Iran shifts billions from banks in Europe amid fears of UN sanctions

[occuserpens]

2006-01-20 Iraqi electricity crisis and Iranian fund transfers
Ewen MacAskill, Jill Treanor. Iran shifts billions from banks in Europe amid fears of UN sanctions

[tatertop]

1. Iran is going to boil our brats

This is so bad I cannot even imagine the outcome.
One thing is guaranteed: we are not going to like it.

[stepnw1f]

2. Fuck

WWIII is bound to occur.

[cliss]

3. This is really big news

and it's no doubt devastating news for Europe. I've read that Iran amazingly has over $50 billion deposited in various banks. London I believe is the banking capital of Europe.

They have themselves to blame for this. The Iranians are worried that the US will freeze their funds, like they did in the 1979 Iranian crisis.

I've read that they might move their money to Russia, maybe Saudi Arabia or possibly Singapore. I would bet on Singapore, because that's considered to be the world's safest economy, along with Switzerland.

So the Iranians pull their money out. What happens? All these banks are sitting there. They've made loans based on these deposits. Their financial statements & stock portfolios reflected all this money. Their value just tanked.

In the meantime, they have labor costs, fixed expenses, loan servicing, maybe investments using this money that's no longer there. I'd say they're in a crisis mode right now.

That's what you get for being friends with Bush.

[occuserpens]

4. Economically,

it is no big deal. But politically, it is ugly.

[cliss]

5. Well, we'll know in the next few days.

Will any banks fold over this? That's the big question. I'm going to stay tuned to English online newspapers. They love a juicy story, and I bet they're sharpening their pencils!!!

[NYC]

6. L17 billion (pounds) according to the Guardian.

...The Bank of England estimates Iran held about £2.25bn in assets in Britain at the end of last September. Iran's total overseas assets are reckoned to be about £17bn, held mainly in Europe and Asia. The funds could have been transferred from Europe to Asia...

[cantstandbush]

7. Can you hear me now, EU? I bet it hurts. n/t