{"id":4678,"date":"2015-01-20T08:00:11","date_gmt":"2015-01-20T13:00:11","guid":{"rendered":"http:\/\/olduvai.ca\/?p=4678"},"modified":"2015-01-20T08:00:11","modified_gmt":"2015-01-20T13:00:11","slug":"swiss-shocker-triggers-gigantic-losses-for-banks-hedge-funds-and-currency-traders","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=4678","title":{"rendered":"Swiss Shocker Triggers Gigantic Losses For Banks, Hedge Funds And Currency Traders"},"content":{"rendered":"

Swiss Shocker Triggers Gigantic Losses For Banks, Hedge Funds And Currency Traders<\/a><\/h3>\n

The absolutely stunning decision by the Swiss National Bank\u00a0to decouple from the euro<\/a>\u00a0has triggered billions of dollars worth of losses all over the globe.\u00a0 Citigroup and Deutsche Bank both say that their losses were somewhere in the neighborhood of 150 million dollars, a major hedge fund that had 830 million dollars in assets at the end of December has been forced to shut down, and several major global currency trading firms have announced that they are now insolvent.\u00a0\u00a0 And these are just the losses that we know about so far.\u00a0 It will be many months before the full scope of the financial devastation caused by the Swiss National Bank is fully revealed.\u00a0 But of course the same thing could be said about the crash in the price of oil that we have witnessed in recent weeks.\u00a0 These two \u201cblack swan events\u201d have set financial dominoes in motion all over the globe.\u00a0 At this point we can only guess how bad the financial devastation will ultimately be.<\/p>\n

But everyone agrees that it will be bad.\u00a0 For example, one financial expert at Boston University says that he believes the losses caused by the Swiss National Bank decision will be\u00a0in the billions of dollars<\/a>\u2026<\/p>\n

\u201cThe losses will be in the billions \u2014 they are still being tallied<\/strong>,\u201d said Mark T. Williams, an executive-in-residence at Boston University specializing in risk management. \u201cThey will range from large banks, brokers, hedge funds, mutual funds to currency speculators. There will be ripple effects throughout the financial system<\/strong>.\u201d<\/p>\n

Citigroup, the world\u2019s biggest currencies dealer, lost more than $150 million at its trading desks, a person with knowledge of the matter said last week. Deutsche Bank lost $150 million and Barclays less than $100 million, people familiar with the events said, after the Swiss National Bank scrapped a three-year-old policy of capping its currency against the euro and the franc soared as much as 41 percent that day versus the euro. Spokesmen for the three banks declined to comment.<\/p><\/blockquote>\n

And actually, if the total losses from this crisis are only limited to the \u201cbillions\u201d I think that we will be extremely fortunate.<\/p>\n

 <\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Swiss Shocker Triggers Gigantic Losses For Banks, Hedge Funds And Currency Traders The absolutely stunning decision by the Swiss National Bank\u00a0to decouple from the euro\u00a0has triggered billions of dollars worth of losses all over the globe.\u00a0 Citigroup and Deutsche Bank both say that their losses were somewhere in the neighborhood of 150 million dollars, a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2766,2764,280,2765,2763,1555],"class_list":["post-4678","post","type-post","status-publish","format-standard","hentry","category-economics","tag-currency-peg","tag-currency-traders","tag-euro","tag-fx-traders","tag-swiss-central-bank","tag-swiss-national-bank"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4678","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4678"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4678\/revisions"}],"predecessor-version":[{"id":4679,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4678\/revisions\/4679"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4678"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}