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Economy
In reply to the discussion: STOCK MARKET WATCH, Monday, December 12, 2011 [View all]xchrom
(108,903 posts)57. The Crisis Has Reached a Systemic Level'
http://www.spiegel.de/international/europe/0,1518,803127,00.html
A stress test performed on European banks last week found a capital shortfall of some 115 billion euros. In a SPIEGEL interview, European Banking Authority head Andrea Enria defends the decision to perform the stress test and discusses the huge challenges facing the European banking sector.
SPIEGEL: Mr. Enria, the European Banking Authority was established with the aim of stabilizing the banking system. Has that plan worked out?
Andrea Enria: It is far too early to say. We started in January, in a very difficult market environment. It is like we are building our house and living in it, while outside there is a storm. But there are some very positive indications: One of the major shortcomings before the establishment of the EBA was the inability to decide and coordinate policy actions within the European Union. Already in the first months of its activity, the EBA has shown that this is different now.
SPIEGEL: At the moment it looks like the European banking system is more fragile than ever. What went wrong?
Enria: The banking sector has made major efforts to strengthen since the collapse of Lehman Brothers. But now the sovereign debt crisis is putting a lot of pressure on bank funding, especially in countries under stress. Since July, only a few banks have been able to finance their operations, and only at very high prices. If banks don't have funding, they don't lend, and this affects the real economy. We are locked in a vicious circle and we must try to break it.
A stress test performed on European banks last week found a capital shortfall of some 115 billion euros. In a SPIEGEL interview, European Banking Authority head Andrea Enria defends the decision to perform the stress test and discusses the huge challenges facing the European banking sector.
SPIEGEL: Mr. Enria, the European Banking Authority was established with the aim of stabilizing the banking system. Has that plan worked out?
Andrea Enria: It is far too early to say. We started in January, in a very difficult market environment. It is like we are building our house and living in it, while outside there is a storm. But there are some very positive indications: One of the major shortcomings before the establishment of the EBA was the inability to decide and coordinate policy actions within the European Union. Already in the first months of its activity, the EBA has shown that this is different now.
SPIEGEL: At the moment it looks like the European banking system is more fragile than ever. What went wrong?
Enria: The banking sector has made major efforts to strengthen since the collapse of Lehman Brothers. But now the sovereign debt crisis is putting a lot of pressure on bank funding, especially in countries under stress. Since July, only a few banks have been able to finance their operations, and only at very high prices. If banks don't have funding, they don't lend, and this affects the real economy. We are locked in a vicious circle and we must try to break it.
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I think it belongs in LBN for the same reason that even NPR updates Market numbers all day
bread_and_roses
Dec 2011
#23
Wow, this is like back to the future. It's already Monday somewhere, I guess - LOL!
InkAddict
Dec 2011
#11
Perhaps lobbying the rotating honchos at LBN and/or Admin could recover SMW posting rights there,
Ghost Dog
Dec 2011
#98
Once again, the SMW thread that was posted and locked was NOT a current SMW OP
Tansy_Gold
Dec 2011
#97
There is a lot of deja vu going on, and to different periods of modern European history.
amandabeech
Dec 2011
#87
Well, perhaps here is a market opening for a firm actually contractually committing itself to not
amandabeech
Dec 2011
#88