If You Have Done Nothing Yet, Why?
Posted June 22nd, 2013 at 11:47 AM (CST) by Jim Sinclair & filed under General Editorial.http://www.jsmineset.com/2013/06/22/if-you-have-done-nothing-yet-why/
Dear CIGAs,
Bail-in is coming at warp speed towards you and you are doing nothing whatsoever. For your sake, Why?
Banking collapse ‘bail in’ dispute
JOHN O’DONNELL, ROBIN EMMOTT AND INGRID MELANDER
Last updated 15:42 22/06/2013
Europe failed to agree on how to share the cost of bank collapses today as Germany resisted attempts by France to water down rules designed to spare taxpayers in future crises.
Almost 20 hours of talks late into the night could not forge a way for countries to set up an EU-wide regime that would first impose losses on shareholders and bondholders when a bank fails, followed by depositors with more than €100,000 (NZ$160,000).
Ministers will make a fresh attempt to break the impasse at a meeting on Wednesday, on the eve of an EU leaders summit, and resolve one of the most difficult questions posed by Europe’s banking crisis – how to shut failed banks without sowing panic or burdening taxpayers.
”I think we can reach a deal if we take a few more days,” said Michel Barnier, the European commissioner in charge of regulation.
”We are not far off now from a political agreement.”
The European Union spent the equivalent of a third of its economic output on saving its banks between 2008 and 2011, using taxpayer cash but struggling to contain the crisis and – in the case of Ireland – almost bankrupting the country.
German Finance Minister Wolfgang Schaeuble blamed the complexity of the issue and conflicting interests for not being able to reach a final result on Saturday. One EU official, who asked not to be named, described the meeting as chaotic.
At the heart of the disagreement, chiefly between Germany and France, was how much leeway countries should have when imposing losses on bondholders or large savers, a procedure known as ”bail-in”.
More…
Dear CIGAs,
Bail-in is coming at warp speed towards you and you are doing nothing whatsoever. For your sake, Why?
Banking collapse ‘bail in’ dispute
JOHN O’DONNELL, ROBIN EMMOTT AND INGRID MELANDER
Last updated 15:42 22/06/2013
Europe failed to agree on how to share the cost of bank collapses today as Germany resisted attempts by France to water down rules designed to spare taxpayers in future crises.
Almost 20 hours of talks late into the night could not forge a way for countries to set up an EU-wide regime that would first impose losses on shareholders and bondholders when a bank fails, followed by depositors with more than €100,000 (NZ$160,000).
Ministers will make a fresh attempt to break the impasse at a meeting on Wednesday, on the eve of an EU leaders summit, and resolve one of the most difficult questions posed by Europe’s banking crisis – how to shut failed banks without sowing panic or burdening taxpayers.
”I think we can reach a deal if we take a few more days,” said Michel Barnier, the European commissioner in charge of regulation.
”We are not far off now from a political agreement.”
The European Union spent the equivalent of a third of its economic output on saving its banks between 2008 and 2011, using taxpayer cash but struggling to contain the crisis and – in the case of Ireland – almost bankrupting the country.
German Finance Minister Wolfgang Schaeuble blamed the complexity of the issue and conflicting interests for not being able to reach a final result on Saturday. One EU official, who asked not to be named, described the meeting as chaotic.
At the heart of the disagreement, chiefly between Germany and France, was how much leeway countries should have when imposing losses on bondholders or large savers, a procedure known as ”bail-in”.
More…