If 100% haircuts are assumed on all PIIGS bonds their Tier 1 capital ratio would be a healthy 6.7%. Of course if we ever had to write off all PIIGS debt 100% that would mean that the world financial system had collapsed and such ratios would be meaningless in figuring out how many cowrie shells to trade for a live chicken, or how to steal a live chicken and fend of the other looters.
At this point most of you readers probably think I'm some joker spouting off unsupported nonsense. Some joker? Perhaps. Unsupported nonsense definitely not. Input 100% haircuts for all 5 PIIGS into the sliders in the link below and you'll see, still 6.7% tier1. Quite amazing really. http://graphics.thomsonreuters.com/11/07/BV_STRSTST0711_VF.html
you can get the latest exposure numbers and trend in 3 steps:
1)ING CRO, Mr. Koos Timmermans to present at Bernstein conference
Amsterdam, 21 September 2011
"Today, Koos Timmermans, Chief Risk Officer of ING Group, will address the Bernstein Pan European Strategic Decisions conference in London, United Kingdom.
2)Download his presentation as .pdf file from here:
3)Goto page 10,
"Exposure to Southern European sovereigns further reduced"
Spain: Bank has 1.4 billion; Insurance has 0.9
Italy: Bank has 4.4 billion; Insurance 2.9 billion
From the presentation material as of 9/15/11:
Spain: 1.7 total, bank .8, insurance .9
Italy: 4.7 total, bank 1.9, insurance 2.8