Friday, December 30, 2016

Monte dei Paschi – Now no Bank should ever go more bankrupt Sü

Banca Monte dei Paschi is not in the least bit relevant to the system. Nevertheless, the EU-Commission approves rescue. She throws all resolutions overboard and brings Europe permanently in danger.

Siena, the Tuscan town, is a place of longing, culturally and historically. Here also the Banca Monte dei Paschi di Siena is the oldest Bank in the world. It would have grieved the one or the other, if this would have been completed more than half a Millennium old money house. This will not happen, the EU Commission has approved, on Thursday evening, state aid for the Italian banks. Instead, one should practice but now concerned that European law will be bent and all of the intentions of a future, better fiscal policy in the Euro-Zone, thrown overboard, save only to such a Bank.

Unfortunately, this is happening exactly, and with full intention. Amazingly, there was hardly any political resistance against this Bank bailout – although they are checkered-year long reform efforts counter-attack and Europe was finally in danger.

In Italy, returns to the financial crisis

The rescue of the crisis Bank Monte dei Paschi failed. Now the Italian government steps in – with the largest nationalization since the thirty years. By Stephan Radomsky and Ulrike Sauer more …

is The principle of the Directive clearly – but that is all no matter

Actually, everything was arranged quite differently. As the first shock of the 2007 outbreak of the financial crisis was processed and the States to the rescue rushed, as the damage for the economies, for the state budgets and the credibility of the political systems was seen, as the European leaders had promised to create a System in which banks own mistakes would have to pay. In the last consequence this means that the task of the company – as in other industries.

For a year the created EU resolution Directive is in force. She is wearing not so typical chic EU-speech-acronym, but listen to the ugly abbreviation BRRD. One could almost

The new law is intended to prevent troubled banks have to be bailed out by the taxpayer, as this was done after 2007, in many cases, and also in Germany. The principle is clear, and his permission is not denied in times of Bank lobbyists really: the cost of The remediation or closure of a Bank must first carry the owners and creditors, shareholders, bondholders and depositors with larger balances.

From now on would have to be every little savings Bank saved

as far as the super-rich or large-scale investors are affected, the also a lot of applause. However, since in the case of the Bank of Siena has many small savers hold bonds (an Italian feature), and now, therefore, be losing money, penetrates the Roman government with a view to the next election on an exception to the European rule and the EU-bodies will grant you this willingly. To bad the European model of a derogation clause of the resolution Directive is used to pump 20 billion euros into a rescue Fund. Details are not yet known, the rescue operation is so complicated that in the end, only experts.

the principle that the glass should be clear: anyone Who gambled, whose strategy is succeeding, who is not a business model that works more that goes into the insolvency. These conditions do not apply all of them on the Bank of Siena, which is also about “system relevant”, whose bankruptcy would not trigger a new global financial crisis. As harsh as this sounds: The Banca Monte dei Paschi di Siena is dispensable.

must be saved, If not more, this small Italian Bank must go bust, then in the future, every savings Bank anywhere. But why should, if the state would assume responsibility guarantees, nor anyone to think about risk management and responsibility?

Brussels is treading from a political fear of a dangerous path. And the Federal government makes this a bad game in the eyes.

Wags to Italy, then shakes soon to Europe

The Bank Monte dei Paschi can only be saved by the Italian state. This reflects the crisis in the country and the monetary Union. comment by Thomas Steinfeld more…


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