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BarCampBankLondon Peak Credit
- 1. Peak Credit A Flight to Simplicity Chris Cook – BarCampBank London 5th July 2008
- 8. A Bank is also a Credit Intermediary – or “Middleman” Bank Borrower Lender £ £
- 10. A Bank guarantees borrowers’ credit…
- 13. … plus its operating costs and any defaults by borrowers..
- 19. … .and Banks started to “outsource” their implicit Guarantee….
- 21. … totally – by “securitising” debt and selling it to investors….
- 23. … and partially – using “Monoline” credit insurers
- 25. … with Risk “Diced and Sliced”… Investor Capital Credit Bank Capital
- 26. … so that no one knew where the risk lay…
- 33. … .such as buildings, wind turbines, and software……
- 37. … .such as loans secured against property (ie mortgages)….
- 38. … .which are the source of over two thirds of dollars and sterling ever created…..
- 42. … until last year we saw the culmination in the US of the “Mother of all Bubbles”….
- 47. … .if this is what OUR balance sheet looks like…..
- 49. So Banks now charge more for their implicit guarantees…..
- 50. … .and are much more discriminating in relation to counterparty risk…..
- 52. … .so that “wholesale” lending to other banks has all but dried up…..
- 57. The Result is that the pool of Capital supporting the credit pyramid….
- 69. “ Trade” credit is extended “peer to peer” when Seller gives Buyer “time to pay”….
- 77. … .by both sellers and buyers, since all benefit…
- 80. … .such as units of energy or property rental value….
- 83. … .but manage “peer to peer” credit creation…
- 88. The kind of “Equity” finance Capital we are used to…
- 91. … which is what makes the “Private Sector” Private
- 93. … at the financial revolution based upon credit innovation…
- 94. … there have been interesting developments “under the radar”….
- 97. … .where part of the gross Corporate revenues are “unitised”….
- 101. … they are getting their hands on corporate revenues….
- 103. … there are lots of other new ways to “invest” in assets…
- 106. … and not forgetting Islamic finance “Sukuks”
- 108. … and you don’t know what you haven’t got ‘til you see it
- 109. … in 2001 the UK inadvertently made “the Corporation” redundant..
- 110. … when they introduced the UK Limited Liability Partnership (“LLP”)
- 111. An LLP can do anything a Corporation can do..
- 113. … and you can’t lose more than you put in..
- 118. … and both make possible a “Capital Partnership”
- 119. Introducing the Capital Partnership Capital Partnership Investors Users Revenues Managers % % Custodian Ownership
- 120. … .property is held by a “Custodian”..… Capital Partnership Investors Users Revenues Managers % % Custodian Ownership
- 121. … .and Investors put in money, or “money’s worth” Capital Partnership Investors Users Revenues Managers % % Custodian Ownership
- 122. … .which Managers use to fulfil the agreed purpose… Capital Partnership Investors Users Revenues Managers % % Custodian Ownership
- 138. … and not a claim over value..
- 144. … but finance development by issuing non –redeemable “units” to investors…
- 147. … and a shrunken National Debt.