Category Archives: European banks

ECB’s Rate Cut And Liquidity Analgesic

The ECB’s latest rate cut and 36 month liquidity operations can ease interbank liquidity problems, but it acts more as a painkiller for a bullet wound and much deeper surgery is needed in the form of Euro Zone restructuring. Since … Continue reading

Posted in Austerity, Banking, ECB, Euro Zone, European banks, European Central Bank, France, Germany, Greece, Holland, Ireland, Italy, Merkel, Politics, Portugal, Spain | Tagged , , , , , , , , | 1 Comment

Euribor Spreads Show Worrying Reminder of 2008

The spread between secured and unsecured lending in the interbank markets as measured by the spread between 3-month Euribor and 3-month Eoniaswaps has taken a dangerously similar path to before the collapse of Lehman Brothers. Figure 1: 3mth Euribor spreads … Continue reading

Posted in Bailout, Banking, ECB, Euro Zone, European banks, European Central Bank, Germany | Tagged , , , , , , , , , | Leave a comment

Politicians Owe Banks A Bailout

One concern of the bank bailouts in 2008, was that capitalism works by allowing bad businesses to fail, enabling stronger growth through competition. However, although there may have been some validity to this given banks’ exposures to risky mortgage-backed securities, … Continue reading

Posted in Bailout, Banking, Bonds, Debt, Euro Zone, European banks, Greece, Portugal | Tagged , , , , , | Leave a comment

Euro Zone Needs Credible Bank Run Insurance

The financial markets are in crisis mode once again. The flight-to-quality is in full effect with safe haven assets in high demand; gold is breaking new highs every day while US and UK government bonds are falling to record lows. … Continue reading

Posted in Bailout, Banking, Bonds, Debt, ECB, Economics, Euro Zone, European banks, European Central Bank, France, Germany, Merkel, Recession, Sarkozy, US | Tagged , , , , , , , , , , , , | Leave a comment

In The Know

August 18 2011 WSJ – Fed Eyes European Banks : Regulators Scrutinize Ability of Institutions’ U.S. Units to Fund Themselves Federal and state regulators, signaling their growing worry that Europe’s debt crisis could spill into the U.S. banking system, are intensifying their … Continue reading

Posted in Bank of England, Bloomberg, BOE, China, Daily Telegraph, Debt, Euro Zone, European banks, Fed, Federal Reserve Bank of New York, Gold, Merkel, Monetary Policy Committee, Quantitative Easing, Recession, Reuters, Sarkozy, Tax, Unemployment | Leave a comment