THE BANKS AND THE PANAMA PAPERS.

Last week the bomb that connects thousands of offshore companies with political and media personalities from around the world exploted. But beyond the scandal, it is important to note how this fact affects your investments.

Panama was the featured topic of conversation in the world investors offices. 
According to the last news, this is the tip of the iceberg, it is only a small part of what they have information journalists; in the coming weeks will be very strong new products.  

The information they have in their hands the journalists is so great that equals:

- 4.8 million e-mails.
- 38 thousand books.
- 11.5 million records that support 40 years of recompilation of documentation.

Can you imagine that?. Besides this, it is extremely large in itself, documents involving 140 political leaders globally, including 12 current presidents. Weight figures as Lionel Messi, Saudi Arabia king, Argentina´s president and other personalities are directly or indirectly involved in this. 

From the first moment it is very interesting information: but for journalists, not for us as investors ...We have to see the consequences of this in the strict sense of our role as investors. Information is of little use if not used with this bias. 

So let's look a little more how the scandal papers Panama could affect your investment portfolio. 

The Banks Under Scrutiny 

Journalistic content filtering shows how the world's major banks have encouraged the creation of these offshore accounts in tax havens. More than 500 banks, including their parent companies and affiliates, including HSBC, UBS or Societe Generale, have created more than 15,000 signatures of these features to their customers through Mossack Fonseca, responsible for the creation of such entities In Panama. 

Undoubtedly, this calls into question the activity of banks in its unit private banking business, which gave so many gains over the past years, especially after the terminal crisis of 2008. 

Here it is not only questioned how these companies were gestated but mainly the origin of the funds which were then used to manage them and sizable investments by banks that charged a lot of commissions. 

Large international banks are in the eye of the storm at this time. This is an additional notice to the difficult circumstances that cross the entities. 

The worst thing would be to come .. And if this happens, it will be major problems for banks. All the scandal could cost billions of euros of profits if it is found that acted illegally.This scenario can generate a real earthquake in the world's financial heart. 

But it is not the only problem that banks face today. 
The negative interest rates in the world are making a dent in the balance sheets of these firms. Financial intermediation has lost its meaning because it is not good business for banks, apart from the lack of consumer confidence makes the demand is weakened. 

These are bad times for banking companies and this is a very complicated signal in the short term that puts pressure on the quarterly results to be reported in a few weeks.Shares of Panama may be the knockout blow for the sector in the immediate future. 

My advice is to stay away from the big banks at the moment. But, if you want to play a card of high risk, but promising a significant return, the inverse ETF and leveraged financial sector, this is the Directional Daily Financier Bear 3x Shares (NYSE:FAZ), can be an attractive bet.