The European financial crisis is far from over. The European Central Bank is calling for greater amounts of depositor insurance to help reduce bank runs. Without it, the ECB says, the financial chaos will spread virally.
A couple of banking system worries
Concerns about whether Spain's banking system will fail and whether Greece will survive in the euro area at all have deflated the value of euro currency to a two-year low against the United States dollar. Looking for a comparatively safe investment, European speculators have funneled their money into Austrian and French bonds, whose 10-year yields are at their low mark since the introduction of the euro.
Spanish banks moved huge amounts of money abroad in March at a rate faster than has been recorded since record-keeping of such transactions began in 1990, notes the AP. The country's fourth-largest lender, Bankia, reportedly was nationalized in May due to huge losses following a real estate crash. As much as $82 billion in net capital has been lost by Spanish banks in recent months.
Plan for bailout not confirmed
International Monetary Fund Managing Director Christine Lagarde denied reports that the International Monetary Fund is preparing for a Spanish bank bailout to keep Europe's economy from sinking further into the mire.
"There is no such plan. We have not received any request to that effect and we are not doing any work in relation to any financial support," said Lagarde.
A referendum in Ireland would make it easier for the European Union to offer aid to Ireland voters, according to the New York Times. There is also an election in Greece on June 17 that will go a long ways towards to euro zone for the nation. Right now, the bank bailout favoring New Democracy party is beating the SYRIZA leftists, which is a good thing for people who want bank bailouts.
A demand for clarity
European Central Bank President Mario Draghi has made it clear that European leaders must decide where their nations stand in relation to the euro quickly, and that the ECB will not write economic policy for the entire euro zone.
"We will avoid bank runs from solvent banks. Depositors' money will be protected if we build this European guaranteed deposit fund. This will assure that depositors will be protected," said Draghi.
German Chancellor Merkel is one person who has suggested that Europe should think about options since Germany has been unwilling to support the union with its taxpayers' money in the past. It is the paymaster of the European Union, but the ECB wants a joint deposit guarantee for depositors.
"There are integration steps which will require treaty changes. We are not at that stage today but nevertheless there are no taboos," she said at a news conference.
A ton of concern will not help
It is not a good idea to stay cautious at this time, according to Draghi, although financiers are really worried due to the European economic crisis.
"I urge all governments to keep this in mind, because it is better to err by too much in the very beginning rather than by too little," he said, citing the recent failures of Spain's Bankia and the French-Belgian bank Dexia.
A couple of banking system worries
Concerns about whether Spain's banking system will fail and whether Greece will survive in the euro area at all have deflated the value of euro currency to a two-year low against the United States dollar. Looking for a comparatively safe investment, European speculators have funneled their money into Austrian and French bonds, whose 10-year yields are at their low mark since the introduction of the euro.
Spanish banks moved huge amounts of money abroad in March at a rate faster than has been recorded since record-keeping of such transactions began in 1990, notes the AP. The country's fourth-largest lender, Bankia, reportedly was nationalized in May due to huge losses following a real estate crash. As much as $82 billion in net capital has been lost by Spanish banks in recent months.
Plan for bailout not confirmed
International Monetary Fund Managing Director Christine Lagarde denied reports that the International Monetary Fund is preparing for a Spanish bank bailout to keep Europe's economy from sinking further into the mire.
"There is no such plan. We have not received any request to that effect and we are not doing any work in relation to any financial support," said Lagarde.
A referendum in Ireland would make it easier for the European Union to offer aid to Ireland voters, according to the New York Times. There is also an election in Greece on June 17 that will go a long ways towards to euro zone for the nation. Right now, the bank bailout favoring New Democracy party is beating the SYRIZA leftists, which is a good thing for people who want bank bailouts.
A demand for clarity
European Central Bank President Mario Draghi has made it clear that European leaders must decide where their nations stand in relation to the euro quickly, and that the ECB will not write economic policy for the entire euro zone.
"We will avoid bank runs from solvent banks. Depositors' money will be protected if we build this European guaranteed deposit fund. This will assure that depositors will be protected," said Draghi.
German Chancellor Merkel is one person who has suggested that Europe should think about options since Germany has been unwilling to support the union with its taxpayers' money in the past. It is the paymaster of the European Union, but the ECB wants a joint deposit guarantee for depositors.
"There are integration steps which will require treaty changes. We are not at that stage today but nevertheless there are no taboos," she said at a news conference.
A ton of concern will not help
It is not a good idea to stay cautious at this time, according to Draghi, although financiers are really worried due to the European economic crisis.
"I urge all governments to keep this in mind, because it is better to err by too much in the very beginning rather than by too little," he said, citing the recent failures of Spain's Bankia and the French-Belgian bank Dexia.
About the Author:
How many times have you expected additional information on the best waypayday loans, and resorted to an internet search on "short terms loans?" Your search is over, all the info you need is at http://www.MatchFinancial.com!
Aucun commentaire:
Enregistrer un commentaire