tag:blogger.com,1999:blog-36227136.post4999879065459406144..comments2024-01-16T08:40:53.682+00:00Comments on <a href="http://www.openeurope.org.uk">Open Europe</a>: Splits in Germany (and beyond) over banking union?OEhttp://www.blogger.com/profile/00556463374230498875noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-36227136.post-2713407954810311672013-05-15T15:36:57.986+01:002013-05-15T15:36:57.986+01:00By the time banking changes are approved by the Bu...By the time banking changes are approved by the Bundestag and then by the court in Karlsruhe the EZ it may be a bit late.<br /><br />Unless of course it is in the middle of a crisis. They will then act out of fear more than law.denbonoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-75345527709406722982013-05-15T07:59:29.958+01:002013-05-15T07:59:29.958+01:00@Rollo
Northern banks are bad but by far not as ba...@Rollo<br />Northern banks are bad but by far not as bad as Southern banks. Mainly for the following 2 reasons:<br />1) If you are operating in a country that is economically moving South you end up as a bank there with a lot of non-performing loans. Management system in the North might not be better (however often it is) , but the business enviroment is.<br />2) Germany (cs) can bail out its banks in a way that doesnot attract too much attention. Effectively it did after the crisis, Commerzbank is on the drip.<br />Would these Landesbanken and say Commerzbank have been Italian or Spanish that would not be possible.<br />The zombie-bank is artificially kept alive and with every disappointing news the risk comes again to the surface. Exactly what we see in Spain and Italy.<br /><br />ECB policies have tied PIIGS and its bankingsector together. Which was a desperate move, that only bought some time. But basically it is tying one nearly dead to another. One goes the other one goes with it. Long term it only would have worked if it is tying a healthy one of sufficient size to a zombie.<br />Another reason why bankingunion will not happen in nthis crisis. The North would via liable for the Southern banks (the South itself is not credible for that anymore). And subsequently via those banks for the sov PIIGS debt. Backdoor bail out with even less control than now.<br /> <br /><br />Riknoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-36087319109427590592013-05-14T12:14:26.010+01:002013-05-14T12:14:26.010+01:00Northern banks are nearly as bad as southern banks...Northern banks are nearly as bad as southern banks. What each means by banking union is different. Some countries think it means that they can borrow cheaply, and someone else will pick up the tab. Others think that it means they will be able to control the recipients. Neither is right.Rollohttps://www.blogger.com/profile/18255460090580758354noreply@blogger.comtag:blogger.com,1999:blog-36227136.post-85681972487689193992013-05-14T11:40:00.089+01:002013-05-14T11:40:00.089+01:00A Alemanha deve dar prioridade á união bancaria e ...A Alemanha deve dar prioridade á união bancaria e travar essa austeridade sem fim e permitir que as empresas beneficiarem de baixas taxas de juros Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-29559330636626431642013-05-14T06:18:55.290+01:002013-05-14T06:18:55.290+01:00thanksthanksAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-31735244317703169102013-05-13T21:15:58.188+01:002013-05-13T21:15:58.188+01:00Rather than wait for Angela or any other politicia...Rather than wait for Angela or any other politician maybe they should put it to the public?<br /><br />Hands up for those who want to be responsible for endless transfers or endless austerity?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-2426190882542530462013-05-13T19:13:13.422+01:002013-05-13T19:13:13.422+01:00Asmussen is not an leading political voice in Germ...Asmussen is not an leading political voice in Germany. <br />He is the ECB's sales representative for Germany.<br />ECB has a lot of power. But is simply not a decisionmaker in this issue. German parliament and Schauble as well are.<br /><br />It looks extremely difficult to get a full banking union approved in German parliament. And it is anyway most likely requiring a treatychange/ So that will be used for by all for which that is convenient. Schauble and certainly Merkel are not taking up a fight at home if not strictly necessary and certainly not one they might lose and before an election.<br /><br />The bankingsector needs clearly to be cleaned up especially in the South. But Germany is not guaranteeing that bill. This is completely against the direct interest of German banks as well. A lot donot operate internationally anyway and more important they already have a fund inplace (that likely would be used for spain/Italy).<br /><br />It simply comes down to that the treaty needs to be changed (and the bankingsector needs to be cleaned up first before Northern approval can be counted upon. So will not do much good for this crisis.<br /><br />The ECB has a huge conflict of interest there as well. Interestrates policy changes will never end up with the end user as long there is a party in between (Latino Bank) with huge funding costs. These costs will be added to the interest the end user will have to pay and are for a big part caused by the fact that everybody thinks these banks are de facto bust. And cheaper and more ECB money means that the other funders run more risks as basically all colateral moves to the ECB (which is de facto senior). In other words forget cheap credit for Latino SMEs as long as their bankingsector is a mess.<br />Anyway they are putting all their new funding (rise in private depositors mainly) in new Sov debt. Simply are doubling down. <br /><br />Anyway having the ECB running the show probably wil mean more pressure to clean up the Southern banks. for mainly local political reasons hardly anything has happened there. Apparently first a real crisis is necessary before the banks are cleaned up. Riknoreply@blogger.com