Risk indicator? The Bundesbank's claims against the European Central Bank have risen to a record level. They will continue to rise, but this doesn't necessarily reflect deeper problems, writes a board member at the German central bank. Published on February 7, 2017 4:29 pm Why it matters Why it matters Central bank transfers in the euro zone, known as Target 2 balances, are a way for settling payments within the currency union, but are also seen as a barometer of the single currency zone’s financial health if there is a substantial mismatch between countries. Facts Facts Target 2 balances rose sharply during the financial and sovereign debt crisis in 2012, with the German central bank running a surplus and Greece, for instance, a deficit. Risks can materialize from the T2 balances if a country withdraws from the monetary union, something seen as possible with regards to Greece in 2012. Imbalances declined again after ECB President Mario Draghi’s … [Read more...] about Claims Spike in Europe’s Central Banking System
S t bank locations
Good Morning Britain’s presenting team pretended to steal the news desk as they gave their last broadcast from the studios where the show is filmed ahead of ITV’s refurbishment of its historic studios on London’s South Bank.Today, Friday April 13, is the last day shows including GMB, Lorraine, This Morning and Loose Women will broadcast from the South Bank, where ITV has been located for around four decades. From April 16, shows will air from a new location in White City, also home to various BBC broadcasts, while the South Bank is redeveloped.Presenter Kate Garraway opened this morning’s show and joked: “You know what it’s like when you move house and you’ve got your little kind of emergency bag for the car… but anything outside of that we can’t find this morning”.The show also saw weather reporter Laura Tobin present her first weather forecast since returning from maternity leave.She said: “I just really wanted to come … [Read more...] about ITV shows bid farewell to South Bank location ahead of refurbishment
Sunlight bounced off Goldman Sachs Group Inc.’s glass-and-steel Manhattan headquarters on a warm August morning in 2013. Eyes locked on their screens, traders and engineers shifted in their seats as exchanges prepared to open.Unbeknownst to anyone, the machines were about to revolt.Bam. Bam. Bam. Dummy trade signals that were supposed to stay within the company’s electronic systems broke loose and slammed into computers at the New York Stock Exchange’s options markets. So many orders crashed through that by 8:44 a.m., safeguards within Goldman Sachs sprang into action, severing the connection between the company and the exchanges.It took ages for anyone to notice the anomaly. At 9:01 a.m. an employee finally saw the blockage and lifted it. A river of mispriced orders surged through the restored connection. Minutes later, the volume triggered another stoppage. And another. And another.By the time the trades were blocked for the last time, less than an hour after they … [Read more...] about Wall Street’s Big Banks Are Waging an All-Out Technological Arms Race
By March 27, 2018, 7:18 AM EDT London has flourished as a financial center for decades in part because global banks, from offices around the bustling City of London district, could sell their services freely around the European Union. With the clock ticking on Britain’s exit from the 28-nation trading bloc — the complicated international divorce known as Brexit — the city’s status as a banking hub is under threat. If U.K. firms lose easy access to Europe’s $19 trillion economy, which seems likely under the terms laid out by Prime Minister Theresa May, Britain becomes a far less attractive place to do business.1. How big a loss is this for London?London could lose 10,000 jobs in banking and 20,000 roles in the larger field of financial services, according to Bruegel, a Brussels-based think tank. Other estimates range wildly from as many as 232,000 jobs to as few as 4,000, so view them with some skepticism. Executives at banks including Morgan … [Read more...] about Will Brexit Trigger an Exodus of Banks From London?
Ten years after the financial crisis, Europe has too many banks making too little money. One reason is that rock-bottom interest rates have eaten into lending revenue. Meanwhile, misconduct fines and losses on bad loans have eroded profit, and mobile technology has made many branches redundant. The answer for bankers and some of their supervisors is to merge. But the continent’s still-fragmented regulation and overriding national interests make that harder than it sounds.1. How would mergers help?At a systemic level, the charm of cross-border banks lies in their ability to break the ’doom loop’ between banking systems and national governments. Local bank failures nearly bankrupted Ireland, Cyprus and Spain in the euro crisis. Numerous governments still depend to a high degree on domestic banks to fund their debt. Cross-border banking groups can absorb a sovereign default better than a local bank with more concentrated exposure to its home government.At the level of … [Read more...] about Why Large European Bank Mergers Still Face Hurdles: QuickTake