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McKinsey: Half the World’s Banks Too Weak to Survive Downturn
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SomeOneSomeWhere Online
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McKinsey: Half the World’s Banks Too Weak to Survive Downturn
Quote:More than half of the world’s banks are already in a weak position before any downturn that may be coming, according to a report from consultancy McKinsey & Co.

A majority of banks globally may not be economically viable because their returns on equity aren’t keeping pace with costs, McKinsey said in its annual review of the industry released Monday. It urged firms to take steps such as developing technology, farming out operations and bulking up through mergers ahead of a potential economic slowdown.

“We believe we’re in the late economic cycle and banks need to make bold moves now because they are not in great shape,” Kausik Rajgopal, a senior partner at McKinsey, said in an interview. “In the late cycle, nobody can afford to rest on their laurels.”

https://www.bloomberg.com/news/articles/...insey-says

Now obviously they want to sell some top dollar consulting, but the satanic elite of which McKinsey definitely is a part always gives hints of what is to come to increase the feelings of powerlessness + some occult meme magic I guess.

The next crisis which might come up next year is predicted to be way worse than the 2008 housing crisis so you might want to pull your shekels out of stocks and small startup banks as the digits in your bank account might go kaput with big gov unable to bail out everyone.
10-22-2019 02:01 PM
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AntoniusofEfa Offline
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RE: McKinsey: Half the World’s Banks Too Weak to Survive Downturn
Good. Let it burn. I am tired of seeing irresponsible cunts who cannot afford a pair of decent shoes driving around in 60 K EUR SUVs bought with 0% credit. I am tired of companies and universities having extra money to throw around on 3rd gender bathroom conversions and all kinds of diversity committees. There is too much easy money floating around.

On traditional banks: they are indeed a thing of the past. As a private client, I can do 100% of what I need online. My Bank (a local savings bank) has the biggest office building in the medium-sized city it serves. The bank also does a total remodel every few years. They still live in the luxury and excess of Germany in the 80s. If they increase the fees again in 2020, I am out.
10-22-2019 03:57 PM
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kosko Offline
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RE: McKinsey: Half the World’s Banks Too Weak to Survive Downturn
What happened to all the cash these banks were supposedly hording?
10-22-2019 04:32 PM
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jordypip23 Offline
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RE: McKinsey: Half the World’s Banks Too Weak to Survive Downturn
(10-22-2019 04:32 PM)kosko Wrote:  What happened to all the cash these banks were supposedly hording?

Probably Jamie Dimon's bank account heheh.

[Image: image.png]

[Image: Dimon-Meme-50percent.jpg]
10-22-2019 04:54 PM
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Tail Gunner Offline
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RE: McKinsey: Half the World’s Banks Too Weak to Survive Downturn
One of the most overlooked problems with the Western banking system is both obvious and also routinely overlooked by the heads of banks: the inherent fragility of an interconnected banking system.

I just finished reading James Rickards' book "Aftermath" (highly recommended). He is also a consultant to the CIA and some large banks. He was brought in to meet with the board of directors of Morgn Stanley. The members of the board of directors touted the bank's improved safety, risk management, reduction of risky trading strategies, and its overall robustness. Rickards agreed with that analysis.

Rickards then also stated that the bank would have a high overall risk of failure during another 2008-type financial panic. Why? Because of the systemic risk from a banking system that is unstable, fragile, and untenable because it is based on fractional reserve banking and derivatives. In other words, a broken banking system will also drag down stronger, more prudent (at least by Western standards) banks. Unless the Western banking system as a whole is fixed on a fundamental level, there will be another financial panic. Not surprisingly, Rickards recommends gold as a hedge.
(This post was last modified: 10-22-2019 11:39 PM by Tail Gunner.)
10-22-2019 11:31 PM
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AntoniusofEfa Offline
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RE: McKinsey: Half the World’s Banks Too Weak to Survive Downturn
The well off are hoarding also Arts, classical cars, rare books, and basically anything that is a one off that cannot be replicated. A friends friend is in the classical arts business, and he is extra busy since the start of 2019.
(This post was last modified: 10-23-2019 01:29 AM by AntoniusofEfa.)
10-23-2019 01:28 AM
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Easy_C Offline
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RE: McKinsey: Half the World’s Banks Too Weak to Survive Downturn
There's a couple of major reasons why.

1: The "stress tests" rely on the assumption that there's always a matching bid or ask. In a real world market crash this assumption breaks and the result is exponentially worse.

2: Most of your risk and control functions are useless. They're designed to ensure that the banks are churning out the mountains of paperwork that the regulators, who are generally lazy and incompetent, demand to see from the banks. The regulators have a CYA mentality focused on paperwork generation which forces banks to follow suit often at the expense of actual risk management

3: Everyone is working on some extremely stupid assumptions (but ones taken for granted in the top-tier universities and institutions that form the consensus among Financial Services) regarding the actual sustainability of the interest rate environment and how economic factors work that don't hold up in real life.


The first bank to go is likely DB.

Quote:The well off are hoarding also Arts, classical cars, rare books, and basically anything that is a one off that cannot be replicated. A friends friend is in the classical arts business, and he is extra busy since the start of 2019.

That's an understatement. Keep in mind you can't even hoard gold physically if you're ultra-rich. You CAN take a painting worth a few million across borders very easily.
10-23-2019 02:53 AM
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Arado Offline
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Post: #8
RE: McKinsey: Half the World’s Banks Too Weak to Survive Downturn
Interesting post but did we really need another thread for this? We already have a couple stock market and investing threads, no need to rehash the same bullish/bearish information.
10-23-2019 07:52 PM
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Simeon_Strangelight Offline
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Post: #9
RE: McKinsey: Half the World’s Banks Too Weak to Survive Downturn
It's a relevant topic, because the next bailouts will go together with bail-ins - confiscations of bank assets of the useless eaters:

https://www.henrymakow.com/2019/10/are-w...risis.html

https://www.henrymakow.com/2019/10/antho...ndard.html


We will see how long we have before the next hit.


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(This post was last modified: 10-28-2019 06:39 AM by Simeon_Strangelight.)
10-28-2019 06:39 AM
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