Dinar Daily
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Latest topics
» Deadly stampede could affect Iraq’s World Cup hopes 1/19/23
European banks face major reckoning I_icon_minitimeYesterday at 6:02 am by Ditartyn

» Dave Schmidt - Zim Notes for Purchase (NOT PHYSICAL NOTES)
European banks face major reckoning I_icon_minitimeSat Mar 23, 2024 9:25 am by swizzlestick

» ZIGPLACE
European banks face major reckoning I_icon_minitimeWed Mar 20, 2024 6:29 am by Zig

» CBD Vape Cartridges
European banks face major reckoning I_icon_minitimeThu Mar 07, 2024 2:10 pm by Arendac

» Classic Tony is back
European banks face major reckoning I_icon_minitimeTue Mar 05, 2024 2:53 pm by Mission1st

» THE MUSINGS OF A MADMAN
European banks face major reckoning I_icon_minitimeMon Mar 04, 2024 11:40 am by Arendac

»  Minister of Transport: We do not have authority over any airport in Iraq
European banks face major reckoning I_icon_minitimeMon Mar 04, 2024 11:40 am by Verina

» Did Okie Die?
European banks face major reckoning I_icon_minitimeMon Mar 04, 2024 11:34 am by Arendac

» Hello all, I’m new
European banks face major reckoning I_icon_minitimeWed Jan 31, 2024 8:46 pm by Jonny_5

» The Renfrows: Prophets for Profits, Happy Anniversary!
European banks face major reckoning I_icon_minitimeWed Jan 31, 2024 6:46 pm by Mission1st

» What Happens when Cancer is treated with Cannabis? VIDEO
European banks face major reckoning I_icon_minitimeWed Jan 31, 2024 8:58 am by MadisonParrish

» An Awesome talk between Tucker and Russell Brand
European banks face major reckoning I_icon_minitimeWed Jan 31, 2024 12:16 am by kenlej

» Trafficking in children
European banks face major reckoning I_icon_minitimeMon Jan 29, 2024 7:43 pm by kenlej

» The second American Revolution has begun, God Bless Texas
European banks face major reckoning I_icon_minitimeMon Jan 29, 2024 6:13 pm by kenlej

» The Global Currency Reset Evolution Event Will Begin With Gold, Zimbabwe ZWR Old Bank Notes
European banks face major reckoning I_icon_minitimeSun Jan 28, 2024 3:28 pm by Mission1st

» Tucker talking Canada
European banks face major reckoning I_icon_minitimeWed Jan 24, 2024 6:50 pm by kenlej

» Almost to the end The goodguys are winning
European banks face major reckoning I_icon_minitimeMon Jan 22, 2024 9:03 pm by kenlej

» Dinar Daily Facebook Page
European banks face major reckoning I_icon_minitimeMon Jan 22, 2024 3:34 pm by Ponee

» The Fundamentals of Finance and Pimpy Live
European banks face major reckoning I_icon_minitimeThu Jan 18, 2024 7:17 am by Dinarhater

» Why Won't the Iraqi Dinar Scam Die?
European banks face major reckoning I_icon_minitimeWed Jan 17, 2024 5:19 pm by RamblerNash

European banks face major reckoning

Go down

European banks face major reckoning Empty European banks face major reckoning

Post by lexie Thu Sep 15, 2011 8:20 am

9/14/11


Jeffrey Sachs, an economics professor at Columbia University, talks about the European debt crisis, the U.S. economy and imbalances in global living standards. (Sept. 14)

Video
http://www.washingtonpost.com/business/sachs-says-europe-has-approached-precipice-with-crisis/2011/09/14/gIQAuVlZSK_video.html

**************************************************************************
European banks face major reckoning


.If a major bank were to fail, that could send shock waves across the Atlantic, buffeting U.S. financial companies with close ties to their European counterparts or major investments in Europe.

The downgrades by Moody’s added fuel to a debate among European and U.S. policymakers over whether the continent’s banks are mostly healthy or instead need billions of dollars in additional capital to withstand likely losses on loans made to countries like Greece, Portugal and Italy.

Greek bonds are already being resold at half their face value because of the high risk of default. If these losses mount, they could eat away at the capital buffer of banks across Europe, raising the prospect of an outright bank failure — which some financial analysts fear could cause the global financial system to seize up as it did after the Wall Street investment bank Lehman Brothers collapsed in 2008.

The question of whether European banks are dangerously short of capital will be a point of contention as European finance ministers gather in Poland on Friday and the International Monetary Fund holds its annual meetings next week. IMF Managing Director Christine Lagarde has argued that European banks need a quick and large capital infusion, and U.S. Treasury Secretary Timothy F. Geithner in a CNBC interview on Wednesday said European leaders are “behind the curve” in addressing the region’s banking and other problems.

In cutting the rating of Credit Agricole, Moody’s cited the French firm’s “sizeable exposure to the Greek economy.” The rating company downgraded Societe Generale because of broader concerns about the outlook for French banks. This action may make it more difficult or more expensive for the banks to raise the money they need to operate — bad news in an environment where financial firms already mistrust each other and are charging more to lend to each other.

French bank officials have said they regard their capital buffers as adequate, and French central bank governor Christian Noyer on Wednesday said Moody’s action was “relatively good news.” With some investors predicting that Moody’s would slash the banks’ rating even more, Noyer told French radio, “It’s a very limited downgrade,” according to wire service reports.

Some banks have been turning to the European Central Bank for help. On Wednesday, the ECB reported that two European banks had tapped it for dollar-based loans, a sign the firms were struggling to find the money they need on the open market. The banks were not named.



http://www.washingtonpost.com/business/economy/european-banks-face-major-reckoning/2011/09/14/gIQAsfN2SK_story.html?wpisrc=nl_headlines



lexie
lexie
Elite Member
Elite Member

Posts : 1812
Join date : 2011-06-24

Back to top Go down

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum