Author: BlackMask Financial

‘We basically had a pretty near meltdown of some of the core financial markets,’ says Andrew Bailey

The Bank of England saved the UK from effective insolvency because of the coronavirus pandemic, its governor has said. Andrew Bailey told Sky News that the government would have struggled to fund itself had the Bank not intervened during the market “meltdown”. “We basically had a pretty near meltdown of some of the core financial markets,” Mr Bailey said. “We had a lot of volatility in core markets: the core exchange rate, core government bond markets. “We were seeing things that were pretty unprecedented, certainly in recent times. And we were facing serious disorder.” He said the Bank intervened with £200bn of quantitative easing to prop up the struggling economy. Asked what would have happened if the Bank had not intervened, he replied: “I think the prospects would have been very bad. It would have been very serious. “I think we would have a situation where in the worst element, the government would have struggled to fund itself in the short run.” Mr Bailey also warned that many companies will not survive the coronavirus recession. “There will be some activities which people did before Covid which they will just not go back to. It’s not going to be the same for some period of time,” he said. “So I think there’ll be some activities and companies who say they had a perfectly viable business model before and weren’t over-indebted, but sadly, habits have changed. “There will be companies who won’t survive – that’s unfortunately the case.” It comes as the governor signalled a shift in policy which could see the Bank selling off bonds before it starts raising interest rates again. Mr Bailey said the Bank might be restrained in what it could do in the future due to the amount of quantitative easing on its books. Last week, the Bank announced it would increase its stimulus package to £745bn. “The current scale of central bank reserves mustn’t become a permanent feature,” Mr Bailey wrote in an option piece for Bloomberg. “As economies recover, it’s likely that some of the exceptional monetary stimulus will need to be withdrawn, including by reducing reserves.” He added: “When the time comes to withdraw monetary stimulus, in my opinion it may be better to consider adjusting the level of reserves first without waiting to raise interest rates on a sustained basis.” The Bank’s balance sheet was already high before the coronavirus pandemic struck earlier this year, forcing it to step in with more help for the flailing economy. Since Mr Bailey took over as governor in March, the Bank’s baseline interest rate has been slashed to 0.1 per cent, and the Bank has promised to buy billions of pounds worth of bonds and lend billions to large companies. “Elevated balance sheets could limit the room for manoeuvre in future emergencies,” Mr Bailey said.  The governor said Covid-19 had posed the most serious threat to the stability of the financial system since the financial crisis more than a decade ago. Mr Bailey wrote: “The response has included a major programme of asset purchases and lending by central banks, with a corresponding growth of balance sheets. “This has been the right thing to do to reduce borrowing costs, boost cash flows and more broadly support economies, and it has shown how essential it is to have truly independent central bankers.“But the financial system mustn’t become reliant on these extraordinary levels of reserves.” Nick Note: I hope you are getting this. The global financial system is collapsing before your very eyes. THeir is NO saving it. And it will end up in a no shit global depression. If your smart and we get a little bit if luck I MAY be able to save you and even prosper you in the process!

BERLIN/MUNICH/FRANKFURT (Reuters) — German payments company Wirecard collapsed on Thursday after disclosing a massive financial hole in its books, leaving creditors owed nearly $4 billion facing an almost complete wipeout. The implosion of the fintech company comes less than two years after it won admission to Germany’s prestigious DAX stock index. Worth $28 billion at its peak, Wirecard becomes the first DAX company to go out of business. Shares in Wirecard plummeted 80% to their lowest since January 2006 after the company said it was filing for insolvency. Wirecard’s sudden demise leaves creditors owed 3.5 billion euros ($3.9 billion), a source close to talks with creditors said. Of that amount, it has borrowed 1.75 billion euros from 15 banks and 500 million euros from bond investors. “The money is gone,” said a source at one lender. “We may recoup a few euros in a couple of years, but will write off the loan now.” Shares have now lost 98% since auditor EY refused to sign the 2019 accounts last week, forcing out long-time CEO Markus Braun. EY has audited Wirecard’s accounts for more than a decade. Wirecard said in a two-paragraph statement that its new management had decided to apply for insolvency at a Munich court “due to impending insolvency and over-indebtedness”. It was also evaluating whether to file for insolvency proceedings for its subsidiaries. The source close to talks with creditors said that although the company had a healthy core, about two-thirds of its sales had been faked in its accounts. “There is no way that they could repay their total debt of 3.5 billion euros with that core, notwithstanding all the legal challenges ahead of them,” the source said on condition of anonymity. The Munich prosecutor’s office, which is already investigating Braun on suspicion of misrepresenting Wirecard’s accounts and of market manipulation, said: “We will now look at all possible criminal offences.” Braun has been freed on bail of 5 million euros and remains a suspect. Former chief operating officer Jan Marsalek is also under suspicion and is believed to be in the Philippines, according to justice officials there.  Nick Note: Welcome to the German Enron. I do not believe they ever made any money. Hear me well here. Their is 20 billion missing and it will crush the balance sheets of many banks……

