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Post by niseag on Sept 22, 2011 5:48:07 GMT 4
Lloyd’s of London, concerned European governments may be unable to support lenders in a worsening debt crisis, has pulled deposits in some peripheral economies as the European Central Bank provided dollars to one euro-area institution.
“There are a lot of banks who, because of the uncertainty around Europe, the market has stopped using to place deposits with,” Luke Savage, finance director of the world’s oldest insurance market, said today in a phone interview. “If you’re worried the government itself might be at risk, then you’re certainly worried the banks could be taken down with them.”
European banks and their regulators are trying to reassure investors and customers that lenders have enough capital to withstand a default by Greece and slowing economic growth caused by governments’ austerity measures. Siemens AG (SIE), European’s biggest engineering company, withdrew short-term deposits from Societe Generale SA, France’s second-largest bank, in July, a person with knowledge of the matter said yesterday.
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.
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Post by ukipa on Sept 22, 2011 19:31:37 GMT 4
If we are smart, we should follow their steps and pull our deposits too. The question is; where do we deposit the funds pulled from these European banks? Would it be wise for us to buy our own European "private bank" and take the risk? What do you think Richard?
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Post by niseag on Sept 22, 2011 23:11:51 GMT 4
sure but it comes at a price, meaning the bank operation you need to mimic for transactions is not cheap, I would buy a small US bank for USD operations, get rid of all clients and run it as a financial management company with a bank license, get a small securities house as well, thats all done easy and cheap, the cost is the people running the FEDWIRE, DTC, ACH etc, then buy a European small bank or create one, thats a bit more envolved. All together with legal assistance you may be able to run it on a 10 people base, which is still a bit much if you are not dealing at least at a 100M basis consistently, but if you pare it with a nice captive you have a good model and you will almost never pay taxes beside payroll.
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Post by ukipa on Sept 23, 2011 20:34:23 GMT 4
Excellent advise Niseag! Thank you.
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Post by cml1234 on Sept 29, 2011 19:19:23 GMT 4
I would buy a small US bank for USD operations, get rid of all clients and run it as a financial management company with a bank license, get a small securities house as well, thats all done easy and cheap, the cost is the people running the FEDWIRE, DTC, ACH etc, then buy a European small bank or create one, thats a bit more envolved. All together with legal assistance you may be able to run it on a 10 people base, which is still a bit much if you are not dealing at least at a 100M basis consistently, but if you pare it with a nice captive you have a good model and you will almost never pay taxes beside payroll. uh..like the one I showed you in York County? Captive license, banking license, and the current manager has a securities license. Limit your transactions to a small consistent group of individuals. The more I think of this.... |
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Post by niseag on Sept 30, 2011 3:36:53 GMT 4
yeah, did not take that one, but I'm looking into another one and am searching for participants in funding the structure
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Post by cml1234 on Oct 1, 2011 16:36:07 GMT 4
yeah, did not take that one, but I'm looking into another one and am searching for participants in funding the structure Don't buy one, it's cheaper to start one where I live. Captive licenses and banking licenses are easy to obtain. As for covering the minimum balance needed to obtain the licenses, I have a few ideas. I wish you were in the US because I would have you donate to a non-profit and the non-profit would be the opening depositor. |
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Post by MMM on Oct 1, 2011 21:43:55 GMT 4
Chad;
starting all new you have a acquire a lot of hardware and personelle and it takes time to get the Fed clearing set up etc, sure old banks have skeletons in the basement or even in the front office but they have all the set up done already
I'm looking into a rural bank in the Philipines and in other countries to get something going in Africa because with an outside license we can operate easier here than with a local one (pretty messed up isn't it?) and a US license would be nice to get in there but frankly the US are overregulated.
M
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Post by cml1234 on Oct 2, 2011 18:10:56 GMT 4
Chad; starting all new you have a acquire a lot of hardware and personelle and it takes time to get the Fed clearing set up etc, sure old banks have skeletons in the basement or even in the front office but they have all the set up done already True, but where I live, there are empty banks still completely wired with the full infrastructure. We had so many credit unions open and then consolidate, that they left completely new buildings available. Finding someone to run it is very easy. My neighbor is the President of a local credit union, I have friends with 25 years of managing bank branches. My state has the easiest rules for opening credit unions and bank charters. The local Somali immigrants here have very little problem with banking between the US and back home. The only problem they run into is they seem to like to send money home to accounts that are flagged by the department of homeland security. |
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Post by ukipa on Oct 2, 2011 23:04:13 GMT 4
yeah, did not take that one, but I'm looking into another one and am searching for participants in funding the structure RL, how much are you talking about? P.I. |
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Post by niseag on Oct 3, 2011 6:44:10 GMT 4
The first steps will be 5M with a potential to step up to 10M for Capital reasons, with a european set up you would need to add another 10M Euro for legal reasons, that money would.
As far as it comes to credit unions, they are a start but doing international business with them is cumbersome and then there is the hesitation of the SWIFT system to accept them. They should be cheaper however.
The upside of an existing operation is that it levels the amount of loss you take in the beginning, the small trickle does keep things alive.
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Post by ukipa on Oct 3, 2011 20:45:22 GMT 4
I will make contact with you through your private email address. I believe this is indeed doable. Thank you. P.I. The first steps will be 5M with a potential to step up to 10M for Capital reasons, with a european set up you would need to add another 10M Euro for legal reasons, that money would. As far as it comes to credit unions, they are a start but doing international business with them is cumbersome and then there is the hesitation of the SWIFT system to accept them. They should be cheaper however. The upside of an existing operation is that it levels the amount of loss you take in the beginning, the small trickle does keep things alive. |
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Post by cml1234 on Oct 4, 2011 20:31:37 GMT 4
with a european set up you would need to add another 10M Euro for legal reasons, that money would. I'm kicking myself because someone mentioned a bank for sale in Germany. Single branch, elderly owner with no kids. I cannot remember who told me about this... |
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Post by MMM on Oct 5, 2011 4:15:53 GMT 4
Thats probably Schroeder Bank in Hamburg, www.schroederbank.de/, they have been in the market for a while, Richard tried to buy them twice, the old man never wanted to leave, their capital is below 5M Euro, needs to be increased. Wonder if the guy changed his mind. |
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Post by ukipa on Oct 6, 2011 4:01:07 GMT 4
The German bank (Schroenderbank) should be a nice grab at the right price.
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Post by Sapphire Capital on Oct 6, 2011 7:44:22 GMT 4
They will only talk to a bank which will them allow their own game in Hamburg. Its a very conservative environment and old money, the family ownership had secured their position and the management is running it for them now a days for the family. The old man was stubborn as only a Hamburg money bag can be and loved to go to the stock exchange. He died 1 year ago at the age of 81. They would probably listen to a conservative approach but it needs careful work.
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