How much do the Banks owe the Big Boys?

Catalpa

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I know we keep on harping on about how much is owed to the Banks but surely the real question is how much do the Banks owe the International Financiers?

I mean there is no way they had the amount of money on the Books to cover all the loans they gave away to the Cowboys so I presume they borrowed money to help keep their operations ticking over in the meantime?

I mean if you give away money on a loan basis that amount must have originated somewhere - and as I just stated no way the Banks had those sort of readies at the back of the shop.

So they must have borrowed huge sums Abroad to loan back out again as far as I can figure out.

Anyone know how much they owe?
 


zakalwe1

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well, lehman collapsed because it had lent out $38 for every $1 it held on deposits.

having said that, it was the financial markets/treasury division with their penchard for exotic derivatives which they did not understand which collapsed them.
 

atlantic

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Jebus your joking they were allowed to leverage that high are you sure?I have asked this before what were the Irish Banks leveraging at?
well, lehman collapsed because it had lent out $38 for every $1 it held on deposits.

having said that, it was the financial markets/treasury division with their penchard for exotic derivatives which they did not understand which collapsed them.
 

Catalpa

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Thanks for the replies guys but I am somewhat bemused that there has been such a focus on what Irish banks are owed and so little on how much they owe to Foreign Lending Houses in return.

What happens if they come knocking on the door one dark and stormy night and we the People have nationalised the Banks?

Don't let anyone in....
 

atlantic

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Would this be international inter bank lending you are on about?
Thanks for the replies guys but I am somewhat bemused that there has been such a focus on what Irish banks are owed and so little on how much they owe to Foreign Lending Houses in return.

What happens if they come knocking on the door one dark and stormy night and we the People have nationalised the Banks?

Don't let anyone in....
 

zakalwe1

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Jebus your joking they were allowed to leverage that high are you sure?I have asked this before what were the Irish Banks leveraging at?

Well, capital adequacy ratios limit the amount of loans to deposits to be Eur12.50 to Eur1.

Most banks would not have pushed those limits tho.
 

On The QT

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The capital ratio for Irish banks is approx 1:8

I.E. They have one euro on deposit for every 8 they lent out. With the goverments recapitalisation theyve increased this ratio but with all the 'impaired charges' looming (always have a lol at that) its gona take a fair chunk out of their capital
 

atlantic

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So the more money government give them ,they can increase it to 1:10,1:12 ?
The capital ratio for Irish banks is approx 1:8

I.E. They have one euro on deposit for every 8 they lent out. With the goverments recapitalisation theyve increased this ratio but with all the 'impaired charges' looming (always have a lol at that) its gona take a fair chunk out of their capital
 

richie268

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Sep 14, 2007
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I know we keep on harping on about how much is owed to the Banks but surely the real question is how much do the Banks owe the International Financiers?

I mean there is no way they had the amount of money on the Books to cover all the loans they gave away to the Cowboys so I presume they borrowed money to help keep their operations ticking over in the meantime?

I mean if you give away money on a loan basis that amount must have originated somewhere - and as I just stated no way the Banks had those sort of readies at the back of the shop.

So they must have borrowed huge sums Abroad to loan back out again as far as I can figure out.

Anyone know how much they owe?
Ireland's Debt in Dollars to other European financial institutions as of May last is as follows
$188 billion Britain
$184 billion Germany
$60 billion France
$18 billion Italy
$16 billion Spain
$22 billion Portugal
+ the rest
 


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