RUSSIAN TIT for TAT IS COMING ON FRANCE, US, ITALY &
GERMANY
IN MY OPINION this is the story of a naked piracy; the
Russian retaliation stand to reason. Hugo Adan
FRANCE BANKS PLAY RUSSIAN ROULETTE & Why EUROPE is
scared of sanctions against RUSSIA. Submitted by Tyler Durden on
05/01/2014
Author: Benn Steil and Dinah
Walker:
blogs.cfr.org/geographics/ OR:
http://blogs.cfr.org/geographics/2014/04/30/frenchbanks/#more-2248
http://blogs.cfr.org/geographics/2014/04/30/frenchbanks/#more-2248
INTRODUCTION by http://www.zerohedge.com
While everyone is by now fully aware just how dependent Europe
is on Russia's energy supplies 1 (and most are aware of the "nonsense" that the US will
fill any gap if Russia steps up its actions 2 - which Barroso said
wouldn't happen because "Russia has self-interest not to play the energy
card") but few are truly aware of the scale of contagious debt-driven
defaults that could occur if the US (and a reluctant Europe) decide to
undertake more aggressive economic sanctions, which, as Germany's Europe
minister stated today, "are on the table." As the following chart of Europe's
domestic bank exposure to Russia show, Roth's warning that Russia's
retaliation could mean "anything is possible," is a major problem for
the Germans, Italians, and most of all - The French.
NOTES
1- Which European Countries Will Suffer The Most
If Russia Turns Off The Gas: http://www.zerohedge.com/news/2014-03-13/which-european-countries-will-suffer-most-if-russia-turns-gas
2- Liberation Of Europe From Gazprom Due To Nat Gas
Exports Is Nonsense, Cheniere CEO. http://www.zerohedge.com/news/2014-04-11/liberation-europe-gazprom-due-nat-gas-exports-nonsense-cheniere-ceo
--------------
The Graphic: DOMESTIC BANK EXPOSURE TO RUSSIA, You can get in the website above, OR in http://blogs.cfr.org/geographics/2014/04/30/frenchbanks/#more-2248
The Graphic: DOMESTIC BANK EXPOSURE TO RUSSIA, You can get in the website above, OR in http://blogs.cfr.org/geographics/2014/04/30/frenchbanks/#more-2248
ECONOMIC SANCTIONS `ON THE
TABLE'; RUSSIA COULD RETALIATE: ROTH SAYS `ANYTHING IS POSSIBLE' IN UKRAINE
CRISIS
Because they know what happens if this house of cards falls
down...
In the fourth quarter of last year,
with tensions rising between Russia and the West over Ukraine, U.S., German,
UK, and Swedish banks aggressively dialed down their credit exposures in
Russia... but levels remain huge... [see
graphic above]
But as the graphic above shows,
French Banks, which have by far the highest exposures to Russia, barely
touched theirs. At $50 billion, this exposure is not far off the $70
billion exposure they had to Greece in 2010. At that time, they took
advantage of the European Central Bank’s generous Securities Market Programme
(SMP) to fob
off Greek bonds, ,
effectively mutualizing their Greek exposures across the Eurozone. No
such program will be available for Russian debt.
As much of France’s Russia exposure
is illiquid, such as Société Générale’s ownership of Rosbank, Russia’s 9th
largest bank by net-asset value ($22 billion).
With the Obama Administration and
the European Union threatening to dial up sanctions on Russia, is it time for
U.S. money market funds and others to start worrying about their French bank
exposures?
The bottom line - it's all well and good to let the people
starve, freeze, or stagnate amid a lack of energy supplies... but start fucking
our banking exposure … Russian sanctions just got real.. said Tyler Durden in http://www.zerohedge.com/news/2014-05-01/france-plays-russian-roulette-why-europe-scared-sanctions-against-russia
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