MISSEDLINK

Banks fined € 1.7bn - the Guardian: LINK ¤ the GUARDIAN

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• "the European Commission - slaps a record € 1.7bn - fine - on six firms !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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• "the banks involved are - JP Morgan - Citigroup - Deutsche Bank !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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• "UBS - and RBS !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! - ( key interest rate benchmarks - Euribor - Libor ! )"

 

 

 

 

 

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• "Joaquín Almunia - the European Commissioner - says "this will not be"  !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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• "the end of this story - for the manipulation - of benchmarks !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

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• "the EU Commission - is determined to fight - and sanction - this behaviour !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

 

JP Morgan Chase record Settlement - the Guardian: LINK ¤ the GUARDIAN

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• "JP Morgan Chase - agreed a record - US$ 13bn - settlement !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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• "with regulators - the biggest civil settlement - with any single company !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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• "JP Morgan acknowledged - it made serious misrepresentations - to the public !"

 

 

 

 

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• "about numerous transactions - relating to - residential mortgage-backed securities !"

 

 

 

 

 

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• "JP Morgan - also paid US$ 4.5bn - to settle allegations !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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• "it had mis-sold - mortgage bonds - to pension funds - and institutional investors !"

 

 

 

 

 

 

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Derivatives - the Guardian: LINK ¤ the GUARDIAN

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• "JP Morgan - had agreed to pay - US$ 920m - in penalties !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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• "to regulators - over the practices - that led to its - US$ 6.2bn London losses !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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• "regulators - their found unsafe - and unsound practices - related !"

 

 

 

 

• "to derivatives - trading activities - inadequate oversight - and governance !"

 

 

 

 

 

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• "inadequate risk management - inadequate control - over pricing of trades !"

 

 

 

 

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• "and inadequate development - and implementation - of models used by the bank !"

 

 

 

 

 

 

 

 

 

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Goldman Sachs Trader - the Guardian: LINK ¤ the GUARDIAN

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• "in an email - the Goldman Sachs trader - Fabrice Tourre - wrote that his !"

 

 

 

 

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• "building - was about to collapse - but that he - "Fabulous Fab" - would survive !"

 

 

 

 

 

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• "the regulator contended - that Tourre misled investors - in a !"

 

 

 

 

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• "Goldman Sachs fund - called Abacus - that invested in complex !"

 

 

 

 

 

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• "mortgage-backed assets - known as collateralized - debt obligations - CDOs !"

 

 

 

 

 

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• "they failed to disclose - that Paulson & Co - the hedge fund - John Paulson !"

 

 

 

 

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• "was involved - in picking mortgage securities - tied to the investment !"

 

 

 

 

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• "and was also - betting - against it ! - ( investors lost - US$ 1bn !)"

 

 

 

 

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Banks agreed US$ 18.5bn Settlements - the Guardian: LINK ¤ the GUARDIAN

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• "Bank of America - agreed to pay - US$ 10bn - to Fannie Mae !"

 

 

 

 

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• "to settle claims - that Bank of America - sold Fannie Mae !"

 

 

 

 

 

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• "bad loans - for 10 years - in another - unrelated settlement - 10 banks !"

 

 

 

 

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• "and financial institutions - including Bank of America - JP Morgan Chase !”

 

 

 

 

 

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• "and Wells Fargo - agreed to settle claims - of foreclosure - for US$ 8.5bn !”

 

 

 

 

 

 

 

 

 

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UBS charged over Libor - the Guardian: LINK ¤ the GUARDIAN

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• "UBS - was fined US$ - 1.4bn - by global regulators - for manipulating !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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• "the key rate - at least 45 individuals - including traders - managers !"

 

 

 

 

 

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• "and senior managers - were involved in - or aware of - the practice !"

 

 

 

 

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• "of attempting - to influence submissions - a UBS trader agreed !"

 

 

 

 

 

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• "with a counterpart - that he would attempt - to manipulate !"

 

 

 

 

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• "UBS's submissions - in "small drops" - in order to avoid - suspicion !"

 

 

 

 

 

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• "he offered to "return the favour" - and entered into - illicit transactions ! - ( reward his counterparts ! )"

 

 

 

 

 

 

 

 

 

UBS Trader - the Guardian: LINK ¤ the GUARDIAN

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• "a "rogue" - UBS employee - helped lose - US$ 2.3bn !"

 

 

 

 

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• "by trading - huge sums - in off-the-book - deals !"

 

 

 

 

 

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• "Adoboli - said the bank's bosses - had placed him - under enormous pressure !"

