Is Rene Benko’s bankruptcy the straw that breaks our fragile world economy?

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Sometimes, this is all it takes…those darn real estate bubbles.

Goliath falls: Sudden bankruptcy of financial empire exposes Europe’s real estate bubble

“for Swiss banks – what happened?
With Signa Real Estate Management Germany GmbH succumbing to insolvency, Benko’s meticulously orchestrated financial symphony began to unravel. The abrupt surge in bad loan provisions by Julius Baer signposted a profound crisis. The market’s unforgiving response, with shares plummeting, laid bare the entanglement of Swiss banking, once deemed a bastion of stability, with Benko’s financial empire.

“The looming specter of a domino effect raises a pressing question: who will be the next participant in this financial drama? ”

“The unfolding drama becomes a stark reminder of the fragility inherent in the marriage of economic interests and political maneuvering.”

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Swiss Banks–> Vatican–> TPTB

Property and retail giant Signa declared insolvency on Wednesday after last-ditch attempts to secure fresh funding failed, making it the biggest casualty so far of Europe’s property crash.

Ruh-roh! FDIC-Insured Institutions Q3 2023: Unrealized losses on securities totaled $683.9 billion in the third quarter, up $125.5 billion (22.5 percent) from the Q2 2023. Unrealized losses on held-to-maturity securities totaled $390.5 billion.

Source: https://www.fdic.gov/analysis/quarterly-banking-profile/qbp/2023sep/qbp.pdf

TLDRS:

  • FDIC-Insured Institutions Q3 2023: Unrealized losses on securities totaled $683.9 billion in the third quarter, up $125.5 billion (22.5 percent) from the Q2 2023.
    • Unrealized losses on held-to-maturity securities totaled $390.5 billion.
  • Net Income Decreased From the Prior Quarter, Driven By Lower Noninterest Income and Higher Realized Losses on Securities
  • The Net Interest Margin Increased From the Prior Quarter to 3.30 Percent
  • Community Banks Reported Lower Net Income From the Prior Quarter
  • Loan Balances Increased From Last Quarter and One Year Ago
  • Total Deposits Declined For a Sixth Consecutive Quarter
  • First and second quarter income benefitted from non-recurring gains from the accounting treatment for the acquisition of the three large bank failures this spring.
    • Excluding these one-time gains, net income would have been roughly flat for the past four quarters.
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AC

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