World banks have lost 666 billion dollars

Total income of participants of a rating «Top-1000 of world banks», constituted by journal The Banker for 2008-2009, has fallen to 85 % — with 780,8 млрд dollars to 115 млрд dollars. The Russian banks have fallen in the general list because of the rouble drop in the rate, however largest of them have managed to save domination in the country.

In particular, the Savings Bank, which profit has increased to 4,4 млрд dollars. From the first three of the Russian banks only the Gazprombank has weakened items: because of losses in 2,6 млрд dollars for 2008 its capital of the first level has decreased on 52 %. The greatest lifting this year has endured Petrokommerts, whose shareholders have approved допэмиссию on 20 % of shares in September, 2008. The bank has jumped on 172 places and was lifted on 570 line.

World central banks disperse in reaction to a credit crisis

On Wednesday distinctions between leading world central banks in approaches were accurately showed how to react to a credit crisis and abnormally high rates on interbank crediting, writes Financial Times. The European central bank has made injection of 75 billion euro in a financial system for three months to reduce a difference between rates «овернайт» and cost of three-month's credits.

Despite it the rate under these credits in euro continues to fluctuate near 4,75 % — the highest mark since May, 2001 — and it is essential above the target rate «овернайт» ЕЦБ in 4 %, marks The Wall Street Journal. Usually the difference is much less.

Intensity speaks a money-market of Europe two reasons. The European banks are afraid that other banks still hide that have suffered from crisis on a mortgage market of the USA. Besides, the European banks aspire to accumulate money resources for various reasons.

The traders trading in commercial papers, believe that investors completely will return on this market in 4—6 weeks. However already there are signs of improvement of a situation. On Wednesday commercial papers for the sum of 24,85 billion dollars that has exceeded the sum of 21 billion dollars on which the date of disbursement has approached have been manufactured. There is also data that some investors have preferred month and three-month papers to deposits «овернайт».

At the same time central banks of Great Britain and Canada have expressed doubt that the actions similar undertaken ЕЦБ, will bring positive result, underlines Financial Times. The head of Bank of England Mervin King has noticed in a written statement directed committee under the finance of the British parliament that this approach «encourages acceptance of overwork risks and sows seeds of the future financial crisises».

M.King has warned about danger of granting some kind of central bank warranties to those establishments which precipitately distributed credits.

«Liquidity granting in great volumes puts in position those banks which behaved cautiously is more unprofitable, encourages gregarious behaviour and increases scales of the future crises», — M.King considers.

Cost of credits for three months on the London inter-bank market has slightly decreased.

M.King and the head of Bank of Canada David Dodge have declared that banks of commerce possess sufficient liquidity to cope with problems of the investment foundations which are incurring losses.

Acting in London, D.Dodge has told that expects from investors in the future большей care concerning complex financial products. «On the investor responsibility lies, it should make sure that understands degree of riskiness of a product which purchases», — he has underlined.

The Federal Reserve System of the USA takes an intermediate position. It did not begin to increase crediting periods, but has made accessible credits for 30 days through a discount window.

Predictably, politicians will call to большей a transparency in the structured financing at a meeting of Ministers of Finance of EU on Friday. Discussion of possible measures on this problem, including, revision of standards of the capital of banks and association in general fund of problem assets also proceeds.

World banks while are rescued

The largest hypothecary agency Hypo Real Estate (HRE) was necessary to nationalise Germany. Only this step has allowed to avoid "death of a world financial system". Such application was made by the president of Federal agency of Germany under the control over financing activities (BaFin).

Thus he has noticed that at BaFin was not the slightest chance to prevent bankruptcy HRE. But despite lacking chances, since autumn of 2008 the government has allocated to agency more than hundred billions euro as credits and state warranties.

Agency Hypo Real Estate has seriously suffered from a global financial crisis as has enclosed significant means in the American hypothecary papers. Following the results of 2008 agency losses have constituted about 5,5 billion euro.

The current situation shows, the world financial system when bankruptcy only one, let even the large, German company, could lead to full breakdown of all system is how much astable and fragile. On the other hand, it is one more vivid example of that all elements of this system are dependent among themselves.

