No end to Deutsche Bank’s problems: new litigations in the US and frailty in EU stress test

Deutsche Bank Towers – Walkway from Tower A to Tower B. Headquarters in Frankfurt am Main. (Deutsche Bank Audiovisual Services, August 6, 2015).

Last Wednesday, Deutsche Bank’s shares fell by 4.5% in the first hour of trading in Frankfurt, after the bank released its second quarter results, showing a measly profit of €20 million, in comparison to €818 million last year. The percentage fall of this stock is the biggest ever in such a brief time in the […]

Conflicting statistics and bad banks haunt the Eurozone

Peter Praet, member of the Executive Board and Chief Economist of the European Central Bank on the left, and Vincent Aussilloux, Director of the Department "Economics and Finance" of "France Stratégie". They both participated in the Seminar of the European Political Strategy Centre (EPSC) on the "European System of Competitiveness Authorities". Date: 15/10/2015. Location: Brussels - EC/Berlaymont. © European Union, 2015 / Source: EC - Audiovisual Service / Photo: Etienne Ansotte.

Last week, Eurostat, the EU statistical service, released its flash estimate of the GDP of the first quarter of 2016, finding it, in both the Eurozone and the EU28, to be 0.5% bigger in comparison to the previous period. In the fourth quarter of 2015, GDP had also grown by 0.3% and 0.4% respectively. Does […]

Who cares more about taxpayers? The US by being harsh on major banks or the EU still caressing them?

The EU is quite pathetic about establishing a common deposit guarantee scheme in the European Banking Union. In this way the EBU remains always a phantom institution. The sorry state of affairs is pictured above, where the last concrete action towards creating a really European deposit guarantee system took place many months ago (last December). From left to right, Mejra Festić, Vice-Governor of the Central Bank of Slovenia, Thierry Dissaux, Chairman of the Board of the Guarantee Fund for Deposit and Resolution (Fonds de Garantie des Dépôts et de Résolution - FGDR), Dirk Cupei, Head of the Department "Financial market stability" at the Association of German Banks (BdB - Bundesverband deutscher Banken), Alex Kuczynski, Coordinator of the EU Committee of the European Forum of Deposit Insurers (EFDI), Giuseppe Boccuzzi, Director General of the Italian Interbank Deposit Protection Fund, and Joseph Delhaye, Chairman of the Guarantee Deposit Association Luxembourg (Association pour la Garantie des Dépôts Luxembourg - AGDL). Date: 03/12/2015. Location: Brussels - EC/Berlaymont. © European Union, 2015 / Source: EC - Audiovisual Service / Photo: Etienne Ansotte.

The world economy remains more or less motionless or even recedes six years after the financial meltdown, because the banking industry has not yet decided what’s best for its interests. Continue leveraging itself (borrowing) on central bank liquidity in a stagnating environment, or start deleveraging and send the world to another deep recession, if not […]

European banking stress tests 2014: A more adverse approach for a shorter banking sector

Press conference by Michel Barnier, Member of the European Commission, on the establishment of a Single Resolution Mechanism for the Banking Union. (EC Audiovisual Services).

The aftermath of the financial crisis of 2007-2008 is mainly related to the banking sector. The capital adequacy of the European banks is an important aspect that European Regulation Bodies have to be aware of. During the past years the European Banking Authority (EBA) and the Committee of European Banking Supervisors are setting up simulations that […]

The EU banking union needs a third pillar guaranteeing deposits

European Parliament. Committee on Economic and Monetary Affairs (ECON). Hearing with Danièle Nouy, Candidate for the Chair of the ECB supervisory board (on the left), pictured here with Sharon Bowles (ALDE, UK), ECON Chair. (EP Audiovisual Services, 28/11/2013).

Daniele Nouy, secretary-general of the French Prudential Supervision Authority for banks, candidate to head Europe’s Single Supervisory Mechanism for lenders, speaking at the European Parliament last Wednesday stressed that, the “EU supervisor would be hampered if the two other pillars of banking union (recovery and resolution mechanism and deposit guarantee system) were not set up”. […]

ECB embarks on the risky trip to Eurozone banking universe

Olli Rehn, Vice-President of the European Commission in charge of Economic and Monetary Affairs and the Euro, participated in the EC/European Central bank (ECB) joint conference on Financial Integration and Stability. (EC Audiovisual Services).

The Single Supervisory Mechanism (SSM) of Eurozone banks has completed its cycle of approvals by all EU institutions and comes into force as from next month. After one year from now, that is as from November 2014, the European Central Bank will be responsible for the health of Eurozone’s banking system. Under the provisions of […]

The G7 fails to agree on growth but protects the big banks

Informal meeting between the EU and the Ministers for Trade of the G7 on the sidelines of the World Economic Forum in Davos, (EC Audiovisual Services).

Once more the world got together in the G7 group of the industrialised nations and asked Germany to spend more in order to help the rest of the Eurozone and the globe start growing again. The last time was in Washington during the Spring Conference of the International Monetary Fund and the World Bank, where […]

A new arrangement between Eurozone’s haves and have-nots

László Andor, Member of the European Commission in charge of Employment, Social Affairs and Inclusion, at the rostrum, participated in the conference on the Social Investment package entitled "Investment, innovation and Involvement", which was organised by the Irish Presidency of the Council of the EU. Joan Burton, Irish Minister for Social Protection, on the right, also attended the event. (EC Audiovisual Services, 03/05/2013).

The next European Council which is to take place in Brussels on Wednesday 22 May will be pivotal for the European Monetary Union (EMU), that is the Eurozone. Despite the fact that according to high-ranking Council officials there won’t be any decision on the EMU this month, there is evidence that the 17 Eurozone leaders […]

Draghi hands over to banks €77.7 billion more

Mario Draghi, Governor of the ECB, Olli Rehn, member of the EC in charge of Economic and Monetary Affairs and Michel Barnier, Member of the EC in charge of Internal Market and Services, (from left to right). The three of them are responsible of what is happening in Eurozone’s banking sector.

The European Central Bank lent but in reality handed over yesterday 9 January a total amount of €77.7 billion to a number of Eurozone banks, under an arrangement called Main Refinancing Operation (MRO) at the negligible interest rate of 0.7% for a duration of 7 days. This is however the upper side of the iceberg. It’s […]