European banks: the fallen status and loss of profit

Everyone strives for comfort and complete safety. The safety of property and money takes the priority position. Most people trust storing their savings in banks. The main difference between the selected deposits of financial institutions is the territorial disposition. If the majority of clients choose the national organization, the remaining small group prefers a credit institution, status and image that is confirmed by years, even centuries of work. To them first of all concern European banks.

“Lord” from the Old world

These organizations are the oldest in the world credit and financial institutions. For a long period of time, one of the “sturdy” and the best banks are considered institutions of Switzerland. At this stage, stable and efficient banks in Europe include in your list of institutions located in other countries. It is noteworthy that in the global sphere of financing, investment and lending have a significant effect it is the institutions of the Old world. The reason for this is the unification of Europe under the auspices of the European Union. The introduction of the single currency has enabled more effectively to consider proposals for infusion of cash flow into projects in different countries. And with varying degrees of success to manipulate the indices of refinancing. In the end, due to the “game” with the international interest rates, many European banks are “under attack” of the Antimonopoly Committee. This Commission is going to apply heavy financial sanctions to many credit institutions.

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German “game”

Because Of manipulation refinancing rates senior "Deutsche Bank" (Germany) is forced to defer to the trial order of 1 billion 200 thousand euros. And that's just for the first hearing. The sad fate of this organization is also shared by the banks JP Morgan Chaise, HSBC and many others. The Antimonopoly Committee of the European Union accuses these institutions of manipulating Libor (the London interbank offered rate). The result of this Grand history became a fine in the amount of two and a half billion euros.

Never recovered from the shock of the German Bank was again involved in the scandal. This time, the Commission revealed violations in the process of establishing the average financing rate of Euribor. Basically, this index shows the interest rate at which European banks lend to each other for a certain period of money. This refinancing instrument is also called an international bid proposals.

At the same time the scandals erupted around this issue adversely affected the overall income of the institution. Compared with the previous in 2013 net profit «Deutsche Bank" reduced 15-fold over the last quarter was just over 50 million euros.

Sad “ally” from Switzerland

A Party to the sad events about “game” with the rate of Libor is also known UBS Bank (Switzerland). Paying a huge fine, the organization “closed” 2012 deep net 1.7 billion euros. 2013 was more successful in the activities of the financial institution. Though the Bank and turned the work in a profitable direction, the planned 15% return, alas, is not received.

Many financiers will undoubtedly agree that the world economy banking “game” institutions of the Old world nothing good end can not suffer loss organizations, investors, countries and continents. Many lending institutions are in danger of ruin.