BERLIN/MUNICH: Wirecard said on Thursday (Jun 25) it was filing for insolvency after disclosing a US$2.1 billion financial hole in its accounts. The move makes it the first sitting member of Germany’s blue-chip share index to go out of business. Shares were suspended by the Frankfurt Stock Exchange before the news. They have lost more than 90 per cent since auditor EY refused to sign off on the 2019 accounts last week, leading to the resignation of long-time CEO Markus Braun. Wirecard said in a two-paragraph statement that its new management had decided to apply for insolvency at a Munich court “due to impending insolvency and over-indebtedness”. Nick Note: read on to see how they did it. And here is a news flash their are 100 more fintech assholes playing the same game. And they will SOON crash and burn. Ponzi schemes fail when they run our of suckers lining up and the Holidayinn convention center with bags of money screaming they want their chance to get rich. Robin Hood is really Robbing Hoodlums.

Continue reading “Wirecard files for insolvency, becoming first DAX member to fail”

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AUSTIN — Gov. Greg Abbott sternly warned Texans of “rampant” spread of coronavirus that took the state to a new high Tuesday of more than 5,000 new cases in a single day. Saying Texans should stay home unless they have a good reason to venture out, Abbott late Tuesday afternoon gave local officials more powers to limit public gatherings during the upcoming Fourth of July weekend. He expanded the ability of mayors and county judges to restrict outdoor gatherings of more than 100 people — down from the previous limit of more than 500 people in outdoor gatherings. On KENS-TV in San Antonio late Tuesday, Abbott made it clear it will be up to cities and counties to decide whether face coverings will be required at mass gatherings. “I did authorize local officials to have the authority to establish regulations in gatherings of 100 or more people,” he said. “This was intended to allow local authorities in particular to regulate gatherings for Fourth of July celebrations. We did not specify what restrictions or regulations they could impose. It’s possible they could require masks in such an environment. It’s going to be up to local officials in that regard.” Abbott also told the Texas Health and Human Services Commission to enact emergency rules that provide strict health and safety standards and procedures related to COVID-19 for child care centers in Texas. After about eight weeks of reopenings, the moves were a shift for Abbott, who’s also adopted a more urgent tone in his public pronouncements this week. “These are just some of the steps Texas will take to contain the rise in COVID-19 cases and hospitalizations,” Abbott said in a written statement. “I urge all Texans to do everything in their power to reduce the transmission of the coronavirus by wearing a face mask, washing their hands often and staying six feet apart from others.” The decrees were based on data showing an increase in COVID-19 transmission stemming from large gatherings and expanded use of child care centers, the governor’s office said in a release. Day cares, which Abbott freed up for children of nonessential workers on May 18, have been slammed, as The Dallas Morning News reported over the weekend. As of Friday, 410 total cases of coronavirus — 267 staff members and 143 children — had been reported at 318 licensed child care operations across the state, according to the commission. That’s a sharp increase from the 339 cases the agency reported Thursday and the 210 it shared with KVUE-TV in Austin on June 15. Late Tuesday, David Feigen, early childhood policy advocate for the group Texans Care for Children, welcomed Abbott’s directive for tighter standards. But he warned that to avoid “increasing costs to Texas families,” more state financial and other assistance may be required. “As COVID cases in child care rise, we appreciate the governor’s attention to the health and safety of young kids and staff in child care centers,” Feigen said in a written statement. “Depending on what these new rules require, Texas leaders will need to ensure that new standards are coupled with new supports. Quality providers will do their best to follow the rules and guidance from the state, but without sufficient resources and technical assistance, these costs will fall on cash-strapped families.” Earlier Tuesday, Abbott foreshadowed his new actions on outdoor gatherings and day cares — the record number of positive tests in the state. “Statewide, there’s going to be an all-time record set today in the number of