Banks Vie With Nations to Sate $2T Funding Need

[dipsydoodle]

Source: Bloomberg News

Europe’s banks will compete with their governments to borrow $2 trillion next year as the two groups refinance maturing bonds and bills.

Euro-area governments have to repay more than 1.1 trillion euros ($1.5 trillion) of long- and short-term debt in 2012, with about 519 billion euros of Italian, French and German debt maturing in the first half alone, data compiled by Bloomberg show. European banks have about $665 billion of debt coming due in the first six months, with a further $370 billion by the end of the year, according to Citigroup Inc., based on Dealogic data.

“Serious investors are fleeing from both European sovereign and European bank debt in droves,” said Mark Grant, a managing director at Southwest Securities Inc. in Fort Lauderdale, Florida. “The financials of both classes are in question, and nothing of substance has been achieved to correct the problems and quell the European crisis.”

The yield premium investors demand to hold bank bonds rather than benchmark government debt has soared to 448 basis points, the most since January 2009, according to Bank of America Merrill Lynch’s EUR Corporates, Banking Index. The average spread between January 2005 and January 2007 -- before the crisis struck -- was 38 basis points, the data show.

Read more: http://www.bloomberg.com/news/2011-12-02/banks-vie-with-nations-to-sate-2t-need.html

[DreamSmoker]

1. Just more dept on the American People

And who do you think is paying for all this????????
Yes its us, the American People..
Did you know that the Banks just got another $20 Billion Dollars just last Quarter???
The Reality is the American People are being hoodwinked by All in Government..
It snot by Party lines either..

I am God Damned Sick of the Lies and Government manipulations to keep a lid on the Biggest Crises this Country has faced
since the Great Depression...

So much Lobbyist Money has flooded through Congress that our Reps have been payed off with huge amounts of Campaign Money..
They no longer look out for our interests...
They now serve their Cash Cows...

[Safetykitten]

2. Thank God we were screwed!