|Royal Bank of Scotland 5Y CDS (bloomberg.com)|
Royal Bank of Scotland 5Y CDS
Lloyds TSB Bank PLC Bank 5Y CDS
BNP Paribas SA 5Y CDS
UBS AG 5Y CDS
UniCredit SpA 5Y CDS
Societe Generale SA 5Y CDS
Banco Santander SA 5Y CDS
Credit Agricole 5Y CDS
ING Groep NV 5Y CDS
Banco Popolare SC 5Y CDS
Commerzbank AG 5Y CDS
Bank of Ireland 5Y CDS
Deutsche Bank 5Y CDS
Two and a half years later, after taxpayers bailed out all of these banks, their credit default swap spreads are at record "wides" again! Read these articles at The Telegraph and PragCap: "Cost of insuring RBS debt reaches historic high" (Telegraph 8/24, Bloomberg chart), Market crash 'could hit within weeks', warn bankers" (Telegraph, 8/24), "CDS Market To Euro Banks – This Is Worse Than 2008" (Prag Cap, 8/22 with Danske Bank chart of Barclays, Credit Agricole, Societe Generale, Unicredit, Banco Santander, BNP Paribas CDS). With Royal Bank of Scotland's CDS making new highs, why the hell was its stock (RBS:NYSE) up 7.37% yesterday? Here are charts of RBS's stock and 5Y CDS. Its stock looks like Bank of America, no?
|Royal Bank of Scotland Stock (stockcharts.com)|
"Investors are worried that during times of quickly deteriorating asset prices, high volatility, and rising risks to the economic recovery, banks could be left with too little capital and a potential lack of support since governments are constrained by high indebtedness," UniCredit credit strategist Christian Weber said."
Market crash 'could hit within weeks', warn bankers (The Telegraph, 8/24/2011)
"A more severe crash than the one triggered by the collapse of Lehman Brothers could be on the way, according to alarm signals in the credit markets."
"Insurance on the debt of several major European banks has now hit historic levels, higher even than those recorded during financial crisis caused by the US financial group's implosion nearly three years ago."
Cost of insuring RBS debt reaches historic high (The Telegraph, 8/24/2011) *Bloomberg chart here
"The cost of insuring the junior debt of Royal Bank of Scotland has hit an all-time high as credit market investors have become increasingly nervous about the funding of major Western banks."
UK bank insurance mis-selling complaints jump in H1 (Reuters, 8/24/2011)
"Complaints against controversial loan insurance by customers at two of Britain's top banks rose by 25-30 percent in the first half of this year from the previous six months and may rise further in the current period."
We've Placed RBS Under Review (Morningstar, 8/24/2011)
"We're revisiting our outlook for Royal Bank of Scotland in light of the U.K. and eurozone's slow economic recovery"
Bank borrowing costs hit highest level in a year (Reuters, 8/24/2011)
"(Reuters) - The cost for banks to borrow short-term dollar funds from other banks rose to the highest level in a year on Wednesday as large U.S. money funds continued to pull back on making loans to Europe and as fears over bank counterparty risk increased."