κραταμε σημειωσεις…. ΕΡΧΕΤΑΙ και η ΑΠΟΚΑΛΥΨΗ…

Από τον Πόρτα – Πόρτα‘Europe has been in a continuous state of systemic banking fragility since August 2007. Thiscontrasts with the US, where the systemic banking crisis phase ended in 2009, even though thebroader economic crisis continues to cast a shadow on America’s long-term fiscal outlook.’‘In many European countries, supervisory authorities harbour a culture of keeping sensitiveinformation tight between themselves and the supervised entities, and thus are inclined toresist calls for public disclosures about financial risks and exposures.’‘The solvency assessment of Europe’s banks crucially depends on the view one has of theseriousness of the sovereign crisis. The rapidity of contagion, which has extended to Italy and toFrench banks, suggests a conservative attitude is warranted, as the IMF is also arguing.’‘A different set of political leaders in Europe might have done better, but the core problem hasbeen the insufficient political mandate of the Commission combined with the misalignmentbetween the incentives of individual countries’ leaders and the collective European interest.’‘The short-term outlook in Europe is not encouraging. Things are likely to get worse before theycan get better. Too many European citizens, and too many of their leaders, remain in denial oftheir collective predicament, which prevents necessary initiatives from being undertaken.’——————————————————–In parallel with these structural changes, euro zone countries should pass emergency legislation to create a temporary instrument to help crisis resolution, following the successful examples of the US in 1989 and Sweden in 1993. This “European resolution trust corporation” (or Banking Treuhand, to borrow from the German) should, in close liaison with the EBA, take over those banks that cannot meet their capital needs through market mechanisms, restructure their operations, and resell the resulting entities as soon as market conditions allow.Admittedly, this program would involve huge challenges. One would be the growing tension between the euro zone and EU perimeters, underlined by recent controversies over the Vickers Commission’s recommendations and the ECB’s approach to clearing houses. More broadly, the political obstacles are massive. Calls for a European resolution fund or “euro-TARP” tend to downplay the need for a comprehensive underpinning of the entire institutional edifice of European banking policy.——————————————————–ΠΠFiled under: ΕΠΙΚΑΙΡΟΤΗΤΑ