the chief economist of Deutsche Bank calls for a 150 billion-euro EU program for the bank bailout. “It will have no choice but to launch a major program to recapitalize the banks,” said David Folkerts-Landau of the “Welt am Sonntag”.
The United States has led the way this 2008 with several hundred billion dollars unfassenden plan , For Europe, it should not be so much money. “With 150 billion euros can recapitalize European banks.”
In Europe, the banks threatened a slow, long-term downward spiral. The institutions are sitting on bad loans in the amount of two trillion euros. The Governing penalty interest burdened the financial industry, and the low share prices made it very difficult to get fresh capital in the market. “We are experiencing crises at ever shorter intervals. And I can not see where growth is to come from the best intentions. “
Special attention requires Italy, said Folkerts-Landau. There, the debt ratio climb further, and the country’s banks had non-performing loans of 350 billion euros in their accounts. “But this is more likely to be a lower limit.”
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allow the new EU banking Directive some flexibility, said the economist. “So may States institutions under certain conditions and for a very limited period of time provide capital.” The Directive requires, however, that first of all the private owners and creditors should arise for eight percent of the payment obligations before the state must step in.
the European Union has agreed that only private creditors and shareholders pay for the losses of a bank before the government stepping in. The Bank economist finds Folkerts-Landau not good. In Italy would meet the many private savers and could trigger a rush of customers to the banks. “Strictly to keep yourself on the rules would cause greater harm than they suspend” says Bank economist.
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