Interpreting Middle East Economic News and Analyzing Market Trends

Category: Bail-outs & Bail-ins

Market outlook for the remainder of 2015: Negative

Financial Crisis Ahead

I recently prepared a detailed report to one of my clients on the market outlook for the rest of 2015.  The findings in the report were a bit of a shock to them, but nevertheless, they accepted them as real possibilities given recent developments.  I would like to share with you the highlights of the report so that you can prepare yourself for what lies ahead, or at least offer you a different point of view from the ‘recovery is taking hold’ crowd.  More importantly, I urge you to take a close look at the ‘elephant in the coal mine’, Deutsche Bank.

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The next financial crisis and how it will affect GCC countries

 

This is a presentation I gave recently in Dubai discussing my new book titled ‘Islamic Finance and the New Financial System: An Ethical Approach to Preventing Future Financial Crises.” 

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Deflation, defaults, social unrest and other ‘surprises’ waiting for us in 2015

Financial Crisis - Slideshare

Photo: Slideshare.net

    

As 2014 comes to an end, we wanted to take a look back at events and trends over the past few years and give you some of our thoughts on what we expect to see in 2015.  We decided to make a list… a top 10 list of ‘surprises’ we expect to see in the coming year.  Here they are… enjoy…  

     

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Qatar invests 1.75 billion euros in Deutsche Bank, but does it know what it’s investing in?

Hamad_Bin_Jassim

Investment company owned Sh. Hamad Bin Jassim Al-Thani invests in Deutsche Bank

 

Deutsche Bank has teamed up with a Qatari investment company owned by Sh. Hamad Bin Jassim Al-Thani to help raise 8 billion euros in fresh capital for the bank.  DB claims its for expansion plans, but this comes a year after it was forced to raise 3 billion euros by banking regulators.  Are any alarm bells going off?  If not, then add to this the fact that Qatar’s 1.75 billion euro investment was purchased at a 25-30% discount… are the bells ringing yet?

 

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Former CEO of bailed out Spanish bank becomes new CEO of Kuwait’s Gulf Bank

 

Novagalicia Banco Cesar Gonzalez

Fomer CEO of Novagalicia, César González (left) and president, José María Castellano (right) Source: La Vanguardia

Kuwait’s Gulf Bank announced that is has hired Cesar Gonzalez-Bueno to be its new CEO.  Mr. Gonzalez was the former CEO of bailed out Spanish bank, Novagalicia Banco.  Gulf Bank was also bailed out back in 2009 after derivative losses stemming from the financial crisis.

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