In These New Times

A new paradigm for a post-imperial world

Posts Tagged ‘Bail in the banks!’

“Blunter approach” for too-big-to-fail banks

Posted by seumasach on February 18, 2016

“We cannot tolerate a financial system in which some firms are too big to fail—at least not ones that operate in any form other than that of a very tightly regulated utility.”

 

Reuters

19th November, 2012

It was kind of a big deal coming from the Federal Reserve Bank of New York’s influential president William Dudley. The former Goldman Sachs partner and chief economist has offered a fig leaf to those who say the problem of banks considered too-big-to-fail must be dealt with more aggressively. Some regional Fed presidents have advocated breaking up these institutions. But Dudley and other powerful figures at the central bank have maintained recent financial reforms have already laid the groundwork for resolving the issue.

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US banks still pose ‘nuclear’ threat to economy

Posted by seumasach on February 17, 2016

Another solution, he said, was to turn the big banks into public utilities by “forcing them to hold so much capital that they virtually can’t fail”.

Architect of 2008 bailout says US banks still pose ‘nuclear’ threat to economy

Guardian

16th February, 2016

America’s biggest banks present a “nuclear” threat to the US economy and should be broken up, a Federal Reserve policymaker and architect of the 2008 banking bailout said Tuesday.

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UK banks vulnerable to global shock, economist warns

Posted by seumasach on February 15, 2016

“There is still a heck of a gap, as you rightly point out, between 13% and the Vickers commission’s 18%, but the Vickers commission was operating on the assumption that there would not be bail-in-able debt, if I can put it that way, which we now have or shall shortly have.”

This is very interesting – he seems to be suggesting that this time round the creditors and, presumably, the shareholders will take the hit. When the banks go under again, as they inevitably must, they will be “bailed-in” rather than bailed -out following, perhaps,  the template established by Michel Barnier at the European Commision. This implies the end of the City of London as we know. We shall see.

Guardian

14th February, 2016

Britain’s banks are vulnerable to a global financial shock despite efforts to shore up their finances, according to the official who led the inquiry into the safety of UK banks following the 2008 crash.

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Posted in UK economy, Uncategorized | Tagged: , , | Leave a Comment »

Osbourne: Greek governmentt risk to global economy

Posted by seumasach on February 3, 2015

Osbourne is obviously only too aware of the revolutionary implications of a writedown of Greek sovereign debt : it will interfere with the ongoing writedown of private banking debt. It’s a pity that anti-austerity canpaigners don’t show the same awareness and recognise that the entire edifice of Wall Street, City of London finance capital, parasitic and destructive, has to come down if we are to end the downward spiral. Instead they persist with their neo-Keynesian fanatasies and their pretence that there is no systemic crisis. It remains to be see how far Tsipras’ grasp of reality goes and to what extent he can link up with elements within the European political class who recognise that the banking system is bust and has to be put through effective bankruptcy and replaced by a banking system orientated towards developing the real economy. As Obama said

“You cannot keep on squeezing countries that are in the midst of depression,” Obama told CNN.

“At some point, there has to be a growth strategy in order for them to pay off their debts to eliminate some of their deficits,” he added.

 

Greece’s Syriza govt could pose greater risk to global economy than Middle East conflict – Osborn

RT

2nd February, 2015

Greece’s standoff with Eurozone governments and international creditors poses a greater threat to the global economy than conflict in the Middle East, climate change and rising tensions between Russia and the West, UK Chancellor George Osborne says.

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Posted in Battle for Europe | Tagged: , , | Leave a Comment »

 
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