Euromoney (June Issue)
2013/ 06/ 06 by jd in Global News
“European policymakers remain in a state of cognitive dissonance—recognizing the need for root-and-branch overhaul of peripheral banks, but backtracking on joint liability plans.” Christopher Flowers, who took over Japan’s filed Long Term Credit Bank in 2000, recently warned that the dithering may end abruptly. “There is a scenario where we have a Lehman-type event: we wake up some Thursday and a big country is in trouble. And the ECB will have to decide to support banks x, y, z. And then the ECB will, in fact, decide to own bank x, y, z. So this leisurely pace will end and we will wake up on a Monday morning with a European banking union.”
Tags: Banking union, Christopher Flowers, Europe, Japan, Lehman, LTCB
