Financial regulator 'urges British banks to prepare for the collapse of the euro'

[dipsydoodle]

Source: Daily Mail

British banks must brace themselves for the chaotic break-up of the euro, the City watchdog has warned.

The head of the Financial Services Authority told the UK’s biggest lenders to draw up contingency plans for the collapse of the single currency.

Hector Sants, who is in charge of regulating the banking system, gave the order during crisis talks with senior executives from high street players including Barclays, HSBC, Lloyds Banking Group, Royal Bank of Scotland and Santander.

City sources said big insurance companies were also urged to prepare for the exit of one or more countries from the eurozone.





Read more: http://www.dailymail.co.uk/news/article-2068138/FSA-urges-British-banks-prepare-collapse-euro.html

[tjwash]

1. If Germany pulls out it will be a bloodbath for the EU...the greenback will go through the roof...

...and, believe it or not, that will piss off US multinationals to no end. A lot of US multinationals are way overextended on the euro and light on the US dollar.

German banks are basically carrying the whole EU right now.

At least this whole mess has caused the "lets get the amero going" propaganda to finally cease. That was a fucking bush and cheney hardon that was a disaster waiting to happen.

[dipsydoodle]

2. Germany is the least likely

If they returned to the Mark they would overnight have the world's strongest currency. As are result it destroy their ecomony which is export based.

[tjwash]

4. Oh...there's no chance in hell they pull out...their economy would crash in a week.

I'm just saying that's the only way that the Euro would collapse.

[CountAllVotes]

6. sort of like reaping what has been sowed

IMO that is. We'll see no doubt. I heard on the news last night at about 1:00 a.m. that this would be happening in December 2011.

That means hang-on to your hat as this could get very ugly very fast!

:kick: & recommend.

[DallasNE]

3. I Think That Is A Lot Less Likely To Happen

Following today's announcement that several central banks will engage in a version of quanitative easing to pump money into the system. This is probably why Germany finally relented and allowed the European Central Bank to be a player in this move, which was long overdue. For the first time in quite sometime I am bullish on events going forward. Now we need to align our fiscal policy with these monetary policy moves. I hope Congress is listening and perhaps they are a little bit now that Republicans seem to be on board to the payroll tax extention. In fact, the timing of this announcement could be tied to yesterday's announcement by Republicans on the payroll tax issue. Both are big wins for the Obama administration.

[tjwash]

5. The DOW is up close to 400 today on that bit of news

A rare bit of good news for my portfolio.

[russspeakeasy]

7. You are insolvent; work from there.