Subsequently, banks will be privatized again, “he says.

Fund recapitalization of Greek banks amounted to 10 billion euros, but should grow to 30 billion euros after eurozone countries ratify the rescue mechanism for the euro area (EFSF).

Phillips points out that Greek banks are not threatened by irresponsible distribution of loans and the fact that the deepening recession in the country can adversely affect lending.

“The Greek banking system is very conservative background of the economy as a whole,” he says. “The main concern is how deep the recession will be and how it will affect the credit.”

Phillips stated that he expects further mergers in the sector after the second and third largest banks in the country – Eurobank and Alpha Bank – announced in August that will be merged to better cope with the crisis.

“We expect more mergers among banks in order to reduce operational costs and improve competitiveness,” he said.

Bankers and traders on Wall Street, facing demonstrators fourth week already living in tents in the middle of the financial center of New York, say they are angry, but for different reasons, writes Bloomberg.

End of an era of downturns and disappointments for the financial sector may not occur for years. This is the opinion of more than twenty bankers and investors interviewed against the protests on Wall Street. Accusing state’s government interference in the organization of a witch-hunt, they point out the lack of sufficient global stability, leverage and appetite for risky assets as reasons for investment despite the apathy attractive low share prices.

“I do not think the timing is good for making money. Now it’s time for survival, “said Charles Stevenson, president of hedge fund Navigator Group and President of the Board of Directors of 740 Park Ave – the building in which they live Chairman of Blackstone Group LP Stephen Shvartsman and CEO of CIT Group John Thain. The building is one of the targets of protesters.

“The future will be like the past, you know,” said Stevenson. “It will not swamp out.”

Anemic global economy, European debt crisis, state unemployment, frozen just over 9% and stock markets cool fading euphoria gripped Wall Street in 2009 when the industry enjoyed record profits, strongly believes that financial problems have remained in history.

Support the rescue plan for state banks worth 700 billion dollars provided by taxpayers as well as exceptional financing amounting to 1.2 trillion. dollars from the Federal Reserve (Fed) has long been exhausted and the next week, Goldman Sachs will likely reported its second quarterly loss since 1999 when the company went public, predict analysts surveyed by Bloomberg.

“Financial bubble”

“They will not spend money we wanted,” says William Hambrecht, chairman of the San Francisco-based WR Hambrecht & Co. “I’m not sure people really understand that what we experienced was a real burst financial bubble.”

The new rules of the Basel Committee on Banking Supervision (BCBS) foresees a doubling of capital adequacy requirements for banks. Moreover, the fixed income of banks can be reduced by 25%, if adopted version of the Volcker rule prohibiting trade on behalf of clients, said Brad Hints, an analyst at Sanford C. Bernstein & Co.

Leverage of several banks, including Goldman Sachs and UBS, has fallen by half, while according to Morgan Stanley research new regulations may reduce the returns from trading in shares of between 4 and 6 percentage points.

The new rules are the result of the policy of “populist administration in Washington,” says investor Wilbur Ross. John Fellah, co-founder of New York-based MSD Capital LP fund managed assets of billionaire Michael Dell said that “the whole capitalist system is questionable.”