The governments of all countries as if captains of the huge ship which has faced an iceberg, try to stop up holes huge money supplies. Seeing the feebleness, they do not know how to prevent new collisions with an iceberg.

The world crisis cannot be stopped transfusion of money "from empty in empty". Our ship-planet has a chance to remain afloat, only if we realise that financial communications, and human are infringed not.

Boundless egoism of each destroys all "body" of mankind, like a cancer cage which destroys all fabrics round itself and as a result perishes.

In the world: Nationalization of hypothecary agency of Germany has rescued all world banks

Nationalisation of the largest hypothecary agency of Germany Hypo Real Estate (HRE) has allowed to avoid "death of a world financial system". Such application as informs AFP, the president of Federal agency of Germany under the control over financing activities (BaFin) has made Johen Sanio (Jochen Sanio). Thus he has noticed that at BaFin was not the slightest chance to prevent bankruptcy HRE.

Besides, Sanio has noticed that Germany the special agency similar to the American Federal agency on a deposit insurance (FDIC) should be created.

The government of Germany has begun nationalisation HRE in April, 2009 when it was offered to shareholders of hypothecary agency to sell the state of their share. Before HRE has received a government aid at a rate of 102 billion euro. This money has been transferred agency by several tranches. Nevertheless, state financial support has not helped HRE to cope with a worsening financial position.

To have an opportunity to nationalise HRE the government of Germany in the middle of February of a current year has approved the law, allowing to conduct time nationalisation of the financial organisations to which bankruptcy threatens. Agency HRE has had significant financial losses as has enclosed the big means in the American hypothecary papers which have actually depreciated with the beginning of a financial crisis. Following the results of 2008 agency losses have constituted 5,46 billion euro.

The Russian banks storm world ratings

35 Russian banks have got to a new rating of journal The Banker is on third more than year before. Because of a financial crisis there were changes in a three of leaders of the list, however representatives of Russia have only hardened the items and are capable to increase weight and next year.
The largest banks of the world continue to be in the red and write off assets. On this background the Russian banks which less have suffered from a financial crisis, have expanded representation in the world rating Top-1000 annually published by journal The Banker. For hit in it it is necessary to have the capital at a rate of 250 million dollars - this year under this criterion 35 domestic banks whereas in the past рэнкинге them was 27 have got.
For the first time, write "Sheets", to the list of the largest banks under the capital are introduced "the WHALE финанс" (505 million dollars, 692 place), "Renaissance" (489 million dollars, 699 place), "Union" (364 million dollars, 817), "Tsentrokredit" (306 million dollars, 896), the Moscow industrial bank (288 million dollars, 925 place), Hunts-Mansijsky bank (277 million, 941), investment bank "Trust" (253 million, 987), Masterbank (250 million, 993) and "Avant-guard" (250 million dollars, 994 place). The Vneshekonombank which has received the status of state corporation could not participate in rating The Banker.
From the Russian old residents рэнкинга practically all have improved the items. The Savings Bank has more than doubled the capital (to 25,3 млрд dollars) and was lifted from 66 places on 33. ВТБ (15,6 млрд the dollars), have grown from 116 places on 60, Gazprombank (7,6 млрд dollars) were justified on 112th line, and together they have constituted a three of the largest banks of the Eastern Europe. In one hundred the banks which have made the greatest jerk upward, nine representatives of Russia, five of them - in the first twenty.

