Toward the end of 2015, Portugal bailed in some senior creditors in addressing a failed bank. Many observers were aghast. This was thought to be horrific and uncivilized by some of the very same people who are critical of the EU and Italy’s decision not to bail in senior creditors in the two failed regional …
And Yet it Moves: Understanding Why Italy’s Threat is Exaggerated Read More »
Challenges for European Banks – Marc to Market Edit Concerns about the health of the European banking system tend to focus on bad loans and profitability. In a speech this week, ECB’s Vice President Constancio suggested that officials were looking at two other issues. First, Constancio expressed concerns about the “unconstrained” ability of banks to …
European banks may not be the main driver of the investment climate, but their challenges are not resolved. Investors have focused on two country’s banks recently. Germany’s Deutsche Bank and Italian banks more generally. This Great Graphic, made on Bloomberg, shows how closely the two have moved in tandem. The white line is Deutsche Bank …
The health of European banks has reemerged as an important market factor this year. The IMF warned that the greatest risk to global financial stability stems from three European banks. Branches of two European banks failed the Federal Reserve’s stress test. And this does not even mention the Italian banks, and especially the oldest bank …
Great Graphic: European Banks Bad Loans and Coverage Read More »
The results of the latest stress tests on European banks are expected to be released at 10:00 am CET (5:00 am ET). The tests cover a little more than 50 of Europe’s largest banks, with around 80% domiciled in the eurozone. The banks will be tested under two scenarios. The first scenario is EC’s economic …
The European Court of Justice upheld the principle of making creditors bear the burden for investment in banks that sour before government funds can be used. Italian banks are particularly sensitive to the ruling, which cannot be appealed because the European Banking Authority and European Central Bank stress tests on July 29 are expected to …
European Court of Justice Ruling Weighs on Italian Banks Read More »
With Brexit, the pressure on Italian banks, and the surge and then sell-off in the yen, Spain may have been pushed off some investors’ radar screens. There are three important developments to note. The first is related to Spanish banks. The Advocate-General of the European Court of Justice (ECJ) opined today that Spain could impose …