tag:blogger.com,1999:blog-36227136.post1792578783673907371..comments2024-01-16T08:40:53.682+00:00Comments on <a href="http://www.openeurope.org.uk">Open Europe</a>: While everyone is talking bond-buying: Here's the first proposal for an EU banking union (leaked)OEhttp://www.blogger.com/profile/00556463374230498875noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-36227136.post-47554845686830182512012-09-10T15:34:52.802+01:002012-09-10T15:34:52.802+01:00In this leaked version there are ambiguities! For...In this leaked version there are ambiguities! For instance in para 9 it calls for β a true single rulebook for the single-market as a whole β This includes Britain and is unacceptable . But in the same paragraph it says βthe Banking Union should apply to all Euro area member states?β though being open to other members. This must be a VERY rough draft! <br /><br />This is a vital document providing -if agreed - a draft regulation applicable throughout the EU and to come into force on January 1st 2013 - a mere 112 days away . I wonder when the rest of the British media will notice.?<br /><br />Cameron as usual will avoid prior discussion like the plague `and vote to let it happen. However, although I agree with Idris above the final collapse will probably not happen till it is irredeemably wrecked so we need to stop this EU-wide madness in its tracks. christina Speightnoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-53733178444384360942012-09-10T11:55:38.194+01:002012-09-10T11:55:38.194+01:00Debating procedures and arguing about who controls...Debating procedures and arguing about who controls what is in these circumstances like the two pilots, flight engineer, cabin stewards and passengers arguing who should have the joystick after the tail has broken off.<br /><br />In other words and as I said at the "Spain - too big to fail" debate some months ago, its over, its finished, nothing can save it. Especially the nonsense of these plans which make plain even for those until now in denial, that the EU intends to control everything and make national governments utterly irrelevant.<br /><br />Democracy it ain't, not that it was ever intended to be.<br /><br />Let's stop pretending shall we - and just leave and get on with a prosperous and independent future outside this House of Hortors?<br />Idris Francisnoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-3099203494538932302012-09-10T11:48:33.548+01:002012-09-10T11:48:33.548+01:00Thank you, Open Europe, for showing us the plans. ...Thank you, Open Europe, for showing us the plans. Does it make any difference? The ECB is on the way out, as bond yields are showing. They are busy rowing upstream towards the superstate, while the tide is ebbing out faster than they can row.Rollohttps://www.blogger.com/profile/18255460090580758354noreply@blogger.comtag:blogger.com,1999:blog-36227136.post-69737613611717208332012-09-07T19:19:20.258+01:002012-09-07T19:19:20.258+01:00You never get things properly organised and legisl...You never get things properly organised and legislated if you not clearly seperate ECB/EZ from the rest. Furthermore it will take ages and makes a an agreement/treaty on this even highly unlikely. <br />Strong central supervision is imho a necessity within a monetary union. But if that forms the majority in the EU you get absolutely certain huge conflicts of interest.<br />It won't work and take ages and end up with all sorts of unpractical compromises when you do it differently. You simply need a 2 layer structure with alot of freedom for the outsiders and proper control on the inside.<br /><br />ESA simply doesnot fit well in this picture. Probably has to be split. General tasks for EU and close watchdog for the EZ. Anyway you probably need the people for the supervision.<br /><br />As far as small banks are concerned. As we see in Spain and Germany they are simply if they operate as a group systemic. Therefor in a working monetary union should be under central supervision. And you donot really know in advance when they do work together.<br />Winding down centrally good idea, now one of the problems in Spain.<br />Same rules for accounting to be able to compare (will likely be very timeconsuming to make that work).<br /><br />As a central regulator you should be the one with the international contacts.<br /><br />Problem is not only (even mainly capital). For a proper bankingsector you need proper bookkeeping rules. When start to make provisions, value on the BS, no roll overs to dodge the system allowed, etc.. Probably more important than a proper capitalposition.<br /><br />Rules to avoid massive highly correlated risk are imho also an essential. <br /><br />Anyway everybody has been sleeping before the last crisis. So it might help somewhat and we might learn from these mistakes. But as history shows next crisis is most likely coming out of a different corner. Riknoreply@blogger.com