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Showing posts with label belgium. Show all posts
Showing posts with label belgium. Show all posts

Thursday, February 23, 2012

Europe's banks bleed from Greek debt crisis

Europe's banks bleed from Greek debt crisis
(Reuters) - Greece's debt problems drove a slew of heavy losses across the European banking sector on Thursday, and bosses warned the euro zone crisis would continue to threaten earnings.

From France to Germany, Britain to Belgium, some of the region's biggest banks lined up to reveal billions of euros lost through writedowns on Greek loans.

"We are in the worst economic crisis since 1929," Credit Agricole (CAGR.PA) chief executive Jean-Paul Chifflet said.

Credit Agricole reported a record quarterly net loss of 3.07 billion euros ($4.06 billion), performing worse than expected from the cost of shrinking its balance sheet and after a 220 million euro charge on its Greek debt.

"We think 2012 is going to still be a tense period," Chifflet said, adding: "We're hoping that our results will be largely better than in 2011.

Europe's banks have already written down billions of euros from losses on Greek government bonds and loans, and a deal agreed this week with its creditors will inflict losses of 74 percent on bondholders.

"We can't say that the writedowns are over," said Franklin Pichard, director at Barclays France. "Even if some can say that the worst is over, we are only at a new stage in terms of provisioning and not necessarily at the end."

That is because, despite the bond swap deal, bondholders could suffer further hits if Greece's economy fails to recover.

Britain's Royal Bank of Scotland (RBS.L) has marked its Greek bonds at a 79 percent loss -- or 1.1 billion pounds -- for 2011. The state-owned bank posted a fourth quarter loss of nearly 2 billion pounds on Thursday.

FAR WIDER THAN GREECE

Problems in Europe's banking sector are far wider than Greece, however.

"We have reduced the balance sheet of RBS by over 700 billion pounds of assets. That is roughly twice the size of the entire national debt of Greece," said RBS boss Stephen Hester.

The region's banks are still repairing the damage of the financial crisis and shrinking their assets. They must also find 115 billion euros by the middle of this year to shore up their balance sheets against future shocks. But any weakening in the economy will hit earnings and make that harder to achieve.

Germany's Commerzbank (CBKG.DE), whose fourth-quarter earnings were spoiled by a 700 million euro hit on Greek sovereign debt, needs to find 5.3 billion euros to meet the stringent new capital requirements set by Europe's banking regulator. It has now lost more than 2 billion euros on its Greek bonds.

Commerzbank said it could reduce some of its shortfall by shedding risky assets, though the debt crisis still had the potential to disrupt earnings.

"The high degree of uncertainty associated with the European sovereign debt crisis will ... continue to pose challenges for us," Chief Executive Martin Blessing said.

STILL ROOM FOR A BONUS

European governments are hoping to avoid more state bailouts to prop up the banking sector, and to limit the fallout should any bank collapse.

Bailed out Franco-Belgian bank Dexia (DEXI.BR) warned on Thursday it risked going out of business. It suffered a 2011 net loss of 11.6 billion euros, hit by its break-up and exposure to Greek debt and other toxic assets such as U.S. mortgage-backed securities.

Dexia, which accepted a state-led break-up and the nationalization of its Belgian banking arm in October and is now little more than a holding of bonds in run off, booked a 3.4 billion euro loss on its holding of Greek sovereign bonds.

French investment bank Natixis (CNAT.PA), rescued from near-collapse during the 2008 financial crisis by a government-backed merger of its retail cooperative parents, reported a milder-than-expected 32 percent decline in quarterly profits.

Despite the weak results, banks still found room for bonuses.

RBS, 82 percent owned by the British government, paid out almost 1 billion pounds in bonuses to staff in 2011. Credit Agricole said it would cut trader bonuses by 20 percent.

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Wednesday, December 14, 2011

French mother, 32, set to become first woman to be jailed for wearing banned Islamic veil

woman
Hind Ahmas, left, could be sentenced to two years in prison in France
A 32-year-old mother from France is set to become the first woman ever to be sent to prison for wearing an Islamic veil.

Hind Ahmas refuses to accept the legitimacy of a Paris court which has ordered her to spend 15 days learning her civic duties.

She was sentenced by magistrates in Meaux, a Paris suburb, yesterday - after being arrested wearing an outlawed veil outside the Elysee Palace in the French capital on April 11.