During a financial crisis for the Russian banks of complexity with crediting abroad were partly compensated by resources in the country which arrive from export of energy carriers, and investments abroad, ensured losses, at the Russian banks practically was not, - the director of department of operations on financial markets of Nomos-bank has commented to the edition on Vasily Fedorov. Resources in the country remain, therefore even at complexities on foreign markets the Russian banks will continue to grow fast and will increase the representation in the following list The Banker and weight in the world community, he considers. To expand presence at a rating to the Russian banks growth rates of business - 35-40 percents a year have helped, with such speed they do not grow in the Eastern Europe, especially in Western, Arcady Kolodkin has added preboards NRB. However, in its opinion, next years to increase presence a rating hardly it will be possible, because almost all big banks in The Banker have already got.
Meanwhile, to make the way in leaders Top-1000, it is necessary to have the capital from above 100 млрд dollars that to the Russian banks yet on a teeth. However, the financial crisis has introduced the corrective amendments and in an alignment of forces in the top part of the list. Last year's leader Bank of America has lost 8,4 percents of internal funds and with an indicator 83,4 млрд the dollars have fallen at once on the fifth line. At the head of a rating instead of it has risen British HSBC which has increased the capital by 19,5 percents - to 105 млрд dollars American Citigroup, the most suffer from crisis and written off more than 40 млрд dollars, despite capital decrease on 1,8 percents to 89,2 млрд dollars, has saved the second item. On 3 place kept HSBC, with a gain in one and a half time to 88,9 млрд the dollars were pulled out Royal Bank of Scotland (RBS). It became the largest bank of the world on assets (3,8 млрд dollars) . Last year on the first place on this indicator was UBS, but it became the second after Citigroup the most suffered from crisis. Decrease in assets more than on 5 percents has rejected it on 8 place, under the capital it has fallen on 31 place, having practically made even to the Savings Bank. To the second on assets became Deutsche Bank, the third place was saved by the French group BNP Paribas.

Global world banks put on rouble

Global world banks Merrill Lynch, Goldman Sachs and Deutsche Bank consider the Russian currency of one of the most underestimated in the world and suggest the clients to put means in a russian ruble.

Inflow of the foreign speculative capital can complicate considerably a problem of the Russian Central Bank on cracking down on inflation. Moreover, the Russian analysts have regarded recommendations of the foreign colleagues as speculative attack to rouble. However interlocutors of "Time of news» in Merrill Lynch and Deutsche Bank confute similar charges, declaring that they did the conclusions, being based exclusively on macroeconomic indicators.

Yesterday agency Bloomberg has published the article «Rouble cubed? Putin keeps to Medvedev to solve a problem 13 percent inflation» (Ruble Cubed? Putin puts Medvedev in dilemma with 13 % inflation) where results of interrogation of analysts of three largest international banks are resulted, according to which Russian authorities it is necessary to harden a nominal rate of rouble for fight against inflation. As marks agency, analysts expect that the national currency of Russia will rise in price at least for 4 % to бивалютной to a basket during half a year. Only thus financial powers will manage to lower rates of inflation though interests of exporters can suffer from such actions. To expect rouble strengthening it will be possible right after for inauguration of new president Dmitry Medvedev. For this reason of analytics suggest investors to pay attention to the Russian currency market and to place money in purchase of roubles.

Let's notice that earlier the first vice-president of the Central Bank Alexey Uljukaev declared time and again that before a regulator it is not necessary to struggle an accurate problem with inflation by rouble exchange rate strengthening. For decrease in rates of price increases the Bank of Russia already twice from a turn of the year increased money-market rates.

As Julia Tsepljaeva has declared to "Time of news» group economist Merrill Lynch in Russia, there are fundamental reasons for rouble strengthening. «The Russian Central Bank can limit growth of a rate of national currency for any term, however in intermediate term and long-term prospect the rouble will rise in price. In our opinion, the rouble is the most underestimated in comparison with other currencies of emerging market economies. According to strategic currency department Merrill Lynch, the fair rate is 17,92 roubles for dollar», - she speaks.

According to group economist Deutsche Bank in Russia Yaroslav Lisovolika, «heavy prices for petroleum - one of principal causes of strengthening of rouble. By our estimation, the rouble is underestimated approximately on 10 %, that is should cost now about 21,5 roubles for dollar. Furthermore in the conditions of a development of inflation strengthening of a nominal rate of rouble is while the most effective instrument for rise in prices restraint». By existing estimations, the increase in exchange-value of rouble on 1 % promotes inflation decrease on 0,3 %.

Proceeding from a current situation financial powers should choose: or to struggle with inflation, using for this purpose all possible instruments, including and the exchange rate, or, on the contrary, to constrain rouble strengthening, but in this case rates of price increases remain high, Mr. Lisovolik underlines.

