Banks With Largest Exposure to the UAE

[Parsad]

HSBC leads the way with regards to UAE loan exposure.  Cheers!

 

http://www.cnbc.com/id/34171816

[Guest Broxburnboy]

Must read on state of global banking:

 

http://www.sprott.com/Docs/MarketsataGlance/11_09%20Dont%20Bank%20on%20the%20Banks.pdf

 

Please note the shakiest banks on Sprott's list also appear to be taking the biggest hit in Dubai.

 

[beerbaron]

Don't you guys find that this episodes rimes a lot with Asian/Russian crisis of 98?

 

Asian crisis --> Lower revenues for Russia --> Russia Defaults --> 17% S&P Decrease

 

Occidental crisis ---> Lower revenues for Dubai + Tight credit --> Dubai defaults --> ??% S&P decrease

 

I'm far from an expert about the 98 crisis but I have a few questions about it tough:

 

-What was Russia's total bond value in USD before it's currency started plunging?

-Not a lot of banks can take a second hit today compared with 98, could it be a domino?

-How really united are UAE? Would they bailout their brother?

-Would it mean increased oil production?

 

BeerBaron

[Hoodlum]

Government will not bail them out.

 

http://www.theglobeandmail.com/report-on-business/government-wont-back-dubai-world-debt/article1382348/

 

The Dubai government disclaimed responsibility for the debts of Dubai World on Monday, dealing a blow to creditors' assumptions that the Arab emirate would guarantee the conglomerate's liabilities.

 

“Creditors need to take part of the responsibility for their decision to lend to the companies,” said Abdulrahman al-Saleh, director general of Dubai's department of finance. “They think Dubai World is part of the government, which is not correct.”

 

 

[Guest Broxburnboy]

Don't you guys find that this episodes rimes a lot with Asian/Russian crisis of 98?

 

Asian crisis --> Lower revenues for Russia --> Russia Defaults --> 17% S&P Decrease

 

Occidental crisis ---> Lower revenues for Dubai + Tight credit --> Dubai defaults --> ??% S&P decrease

 

I'm far from an expert about the 98 crisis but I have a few questions about it tough:

 

-What was Russia's total bond value in USD before it's currency started plunging?

-Not a lot of banks can take a second hit today compared with 98, could it be a domino?

-How really united are UAE? Would they bailout their brother?

-Would it mean increased oil production?

 

BeerBaron

 

I think the difference is that now the at risk banks are too big to fail and any losses will be absorbed by the respective government...instead of the S&P500 weakening  we will see the weakening in the sovereign currencies.