Austerity For Banks

Lazy, incompetent, fee sucking banks and financial institutions have had a couple of great decades making money as easy as stealing candy from a baby. In fact stealing is what they mainly have been occupied with charging outrageous fees and providing ludicrously low interest rates for savers and at the same time using this cheap financing in order to make their own highly leveraged, immencly risky derivates business.

As an exaple of outrageous fees The Swedish bank SE Banken branch office in Switzerland charged me 10.000 sek in order for me to get an account statement needed to present to the Swedish tax authorities.

Now that business model, transferring all risks to the taxpayers, is starting to unwind as well as also countries are facing defaults.

In fact what were now talking about is a complete remake of the financing sector as we know it.

Via austerity measures - this time not towards the taxpayer and savers - but instead towards the banks themselves that now to a greater extent has to take the hit.

First what will happen is layoffs on a grand scale all over this sector. Then we will start to see them having to sell out their assets e.g. business etc to government/taxpayers as their solvency clearly is in jeopardy and today only is saved via creative accounting e.g. booked value rather than real market value.

Bottom line the re-regulation of the financial sector has begun as taxpayers now to a greater extent demand collateral for their bailing out of banks. Within 5 years well see the result - a very much smaller financial sector as compared to the overall economy where sure no player going forward will be allowed to be too big to fail and the banks function to create money via the fractional banking system has been removed.

“Europe's biggest bank faces an urgent need for action as more than two-fifths of its businesses are not delivering their cost of capital,” Reuters writes. In May, HSBC said it would “sell, shut or slim down retail operations in 39 markets, where operations are sub-scale and unprofitable and is looking to sell its U.S. credit card arm and shrink its network of 475 U.S. branches.”
http://news.efinancialcareers.com/News_ITEM/newsItemId-33986

Nationalize the Fed. - End Banks Power to Create Money
http://www.youtube.com/watch?v=V_kbyAl3-AM