Problem in that if foreign investors will follow to recommendations of global banks thereby will increase inflow of the speculative capital to the country. So, pressure upon rouble will increase, and the Central Bank not to admit its sharp strengthening, it is necessary to buy up dollars, in exchange increasing the national currency offer in the market. As consequence - increase in a money supply and a development of inflation. «Now many speculatively adjusted investors search where to enclose means, and the Russian market seems to them quite perspective. However their desire to play on rouble strengthening considerably will complicate a problem of Bank of Russia on inflation decrease», - the chief of an analytical department of exchequer VTB Nikolay Kascheyev spoke recently to "Time of news».

Experts "Interfax-TSEA", making comments yesterday on forecasts of world investment houses, have expressed opinion that authors of the review wish to take advantage of such feature of a financial market at which event expectations amplify that the increasing quantity of market participants starts to trust them. As interlocutors "Interfax-TSEA" mark, as a matter of fact, it is the present speculative attack to the rouble, carried out on the global markets and comparable that took place in 1998. Only then this attack was led with an opposite sign. Analysts notice that the world investment banks predicting revaluation of rouble, most likely, directly are interested in this process as, most likely, have taken concerning rouble "long" items.

Interlocutors of "Time of news» reject vigorously similar suspicions, reminding of existence so-called «the Chinese wall» between divisions in global investment banks which does not allow analysts to accompany the bankers selling services to clients.

«The speculative capital is very mobile, and really uneasy to operate a rate of exchange with allowance for inflow and outflow of these means, - Mrs. Tsepljaeva speaks. - However the Central Bank in the middle of 2006 has removed restrictions on realisation of capital operations. If the regulator would not be ready to free movement of foreign means in the Russian market such decision would not be then it is accepted. We should to be able live in conditions of mobility of the capital as it is done by all large economy of the world».

According to Mrs. Tsepljaevoj, inflow of capital this year can constitute 50-55 bln. dollars And, in its opinion, it will make smaller impact on a development of inflation, than increase of social costs. Under forecasts Deutsche Bank, inflow of capital will constitute 40 bln. dollars

In the first quarter the pure capital outflow has constituted 22 млрд dollars, however in April foreign investors began to put again the means to Russia and according to Minister of Finance Alexey Kudrin, inflow of capital last month has constituted 10 bln. dollars

«It is obvious that at rouble strengthening some branches of real sector suffer that negatively affects rates of economic growth. Besides, if rouble strengthening is predicted for the market such consistent policy of the Central Bank can lead to essential inflow of the foreign speculative capital», - Mr. Lisovolik marks.

It perfectly understand and in the Central Bank: earlier the regulator conducted time and again "dot" strengthening of a nominal rate - in one day the Bank of Russia unexpectedly for the market sharply lifted rouble quotations, and, accordingly, cost бивалютной baskets increased. «Single injections» were done that speculative investors could not have time to take advantage of a situation and to play on rate growth. Therefore it is obvious that even if the Central Bank now and is ready to go on rouble strengthening, hardly a regulator in it publicly admits.

According to strategic currency department Merrill Lynch if the regulator begins to increase a rouble exchange rate in relation to бивалютной to a basket on 8 % following the results of a year inflation can constitute 10-11 % annual, otherwise - 14,5 % annual. Yaroslav Lisovolik predicts 11,9 % annual provided that the Central Bank will allow to become stronger бивалютной to a basket on 1,7 %. Acting in April in the State Duma, Alexey Uljukaev has declared that inflation, probably, will be following the results of a year below 10 % annual.

Unemployment has overflowed banks

Bank america Lehman Brothers declared dismissal of every tenth employee in the investment division and about preparation for new writing off of bad debts.

So, according to television channel CNBC, bank Lehman Brothers declared dismissal of 200 persons from 2000 working in investment division in expectation of new writing off of the overdued indebtedness.

Lehman Brothers has rather easily transferred hypothecary crisis, having written off all 1,5 billion dollars while losses of other banks reached 10 billion dollars.

The American financial institutions which have lost because of crisis more of 150 billion of dollars, in every way try to minimise the further losses, in particular at the expense of expenditure cut on the wage. So, for example, in banks, costs for workers constitute 50-60 percent of expenses of the company, and in investment companies this indicator still above.

Financial analysts and necessity of reduction by banks of cost of advances portfolioes in sectors of the commercial real estate and private investments mark. By some estimations, writing off in Goldman Sachs will constitute 2,7 billion dollars, and in Lehman Brothers - 500 million.

