Accelerating Discussions to Recapitalize European Banks Are Credit Positive
Last week, discussions across Europe about recapitalizing banks and ensuring support for stressed euro-area sovereigns accelerated. On Wednesday, European Commission (EC) President Jose Manuel Barroso announced a plan to strengthen systemically important banks’ capital.8 The next day, Slovakia’s parliament approved legislation that will make it possible for the European Financial Stability Facility (EFSF) to finance bank recapitalizations. Then, on Friday, French Finance Minister Françoin Baroin reported progress in talks with his German counterpart on a raft of measures for the European Union (EU) to adopt to address the current crisis.
These developments are credit positive for European banks, although more capital alone will bring only temporary respite.9 The crisis has morphed into a systemic sovereign and banking crisis and is pushing European governments towards more mutual support. This is crucial to arresting mounting sovereign debt concerns, which is the underlying factor fueling investors’ worries about European banks. .....................
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
No comments:
Post a Comment