European banks: the fallen status and loss of profit

Each person aspires to a cosiness and fullsecurity. At the same time, the safety of property and money takes a priority position. Most people trust the storage of their savings to banks. The main difference between the selected financial institutions for deposits is territorial location. If the majority of clients choose national organizations, the remaining small group prefers credit institutions, whose status and image is confirmed by years, even centuries of work. The banks of Europe primarily concern them.

"Gentlemen" of the Old World

These organizations are the oldest in the wholeworld space by credit and financial institutions. For a long time, Switzerland was one of the most "strong" and best banks. At this stage, stable and efficient banks in Europe include in their list of institutions located in other countries. It is noteworthy that the institutions of the Old World have a significant influence on the development of the world sphere of financing, investment and lending. The reason for this is the unification of European countries under the auspices of the European Union. The introduction of a single currency made it possible to more effectively consider proposals for the inflow of cash flows into projects of different countries. And with varying success, manipulate refinancing indices. Ultimately, because of the "game" with international lending rates, many European banks are "under attack" by the antimonopoly committee. This commission is going to apply large financial sanctions to many credit institutions.

German "games"

Because of manipulation with refinancing ratesa senior "Deutsche Bank" (Germany) is forced to postpone for trial proceedings about 1 billion 200 thousand euros. And this is only for the first hearing. The sad fate of this organization was also shared by banks JP Morgan Chaise, HSBC and many others. The EU Antimonopoly Committee accuses these institutions of manipulating the Libor rate (London Interbank Offering Rate). The result of this grandiose story was a fine of two and a half billion euros.

Not recovering from the shock, the Germanthe bank was again involved in the second scandal. This time, the commission found violations in the process of establishing an average funding rate for Euribor. Simply put, this index shows the percentage that European banks lend to each other for a certain period of money. This refinancing instrument is also called the international supply rate.

At the same time, the scandals surrounding thisThe issue had a detrimental effect on the general income of the institution. Compared to the previous year in 2013, Deutsche Bank's net profit declined 15 times and for the penultimate quarter was only slightly more than 50 million euros.

A sad "ally" from Switzerland

A participant in the sad event about the "game" withThe Libor rate is also known by UBS-Bank (Switzerland). Having paid a huge fine, the organization "closed" 2012 with a deep minus of 1.7 billion euros. The year of 2013 was more successful in the activity of the financial institution. Although the bank turned its work into a profitable channel, the planned 15% profitability, alas, was not received.

Many financiers, no doubt, will agree that forof the entire global economy, the banking "games" of the institutions of the Old World can not end well with anything: losses are suffered by organizations, investors, countries and continents. Many credit institutions are in danger of ruin.