Are prepared to conduct lay-offs Citigroup, Merrill Lynch, Societe Generale and other banks which have suffered from a conjuncture and own errors. Has not carried to employees Citigroup most. Last year the group has left from 17 000 persons, and in the first months of a current year a door will indicate to 4200 more workers.

In Russia the situation as a whole is easier, though examples of scale reductions are and in our banks.

So, in one of the largest banks in the field of buyer's credits dismiss almost on one thousand workers a month. Off-schedule certification for this purpose appears. There are divisions where for the last three months has taken place already four certifications.

The bank has been forced to change credit conditions and closely to attend to optimisation of costs. There are no issued credits for a point - there are no also the bonuses constituting the lion's share of the wage of the adviser, the employee of the lowest link, whose base salary - only 45-80 dollars a month. Many have left at own will. The general staff, by estimations of employees, was reduced already approximately to 5000-6000 persons, some more thousand wait for the turn. Last year in bank was more than 20 000 employees.

In the Russian branches of some western banks the silent panic already reigns: people are afraid even to say aloud a word "dismissal".

As a result of universal reductions by the end of 2008 in the work world market occurrence of an order of 150 000 unemployed bankers is expected.

Crisis heat at ocean of cash The USA are ready to fill up world banks with cheap dollars

The real result of the financial summit of countries G7 has been declared only yesterday: since October, 13th ФРС, the European Central Bank, Bank of England, Natsbank of Switzerland and Bank of Japan will grant banks at auctions on a flat rate dollar liquidity for the term up to 84 days in unlimited volumes till May, 2009. For the first time in history work in the conditions of complete failure of regulators of any monetary policy is necessary to a world financial system.

The final statement of Ministers of Finance of countries G7 about the new co-ordinated measures of financial regulators of the largest economy of the world on struggle against a financial crisis is deciphered only yesterday (the meeting passed on October, 11-12th). The Federal Reserve System of the USA (ФРС), ЕЦБ, the Bank of England and Central Bank of Switzerland declared removal of any restrictions on liquidity granting in US dollars to national banking systems till April, 30th, 2009. Several hours later the Bank of Japan has joined the application on similar conditions also.

Already yesterday all five key Central Banks of the world declared the first auctions without restrictions on the sum. On October, 14th for the term up to seven days will conduct credit mortgaging auction Bank of England, on October, 15th — for the same term banks of Switzerland and Japan, ЕЦБ this very day begins the program of weekly auctions for week term. This week all five countries declare additional auctions for terms 28 and 84 days. Rates at all auctions will be declared the day before their realisations and will be fixed.

Before the Central Bank of five countries conducted dollar auctions with various restrictions under liens of assets, with the floating rate, but always in the limited size. So, the last long-term dollar auction conducted Natsbank of Switzerland on October, 7th on $4 млрд with credit injection term for 88 days with a minimum charge of 1,39 % annual, short-term — on October, 10th for four days under the rate from 2,4 % annual. ЕЦБ declared that will conduct the similar auctions, doing unlimited the offer of dollars in EU (so, EU banks have possibility to participate in tenders and ЕЦБ, both in Switzerland, and in Great Britain), «at least till January, 2009». The spectrum of the instruments will be simultaneously expanded, allowing to compensate inflow of dollars in "the eurodollar" markets. But the monetary policy of all Central Banks of the world was under construction till now on restriction as supplies of liquidity, and rates, now the fixed preauction rates became the unique instrument of regulation of refunding in dollars.

Theoretically the decision to expand possibility of bank refunding in key economy of the world indefinitely could be read and in the application of the Ministries of Finance of countries G7 following the results of meetings in Washington. In the application extended on night on October, 13th, G7 speaks about the plan from five items, in which the first item offers «to use any present means not to admit crash it is system the important financial institutions». However with unlimited refunding of a banking system all over the world economists obviously did not expect experiment. The head of department of strategy of insurance group Standart Life Andrew Milligan has declared that this decision is "much more important", than the joint decrease undertaken on October, 9th by Central Banks of interest rates. From summit G7 continuation of this policy — the adjusted decrease in rates on 0,25—0,5 % expected on October, 15th. To assume that the world financial system will be transferred in essentially other mode of operation, anybody could not. The decision was kept a secret, it was mentioned yesterday in the morning in several performances even by one of authors of idea — the Minister of Finance of the USA Henry Polson.

