Lloyds of London adandons all European Banks (Big Wow!)

[Large Sarge]

Lloyds of London ABANDONS
European banks!
Banks could be taken down,
Says Lloyds finance director.






Without warning, Lloyds the worlds oldest insurance market announced that it has withdrawn its money from European banks.

The reason? According to Lloyds, the banks are in danger of failing as Europes debt crisis continues to intensify.
The companys Finance Director, Luke Savage, put it simply:
If your're worried the government itself might be at risk, then your're certainly worried the banks could be taken down with them.

Which European governments is Lloyds talking about? Theyre not saying.
But it IS interesting to note that Lloyds didn't just withdraw its money from Greek banks; it withdrew its money from banks all over Europe!




One thing you can be sure of, though: When the worlds oldest insurance company ...

A firm that for 323 years has made its living by accurately calculating the odds of future disasters ...
When that company suddenly takes its money and runs, its a MASSIVE red flag for investors a clear sign that the beginning of the end is near!


Lloyds has every reason to worry. In addition to the government debt crisis that's threatening to destroy European banks, a huge credit crisis is spreading across the Continent as well.
Spanish and Italian banks are rejecting massive numbers of loans and charging customers more as the sovereign debt crisis continues to drive their own borrowing cost higher.
Any way you look at it, this shrinking of European credit markets is the worst kind of downward spiral:
*The government debt crisis is making it harder and more expensive for banks to borrow money;
The banks are passing those higher costs along to borrowers.
*Corporations have to pay more to borrow; their cost of doing business is rising.
*Consumers cant or wont borrow at higher rates, so corporate earnings plunge.
*As corporate earnings evaporate, the taxes they pay also plummet.
Falling tax revenues cause the governments deficits to explode higher, driving the banks cost of borrowing even higher.
And so, the death spiral continues ...

.......................

Best wishes,
Weiss Research, Inc.

[Neuro]

The straw that broke the camels back!

[palani]

All for one and one for itself.

[Golden]

The straw that broke the camels back!

Talk about screwin the pooch!

http://www.telegraph.co.uk/finance/personalfinance/insurance/pet/8805322/Lloyds-and-Halifax-to-pull-pet-insurance-cover.html

[JohnQPublic]

This spells the end. Even the Fed may not extend credit at this point!

[JJ.G0ldD0t]

Euro bank run to ensue..

[Twisted Titan]

You know who should be shaking in his boots?

Mike Maloney

His storage company that holds precious metals for cilents is underwritten by LoL

[chad]

lloyds will be fine. part of the beauty of whoever designed lloyds is that it's an issuance company, not an insurance company. it's like the pimp of the all of the insurance company streetwalking hoes.

another interesting thing to note, when lloyds restructured in the 1990s, it sold tons of stock holding and even the lloyds building in central london to pay for it...but they refused to sell any silver.

[Twisted Titan]

I don't understand what issuance is

[chad]

here's how they work:

let's say you're a big insurance company and you want access to top tier, specialized markets. you pay to "join" lloyds. after awhile, lloyds has a whole group of all of these different insurance companies.

in turn, lloyds has fleets of analysts who analyze risk, etc for their "members." somebody who needs weird insurance (like the world trade center, david lee roth's penis, mike maloney's silver, etc.) shows up. lloyds analyzes them, then matches them up with one of their "members" who specializes in such things and writes the policy. lloyds doesn't actually insure anything, they just like a matchmaker. and they get a cut.

that's a very simplisitc view of how they work, but you get the idea. i used to work with a guy who owned an insurance company, and sometimes the only place he could send people was lloyds. weird shit like "i need to insure my arm for 5 million dollars because i'm a champion arm wrestler." stuff like that.

[Neuro]

I don't understand what issuance is

It's like being a pimp!

[Neuro]

here's how they work:

let's say you're a big insurance company and you want access to top tier, specialized markets. you pay to "join" lloyds. after awhile, lloyds has a whole group of all of these different insurance companies.

in turn, lloyds has fleets of analysts who analyze risk, etc for their "members." somebody who needs weird insurance (like the world trade center, david lee roth's penis, mike maloney's silver, etc.) shows up. lloyds analyzes them, then matches them up with one of their "members" who specializes in such things and writes the policy. lloyds doesn't actually insure
anything, they just like a matchmaker. and they get a cut.

that's a very simplisitc view of how they work, but you get the idea. i used to work with a guy who owned an insurance company, and sometimes the only place he could send people was lloyds. weird shit like "i need to insure my arm for 5 million dollars because i'm a champion arm wrestler." stuff like that.
I know of chiropractors who have insured their hands...

[chad]

the weirdest thing i ever saw insured was a trauma helicopter pilot who insured his eyes for some insane amount. i remember it went back and forth about 5 times because he had to have all of these weird eye tests done before they would do it.

my friend used to call lloyds "charon," because if you ended up having to approach & pay them to do something, you were basically one step from hell.

