Seven years have now passed since the credit boom started in 2005, which initially led to a fight for market share between the banks and, ultimately, a battle for their survival. Europe is, once again, in trouble. And Frederick the Great's covered bonds are the must-have fashion item among lenders desperate to preserve their capital.
Nearly 250 years ago, in 1763, Europe’s great powers were in deep financial trouble, after fighting themselves to a standstill in the Seven Years’ War. Louis XV’s France, very much on the losing side, was set on a trajectory which led to financial crisis and revolution. Prussia’s Frederick the Great, with Britain, won the war. But that did not stop Federick worrying about the mountain of debt he had run up.
Hong Kong bank Stanhill Capital Partners has bought a controlling stake in Sovereign Gold, an investment company focusing on British sovereign gold coinage, as demand for gold remains strong.
Hong Kong bank Stanhill Capital Partners has bought a controlling stake in Sovereign Gold, an investment company focusing on British sovereign gold coinage, as demand for gold remains strong.
What was going on nearly 10 years ago represented the first indication that the health of Swiss private banking was beginning to suffer. The boom in between only covered up the widening fault lines.
Back in the early noughties, two originally family-owned Swiss banks called Vontobel and Bank Sarasin sought outside shareholders to bolster their ailing balance sheets. Both banks had been hurt by the bursting of the tech bubble and needed new investors to get them through a tough period.
Unemployment on both sides of the Atlantic is shooting towards record levels, stock markets are moribund and company profits are under threat. Sentiment has been wrecked by investors borrowing too much, banks lending too much and governments spending too freely.
Unemployment on both sides of the Atlantic is shooting towards record levels, stock markets are moribund and company profits are under threat. Sentiment has been wrecked by investors borrowing too much, banks lending too much and governments spending too freely.
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