The Anglo-Dutch oil major may put about $15 billion into non-European assets such as U.S. government bonds and bank accounts, according to the company’s Chief Financial Officer Simon Henry.
However, Shell said it will not move all of its funds out of Europe as it’s required to keep some money in the EU to fund its operations.
Asked if Shell regarded the risk in Germany differently to some of the eurozone’s southern and heavily indebted members, Henry said: “We differentiate between different credit risk.”
Analysts say if other companies were to follow Shell in removing their money from European banks the lenders would be forced to lift credit costs.
“It could be a difficult situation for the banks. Bigger banks may have to look for other sources to supply their liquidity, while smaller banks could simply be forced out of the market..However the move of one company does not mean other companies will follow suit,” Investcafe analyst Yekaterina Kondrashova told RT
She also said that by choosing between a developing economy and a developed country like the US Shell preferred the latter because it has more trust in its financial system. “The majority of investors do not associate Russia with a stable economy,” Kondrashova said.
However Shell has been eyeing business opportunities in a new “more open” Russia.
The company was said to be in talks with state-owned Gazprom about joining the huge Shtokman LNG project in the Russian Arctic.
This seems like a clear case of robbing Peter to Paul. The dollar is set to crash as is the Euro, desperation rings out as shell try to hold onto their billions.
Some are of the mindset that the current global financial crisis is the fault of the Americans. The Global Financial Crisis is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s. The crisis is playing a significant role in the failure of key businesses, declining consumer wealth estimated in trillions of US dollars and a downturn in economic activity.
The bursting of the U.S. housing bubble, which peaked back in 2006 caused the values of securities tied to U.S. real estate pricing to crash, damaging financial institutions globally. The financial crisis was triggered by a complex interplay of the overvaluation of bundled sub-prime mortgages.
All this has been conveniently forgotten by Shell. They have chosen which horse they wish back and it’s not Europe.
Some would say that this is yet another sign of collapse by design, moving bad debt and unstable investments along with other forms of money around thus spreading the cancer and is part of a plan to collapse the economies of western nations.
A zionist engineered collapse of Europe designed to create the Euro-Atlantic Reich or Transatlantic Market. ‘God’s Work’ according to Goldman Sachs financial terrorist Blankfein.
“Greece is insolvent and will default on its debts, Fitch Ratings Managing Director Edward Parker said. The euro area’s most indebted country is unlikely to be able to honor a March 20 bond payment of 14.5 billion euros ($18 billion), Parker said in an interview in Stockholm today. Efforts to arrange a private sector deal on how to handle Greece’s obligations would constitute a default at Fitch, he said. “The so called private sector involvement, for us, would count as a default, it clearly is a default in our book,” Parker said. “So it won’t be a surprise when the Greek default actually happens and we expect it one way or the other to be relatively soon.” Europe’s debt crisis is likely to be “long and drawn out,” Parker said.” And here we go again, with official attempts to make what appeared apocalyptic as recently as a month ago, seem trite, boring and perfectly anticipated. In other words, the fact that this like every other piece of bad news that should be priced in, is priced in, is priced in. And so on, at least according to the kleptocrats, until we finally learn that nothing is priced in but endless market stupidity. Taken From Bloomberg.