 

 

 

 

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• "to increase profits - and spoke of a prevailing - culture !"

 

 

 

 

 

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• "in which even - relatively junior traders - such as himself !"

 

 

 

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• "were given - minimal oversight - and tacitly urged ! - ( whatever means ! )"

 

 

 

 

 

 

 

 

 

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GOLDMAN SACHS - Wikipedia EN: LINK ¤ GOLDMAN SACHS

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• "Goldman Sachs Group - Inc. - investment bank !"

 

 

 

 

• "Goldman Sachs - was betting on a collapse - in the sub-prime market !"

 

 

 

 

 

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• "by short-selling - subprime mortgage-backed securities ! - ( US$ 4 billion ! )"

 

 

• "the Fed - had loaned - US$ 589 billion !"

 

 

 

 

 

 

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Goldman Sachs - Source Watch: LINK ¤ SOURCE WATCH

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• "investment banks - had lobbied in 2000 - for deregulation !"

 

 

 

 

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• "the Securities and Exchange Commission - had removed the 12 - to 1 debt !"

 

 

 

 

 

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• "to net - capital ratio - they could use their - own risk models !"

 

 

 

 

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• "to determine their - capital requirements - leverage !"

 

 

 

 

 

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• "in some cases - had an extremely risky level - ratio of - 40 to 1 !"

 

 

 

 

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• "and these investment banks - were fatally undercapitalized !"

 

 

 

 

 

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the Culture of Goldman Sachs - the Guardian: LINK ¤ the GUARDIAN

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• "Goldman Sachs director - quits morally bankrupt - bank !"

 

 

 

 

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• "Goldman Sachs - suffered another severe blow - to its reputation !"

 

 

 

 

 

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• "one of its bankers - the executive director - Greg Smith - announced !"

 

 

 

 

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• "his resignation - by declaring his - employer - Goldman Sachs !"

 

 

 

 

 

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• ""morally bankrupt" - Greg Smith said - over the past 12 months !"

 

 

 

 

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• "he had seen five different - managing directors - refer to their own !"

 

 

 

 

 

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• "clients - as "muppets" - sometimes over internal email !"

 

 

 

 

 

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• "the fast track - to a promotion - involved persuading clients - to invest !"

 

 

 

 

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• "in stocks - or other products - that they were trying - to get rid of !"

 

 

 

 

 

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• "the clients - must not be - ripped off !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

 

JP MORGAN CHASE - Wikipedia EN: LINK ¤ JP MORGAN CHASE

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• "JPMorgan Chase & Co. - investment bank !"

 

 

 

 

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• "the derivatives team - at JPMorgan - had been the pioneer - in the !"

 

 

 

 

 

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• "invention of - credit derivatives - such as the - credit default swap !"

 

 

 

 

 

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BANK of AMERICA - Wikipedia EN: LINK ¤ BANK of AMERICA

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• "Bank of America Corporation - BofA - bank !"

 

 

 

 

• "US$ 20 billion - in the federal bailout - through TARP !"

 

 

 

 

 

• "and a guarantee of - US$ 118 billion - in potential losses !"

 

 

 

 

 

 

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CITIGROUP - Wikipedia EN: LINK ¤ CITIGROUP

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• "Citigroup Inc. - Citi - bank !"

 

 

 

 

• "2009 - Citigroup announced - that the government - would take a !"

 

 

 

 

 

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• "36% - equity stake - in the company - by converting - US$ 25 billion !"

 

 

 

 

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• "in emergency aid - into common stock - with a credit line of - US$ 45 billion ! - ( to prevent the bankruptcy ! )"

 

 

 

 

 

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WELLS FARGO - Wikipedia EN: LINK ¤ WELLS FARGO

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• "Wells Fargo & Company - bank !"

 

 

 

 

 

 

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HSBC - Wikipedia EN: LINK ¤ HSBC

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• "HSBC Holdings plc - bank !"

 

 

 

 

 

 

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UBS - Wikipedia EN: LINK ¤ UBS

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• "UBS Group AG - investment bank !"

 

 

 

 

 

 

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DEUTSCHE BANK - Wikipedia EN: LINK ¤ DEUTSCHE BANK

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• "Deutsche Bank AG - bank !"

 

 

 

 

• "the Senate Wall Street Report - wrote "Deutsche Bank - was a"  !"

 

 

 

 

 

• ""case study" - of investment banking - involvement in the mortgage !"

 

 

 

 

 

• "it concluded - that even as the market - was collapsing - and its !"

 

 

 

 

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• "top global - CDO trader - was deriding the CDO market !"