people testing positive of over 5,000,” he told KRIS-TV in Corpus Christi in a live appearance via satellite from Austin. The previous high was 4,430 positive test results on Saturday. On Tuesday, Dallas County also reported a record daily high of 445 additional infections, and 7 deaths related to the virus. Statewide, hospitalizations have been breaking records every day for more than a week Abbott began two noon newscast interviews with very pointed references to the new daily record of more than 5,000 new, lab-confirmed cases of COVID-19. The actual number of new cases reported by the state later in the afternoon was 5,489, plus 4,092 hospitalizations — the 12th straight day with a new record. The state reported 28 deaths Tuesday. “There remain a lot of people in the state of Texas who think that the spread of COVID-19 is really not a challenge,” he told KBTX-TV in College Station. “The coronavirus is serious, is spreading in Brazos County, across the entire state of Texas.” “Importantly, because the spread is so rampant right now, there’s never a reason for you to have to leave your home unless you do need to go out,” he said. “The safest place for you is your home.” Abbott, who began reopening the state in late April, lately has pointed in dismay at anecdotal evidence of poor social distancing practices and lack of mask wearing by some Texans during the Memorial Day holiday and in the early part of this month. Large-scale protests of George Floyd’s killing also have been a cause of public-health concerns, he has said repeatedly. On Monday, the Republican governor warned he could impose further restrictions if coronavirus cases continue to rise. He offered no specifics. Democrats pounced, accusing him of doing nothing and reiterating their charge he reopened businesses too soon, before testing and contact tracing were ramped up sufficiently. On Tuesday, Abbott noted that in a June 3 executive order, he gave cities and counties authority to regulate any public gatherings in excess of 500 people. It applies to gatherings other than those that were specifically mentioned and regulated in his various edicts, which targeted such activities as religious services, youth camps, sporting events and amusement parks. At the time, Abbott noted that Fourth of July was coming. The holiday was on his mind again Tuesday. “We’re looking at ways of addressing crowds that could be gathering for the Fourth of July,” he said on KRIS. “We are reevaluating that right now,” he said of the June 3 order, “to make sure that local officials have even greater control, … to make sure that they will be able to establish standards that can prevent the spread of COVID-19.” Abbott continued, “We did see an increase after Memorial Day. We saw an increase in the early part of June. We need to make sure that we do have the flexibility to reduce crowds in ways that will reduce the spread of COVID-19.” On KBTX, Abbott said he’s taking action to reduce infections, such as ordering a crackdown on bars by the Texas Alcoholic Beverage Commission and sending tests and other resources to coronavirus hot spots. “So there are measures that are being taken to make sure that we are immediately responding to this, as well as additional announcements that may be coming later today and later tomorrow, as well as during the course of the week,” he said. Nick Note: It is self evident that the virus is unstoppable.

NEW YORK (AP) — New York, Connecticut and New Jersey will require visitors from states with high infection rates to quarantine for 14 days, New York Gov. Andrew Cuomo said Wednesday. “We now have to make sure the rates continue to drop,” Cuomo said. “We also have to make sure the virus doesn’t come on a plane again.” Cuomo announced what was called a “travel advisory” at a briefing jointly via video feeds with New Jersey Gov. Phil Murphy and Connecticut Gov. Ned Lamont, both fellow Democrats. The states’ health departments will provide details of how the rule will work, Murphy said. The announcement comes as summer travel to the states’ beaches, parks and other attractions — not to mention New York City — would normally swing into high gear. Visitors from states over a set infection rate will have to quarantine, Cuomo said. As of Wednesday, states over the threshold were Alabama, Arkansas, Arizona, Florida, North Carolina, South Carolina, Washington, Utah and Texas. Nick Note: Your President says STOP TESTING. And he told you its a little cold……. If you believe that shit please get out out of my life Now! I only If you want to deal with serous people.  I want to give you a god chance at survival. Both your health and your wealth.