BANKS RECAPITALIZATION3

IN SEARCH OF A SOLUTION TO THE DEBT CRISIS…

EUROPE’S BIG COMMERCIAL BANKS WILL BE FORCED TO FIND 108 Bn EUROS OF FRESH CAPITAL OVER THE NEXT 6 TO 9 MONTHS UNDER A DEAL TO STRENGTHEN THE BANKING SYSTEM AGREED BY EUROPEAN UNION FINANCE MINISTERS.

UNDER THE PLAN, NATIONAL SUPERVISORS WILL BE TOLD TO ENSURE THAT BANKS DO NOT MEET THE NEW CAPITAL TARGET BY SHRINKING THEIR OPERATIONS AND CUTTING BACK ON LENDING TO THE REAL ECONOMY.

THIS SEEMS TO BE THE PRICE TO PAY TO SAVE THE EURO…

 

RECAPITALISING EUROPE’S BANKS : YES …BUT WHERE TO FIND THE MONEY ?

PHLDUCX – Editor -