 

 

 

 

 

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• "and betting against - some of the mortgage bonds !"

 

 

 

 

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• "Deutsche Bank - continued to churn out - bad CDO products - to investors !"

 

 

 

 

 

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• "risky assets - of the CDO - which its own traders - thought was a bad bond !"

 

 

 

 

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• "by 2009 - the entire CDO - was almost worthless !"

 

 

 

 

 

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• "and the investors - had lost most of their money !"

 

 

 

 

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• "Gregg Lippman - head of CDO trading of - Deutsche Bank - was betting !"

 

 

 

 

 

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• "against the - CDO market - and called it a - "ponzi scheme"  !"

 

 

 

 

 

Investment Banking - Wikipedia EN: LINK ¤ INVESTMENT BANKING

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• "the financial credit crisis - led to the notable collapse - of several banks !"

 

 

 

 

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• "this crisis - led to questioning - of the business model - of the !"

 

 

 

 

 

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• "investment bank - without the regulation - imposed on it by - Glass-Steagall !"

 

 

 

 

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• "which separated - commercial banks - and investment banks !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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• "there must not be - lower standards - and short-term !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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• "the TARP Oversight Report - said there must not be - too risky behavior !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

Lehman Brothers - Wikipedia EN: LINK ¤ LEHMAN BROTHERS

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• "Lehman Brothers Holdings Inc. - was a financial services firm !"

 

 

 

 

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• "before declaring bankruptcy - in 2008 - Lehman faced !"

 

 

 

 

 

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• "an unprecedented loss - to the subprime mortgage crisis !"

 

 

 

 

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• "it's loss - was a result - of having held on - to large positions !"

 

 

 

 

 

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• "Lehman executives - regularly used cosmetic - accounting gimmicks !"

 

 

 

 

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• "at the end - of each quarter - to make its finances - appear less shaky !"

 

 

 

 

 

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• "than they really were - Lehman Brothers announced - it would file !"

 

 

 

 

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• "for Chapter 11 - bankruptcy protection !"

 

 

 

 

 

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• "cited - bank debt of - US$ 613 billion !"

 

 

 

 

 

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the US Subprime Mortgage Crisis - Wikipedia EN: LINK ¤ SUBPRIME MORTAGE CRISIS

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• "the US subprime mortgage crisis - was a nationwide - financial crisis !"

 

 

 

 

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• "a series of factors - caused the financial system - to become increasingly fragile !"

 

 

 

 

 

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• "investment banks - and hedge funds - were not subject !"

 

 

 

 

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• "to the same regulations - as depository banking !"

 

 

 

 

 

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• "complex - off-balance sheet - derivatives - and securitizations !"

 

 

 

 

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• "derivatives - such as CDS - were unregulated - or barely regulated !"

 

 

 

 

 

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• "by the end of 2007 - the largest five investment banks !"

 

 

 

 

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• "had - US$ 4 trillion - in debt !"

 

 

 

 

 

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• "with high ratios - of debt - to equity !"

 

 

 

 

 

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• "meaning only a small decline - in the value - of their assets !"

 

 

 

 

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• "would render them - insolvent !"

 

 

 

 

 

GRAMEEN BANK - Microfinance: LINK ¤ GRAMEEN BANK

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• "the Grameen Bank - by Muhammad Yunus - provides affordable !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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• "micro-loans - to financially empower - low-income entrepreneurs !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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• "Grameen Bank - GB - provides credit - to the poorest !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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• "it serves as a catalyst - in the over all - sustainable development !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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• "of socio-economic conditions - of the poor - it is a banking system !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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• "based on - mutual trust - accountability - participation - and creativity !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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• "microcredit programmes - extend small loans !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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• "to poor people - for self-employment - projects !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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• "that generate income - allowing them - to care for themselves !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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• "and their families - so that lasting peace - can be achieved !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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Grameen Bank - Wikipedia EN: LINK ¤ GRAMEEN BANK

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• "the Grameen Bank - is a Nobel Peace Prize-winning !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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• "microfinance organization - and community development bank !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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• "founded by - Muhammad Yunus - it makes small loans !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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• "known as - microcredit - or "grameencredit" - without requiring collateral !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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• "the name Grameen - is derived from the word "gram" - which means - "rural"  !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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• "or "village" - the overwhelming majority - 97% - of its borrowers !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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• "are women - the Grameen Bank has distributed !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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• "BDT 1.437 trillion - US$ 20.92 billion - in loans !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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• "out of which BDT 1.317 trillion - US$ 19.02 billion - has been repaid !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANK - Wikipedia EN: LINK ¤ BANK