First Of Many: Standard Chartered Hit By Billions In Losses From Commodity Crash
by Tyler Durden
ZeroHedge.com
01/13/2015
Now that even the pundit brigade has confessed that crashing crude may not be the “unambiguously good” event all of them had sworn as recently as a month ago it surely would be, and stocks are finally comprehending that plunging oil may well be rather “unambiguously bad” because without EPS growth (energy is well over 10% of S&P EPS), without multiple expansion (rumor has it the Fed will hike this year), without a jump in stock buybacks (energy companies account for 30% of the buyback growth in 2015 according to Goldman) and without a boost to GDP (energy capex plans are imploding), the only way is down. But there was one key element missing from the “bad” scenario: impaired banks. At least until now, because as Reuters reports, Asia-focused bank Standard Chartered is the first (of many) bank facing billions in losses resulting from the crude crash.
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