That was shortly after Nicolas Sarkozy's government introduced a ban on all forms of Islamic head coverings, including the niqab and the burka.

Ahmas was not allowed into the hearing at Meaux Criminal Court because she refused to remove her face covering.

But prosecutors made it clear to her lawyer, Gilles Devers, that Ahmas now faces two years in prison and a £27,000 fine.

'There is no possibility of me removing the veil,' Ahmas said.

'I'm not taking it off. The judge needs citizenship lessons, not me.'

Ahmas, who has already refused to pay a fine of around £100 for wearing a veil on another occasion, intends to take her case to the European Court of Human Rights.

She has launched a pressure group, Do Not Touch My Constitution, along with Kenza Drider, another veil wearer who wants to run for president in the Spring.

If Ahmas does become the first woman in the world to go to prison for wearing a veil, then it will be seen as a huge propaganda coup for Islamic-rights campaigners.

Mr Sarkozy said the ban on head coverings was not aimed at persecuting Muslims, but merely to make France a more tolerant, inclusive society.

When it was introduced, he said the ban was aimed at stopping criminals – from terrorists to shoplifters – disguising their faces from security staff and CCTV.

But the sight of a young mother being led away to the cells merely because she refuses to take off her veil will cause outrage around the world.

Mr Devers said the veil ban was 'unconstitutional', while senior police officers have told judges that it is unenforceable without persecuting women.

France became the first country in Europe to outlaw the veil, while similar legislation has since been passed in Belgium and Holland.

One has been mooted in Britain by a number of politicians, including Conservative backbenchers, but there are no immediate plans to introduce one.

News by Dailymail



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Tuesday, December 13, 2011

Grenade attack in Belgium kills 4 and injures 75 at Liege Christmas market

grenade attack in Belgium
Grenade attack in Liege
A man armed with grenades and an assault rifle attacked shoppers in the Belgian city Liege today, leaving four people dead and wounding 75 others.

The attack ignited a stampede, as hundreds fled the explosions and bullets in the busy Place Saint-Lambert.

Interior Ministry official Peter Mertens said the attack did not involve terrorism.

The attacker was identified as Norodine Amrani, 33, a Liege resident who had served jail sentences for offences involving guns, drugs and sex abuse.

He was among the dead, but it was unclear if he committed suicide or died by accident. He was not killed by police.

The dead included two teenage boys, aged 15 and 17, and a 75-year-old woman. A two-year-old girl was reported to be fighting for her life.

Amrani had been summoned for police questioning today but the reason for the questioning was not clear. He still had a number of grenades with him when he died.

He left his home in Liege with a backpack, armed with hand grenades, a revolver and an assault rifle.

He walked alone to the central square, then got on to a platform that gave him a view of the square below, with a huge Christmas tree and crowded with shoppers.

From there, Amrani lobbed three hand grenades towards a bus shelter, which serves 1,800 buses a day, then opened fire on the crowd. The explosions sent glass from the bus shelter across a wide area.

Witness Dimitri Degryse said: "I heard a loud boom. I thought it was something on my car that was broken or something. Then a few seconds after, a second boom, and I saw all the glass breaking, I saw people running, screaming."

As soon as the shooting began, hundreds of people fled the square, as well as a Christmas market in an adjacent square, rampaging through old city streets looking for cover.

Video from the scene showed people, including a large group of children, fleeing the city centre, some still carrying shopping bags.

As police hunted for possible accomplices, residents were ordered to stay in their homes or seek shelter in shops or public buildings.

A medical post was set up in the nearby courtyard of the Prince Bishops courthouse. Dozens of emergency vehicles took victims away for treatment.

Police closed off the area but found no accomplices and calm returned after a few hours.

The Place Saint-Lambert and the nearby Place du Marche host Liege's annual Christmas market, which consists of 200 tiny shops and attracts some 1.5 million visitors a year.

By dusk, with the Christmas lights gleaming again, King Albert II and Queen Paola came to pay their respects, as did prime minister Elio Di Rupo.

Place Saint-Lambert is a busy crossroads. Every day 1,800 buses serve the square, which leads to central shopping streets.

The Place Saint-Lambert and the nearby Place du Marche host the Liege's annual Christmas market which consists of 200 retail cabins and attracts some 1.5 million visitors a year.

News by Mirror