Not out of the woods yet

London, UK - 27th August 2011, 08:45 GMT

Dear ATCA Open & Philanthropia Friends

[Please note that the views presented by individual contributors are not necessarily representative of the views of ATCA, which is neutral. ATCA conducts collective Socratic dialogue on global opportunities and threats.]

1. Warren Buffett’s $5bn vote of confidence in BoA is aggressively priced and demonstrates that for all the denials, there was a problem lurking at BoA, as we were informing you in the last few weeks;

Not out of the woods yet...

2. The $5bn may be a good start but the total amount of funds needed may be an order of magnitude greater;

3. BoA could still become the poster child of the next phase of the global financial crisis depending on market uncertainties and ongoing liabilities; or

4. Another faltering European financial institution could trigger the next phase of the financial crisis if it does not find a Buffett equivalent quickly in Paris, Milan or Madrid;

5. Our computer models and scenario analyses suggest that the universal model of Large Cap Financial Institutions is on its last legs;

6. Big bank profits will be below par for years to come because of excessive new regulation, need to build capital reserves, toxic assets and rising liabilities;

7. Financial evolution suggests that “Small is beautiful”: time is ripe to encourage innovation via new private banks without any toxic legacies that are disallowed from taking on big risks and offer utility services;

8. The German mini-flash crash in the aftermath of the Buffett deal suggests that the markets are still very fragile and walking on glass courtesy of High Frequency Trading;

9. The epicentre of this phase of the financial crisis, which began four years ago on August 9th 2007, now appears to be in the Eurozone; and

10. Inactions of Eurozone powers are not engendering much needed confidence, the financial crisis is brewing stronger day by day, spawning many unknown unknowns with unintended consequences.

[STOPS]

We are hosting an Expert roundtable on this issue at ATCA 24/7 on Yammer.

[ENDS]

Expert Roundtables

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Q1: How to become a privileged member of ATCA 24/7 to participate in the expert roundtables?

A1: i. If you are a distinguished member of ATCA 5000, ATCA Open, The Philanthropia or HQR affiliated groups you may be allowed to become a privileged member of this new and exclusive private club.

ii. If you are pre-invited, visit the private intelligence network -- PIN -- by going to https://www.yammer.com/atca [Note: In https:// 's' is for security and encryption]

iii. If you don't have membership of the PIN yet, email the mi2g Intelligence Unit at intelligence.unit at mi2g dot com for an exclusive invitation.

Q2: How to participate in the expert roundtables and get domain-specific strategic intelligence questions answered?

A2: Access the ATCA 24/7 Private Intelligence Network -- PIN -- online and ask or answer a strategic intelligence question, no matter how complex. Receive expert answers within 24 hours or get pointers from:

i. ATCA 5000 experts who are online;
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Q3: Why is the ATCA 24/7 Q&A Exclusive Club special?

A3: ATCA 24/7 has now created an exclusive private intelligence watering hole and expert roundtable at the highest level where interesting and sophisticated questions are being asked from around the world, and intelligent answers are being provided, almost always by experts who have deep domain-specific knowledge. Come and check out the exclusive club, take it for a strategic test drive, which sign-of-intelligent life are you waiting for?

To learn more about "The Expert Roundtable: ATCA 24/7 Q&A Club" email: intelligence.unit at mi2g.com and if you are already a member visit https://www.yammer.com/atca

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Best wishes