Euromoney (April Issue)
“There is a strong feeling abroad that Europe is making good progress on the road to banking union, with a credible regulator in the European Central Bank soon subjecting banks to uniform regulation and chipping away at some of the fudges on asset quality that national regulators have previously winked at.”
Tags: Asset quality, Banking union, Banks, ECB, Europe, Feeling, Progress, Regulation, Regulator
Euromoney (June Issue)
“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
Financial Times (May 19, 2013)
“Europe’s recent lamentable growth numbers bring home the cost of poor policy. But after years of confusion, distraction and errors, eurozone leaders are focusing on the right task, as finance ministers did in their meeting last week: to build a banking union for the euro.”
Tags: Banking union, Errors, euro, Europe, eurozone, Finance ministers, Growth, Policy
