Sentences with phrase «zombie banks»

Allowing dead assets to stay on the books as if they are alive is precisely what created insolvent zombie banks in Japan, which continued to operate for over a decade at public expense, even while lending activity stagnated.

Tags: algo trading, Ben Bernanke, BOJ, Fed, FOMC, MBS, portfolio balance channel, QE, shadow banking, William Dudley, zombie banks Posted in BoJ, Fed 4 Comments»

Consider the fact that in the upward whoosh of the Trump Bump our friends at BAC actually outperformed the other large zombie banks and by a wide margin.

The big zombie banks tend to cheat when it comes to risk and thus have too little capital, but not for the reasons that people like Minneapolis Fed President Neel Kashkari believe.

«It doesn't sound like a great idea to save zombie companies with zombie banks,» saidLarry Hu, China economist at Macquarie Securities, a Sydney - based investment bank.

Citi trader Andrew Hall is at the center of a controversy over whether he can get the $ 100 million that's owed to him by the zombie bank.

A banking crisis in China is always possible, and several people I respect are quite certain that there will be one, but I think that as long as Beijing implicitly or explicitly guarantees deposits, and as long as Beijing's credibility with Chinese households is solid, and I believe it is, I think we are more likely to see many years of Japanese - style «zombie banks» than a banking crisis.

Rather than allow for recovery, these zombie banks locked Japan's economy into its so - called deflationary mindset from which it has yet to escape almost three decades later.

Nominal equity returns in high single digits don't get it done when your cost of capital is in the teens, but even more revealing is looking at the zombie banks in terms of risk - adjusted return on capital or RAROC.