[Plastic]

This just screams DOOM! and fills me with the urge to buy more rice/beans/toilet paper and mason jars for a long dry canning session. Thursday, this old fart is going shopping, again, for more must haves.

Did the OP give anyone else the willies?

[learn2swim]

here's how they work:

let's say you're a big insurance company and you want access to top tier, specialized markets. you pay to "join" lloyds. after awhile, lloyds has a whole group of all of these different insurance companies.

in turn, lloyds has fleets of analysts who analyze risk, etc for their "members." somebody who needs weird insurance (like the world trade center, david lee roth's penis, mike maloney's silver, etc.) shows up. lloyds analyzes them, then matches them up with one of their "members" who specializes in such things and writes the policy. lloyds doesn't actually insure anything, they just like a matchmaker. and they get a cut.

that's a very simplisitc view of how they work, but you get the idea. i used to work with a guy who owned an insurance company, and sometimes the only place he could send people was lloyds. weird shit like "i need to insure my arm for 5 million dollars because i'm a champion arm wrestler." stuff like that.

Sounds like an advanced insurance broker, that's it.

[learn2swim]

This just screams DOOM! and fills me with the urge to buy more rice/beans/toilet paper and mason jars for a long dry canning session. Thursday, this old fart is going shopping, again, for more must haves.

Did the OP give anyone else the willies?
You 1-2 weeks, if the Euro goes down.

[Plastic]

You 1-2 weeks, if the Euro goes down.

Damn, I was thinking we would have 2-6 weeks after it goes.

[k-os]

This just screams DOOM! and fills me with the urge to buy more rice/beans/toilet paper and mason jars for a long dry canning session. Thursday, this old fart is going shopping, again, for more must haves.

Did the OP give anyone else the willies?

It gave me the willes, but I think I am an easy mark for doomishness.

[DMac]

This just screams DOOM! and fills me with the urge to buy more rice/beans/toilet paper and mason jars for a long dry canning session. Thursday, this old fart is going shopping, again, for more must haves.

Did the OP give anyone else the willies?

Lots of things these days are giving me the willies.

I bought 20lbs more rice this weekend. It helped me shake a few of those willies.

[osoab]

This happened on the 21st of September.

I couldn't find anywhere in the Bloomberg (same article ZeroHedge quotes) article that they pulled all of their money out of Euro banks, just the outer rim Euro countries.

I don't think it is mega doom yet.



Bloomberg
Lloyd’s of London Pulls Deposits From Banks on Debt Crisis (http://www.bloomberg.com/news/2011-09-21/lloyd-s-of-london-posts-697-million-pound-loss-on-disasters-1-.html)



Lloyd’s, which holds about a third of its 2.5 billion pounds ($3.9 billion) of central assets in cash, has stopped depositing money with some banks in Europe’s peripheral economies, Savage said, declining to name the countries or institutions.
Lloyd’s, founded in a London (http://topics.bloomberg.com/london/) coffee house in 1688, swung to a 697 million-pound pretax loss in the six months to June 30 after the most expensive first half for natural disasters on record. The market made a profit of 628 million pounds in the same period a year earlier, the London-based market said in a statement today.

“These are tough times for the insurance industry (http://topics.bloomberg.com/insurance-industry/), but we are well positioned to handle them,” Chief Executive Officer Richard Ward said in the statement. “While interest rates are low and equity markets are volatile, we can’t rely on investment income to subsidize our underwriting. We must decline under- priced risks.”

The insurance markets made 548 million pounds on its investments in the period, 8.2 percent lower than in the first half of 2010 as interest rates in the U.K., U.S. and the euro zone (http://topics.bloomberg.com/euro-zone/) neared record lows.

“I cannot see any reasonable prospect of making decent investment income in the medium term,” Savage said.

Lloyd’s had a combined ratio of 113.3 percent in the first half, meaning for every pound it took in premiums, it paid out 1.13 pounds in claims. That worsened from 98.7 percent in the first half of 2010.

The loss was “much better than our peer group exposed to the same catastrophes,” Savage said. Bermuda insurers’ combined ratio was 117 percent for the period and U.S. reinsurers posted a ratio of 116 percent, Lloyd’s said.

from Zerohedge
Euro Bank Run Shifts To Insurance Companies As Lloyd's Of London Pulls Cash From European Banks (http://www.zerohedge.com/news/euro-bank-run-shifts-insurance-companies-lloyds-london-pulls-cash-european-banks)




This happened 1-2 days prior to Lloyds announcement.

from Zerohedge
The Corporate Bank Run Has Started: Siemens Pulls €500 Million From A French Bank, Redeposits Direct With ECB (http://www.zerohedge.com/news/shocker-siemens-pulls-%E2%82%AC500-million-french-bank-redeposits-direct-ecb)