In the USA time recutting of world financial architecture has been evaluated by the market immediately: at market opening on October, 13th index DJIA has opened a jump upwards more than on 5 % and by the evening across Moscow was in the order hardly below 9000 items. We will note, financial summit G7, obviously, has developed a part and other not declared measures on rescue of financial systems which will be realised at national level. Probably, they will be declared after the next summit of Ministers of Finance any more G7, and G8 in Tokyo on October, 24-25th. Then "seven" can evaluate the first consequences of the decision which cost now is difficult for predicting (in 2008 ФРС has granted Central Banks of the world of $620 млрд, the sums of liquidity which will be thrown out at unlimited auctions, possibly, will be comparable), and also its effect on world inflation and rates of bank crediting to the USA, EU and Japan.

World banks have found an overcoming the crisis

The consortium from 10 largest world banks plans to create an equalization fund in volume of $70 billion for crediting of the finance companies testing an acute shortage of liquidity. However analysts are not assured that the measure will appear effective

The anti-recessionary pool is presented by the American companies Goldman Sachs, J.P. Morgan Chase, Citibank, Bank of America, Morgan Stanley, Merrill Lynch, German Deutsche Bank, British Barclays, Swiss Credit Suisse and UBS. Each of participants of a consortium will introduce to fund on $7 billion



«It seems that the largest investment banks of the world have come to a conclusion that rescue rolling - a handwork rolling, - is considered by the chief of investitsionno-analytical management" Alor Invest "Ruslan Samarin. - Besides, according to the expert, serious fears of the companies which have entered into a consortium, the strongest falling of their capitalisation causes also."Thus"the pool of bank mutual aid” will help to endure difficult times and to comfort the markets, - the analyst believes. - it not in a condition to rescue from bankruptcy of everything, however can quite stabilise position of largest "whales" of a world financial system, and soothingly work on capital market ».



The analyst «the WHALE of Finansa» Dmitry Polevoj has reminded that conversations on necessity of creation of similar fund were already led in a turn of the year. But then all and remains at the stage of discussions. «Most likely, a main objective of such application by the current moment - attempt though somehow to stabilise a situation, having declared that the largest players have no serious problems with liquidity and are ready to use accessible means for intensity decrease in the market, - the expert considers. - not a secret that mistrust on a credit market in connection with latest developments accrues.

The financial organisations in every way try to keep a situation from that when mistrust in a banking system will be thrown on private investors, and they will start to remove means from banks. But how much effective there will be a given measure in more long-term prospect? The question still remains opened».

World banks will increase liquidity of the world markets.

The largest banks of the world have decided to struggle with a world economic crisis by own strength. Banks of the USA, England, Japan and other leading economic states объеденились to put new money resources into circulation.
Today the Bank of England declared that plans to conduct measures on expansion of liquidity of financial markets together with the largest banks of the world, including the Central bank of Europe, Bank of Japan and the Federal Reserve System (ФРС) the USA.


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The bank of England in an official statement declared that today Bank of Canada, Bank of England, the European Central bank, ФРС the USA, Bank of Japan and the Swiss national bank begin the co-ordinated actions in reply to pressure growth in the markets of short-term dollar federal funds.

"Central banks will continue close co-operation and will take all possible measures to soften accruing pressure", - the representative of Bank of England has informed.

The conclusion of $60 млрд American ФРС and Bank of Japan on the Japanese markets and injection $40млрд in Great Britain Bank of England together with the Federal Reserve System of the USA becomes the first actions directed on liquidation of crisis. Monetary injections from Central Banks of Switzerland and Canada at a rate of $20 billion First such operation are planned also will already take place on Thursday.

Meanwhile the American Federal Reserve System has established the demand line of credit in $180млрд for softening of consequences of a world economic crisis. The world markets have immediately reacted to the message on combined action of world Central Banks that has affected a dollar exchange rate, informs AFP.