European Union Economic and Monetary Affairs Commissioner Olli Rehn has emerged as the frontman for crisis-management policies driven out of Berlin that are spreading economic pain as debt turmoil reignites.
Spain’s 41 billion-euro ($54 billion) rescue of lenders, prompted by record losses at Bankia, won’t spell the end of troubles for the nation’s financial industry as the economy remains mired in recession.
One can accuse Germany’s finance minister of many things, but not of hiding his views. By saying that a Greek default is possible because the rest of the euro area can now bear it, Wolfgang Schaeuble has simply admitted that the strategy adopted since late 2009 has been designed to protect Germany, not to help Greece. By further suggesting that elections be delayed in Greece and that technocrats replace the remaining politicians holding ministerial jobs, Herr Schaeuble has shown how little he cares about elementary democratic principles.
Charles Wyplosz , the director of the International Centre for Monetary and Banking Studies in Geneva, said political interference has undermined European bank stress tests and he doesn’t have faith in the results.
Private investors in Greek bonds will need to take losses ranging from 40 percent to 60 percent, according to Charles Wyplosz, director of the Geneva-based International Center for Money and Banking Studies.
The U.K.’s Financial Services Authority today fined UBS AG 29.7 million pounds ($47.6 million) because of former trader Kweku Adoboli’s $2.3 billion trading loss. The FSA said the loss revealed serious weaknesses in management systems and internal controls at the largest Swiss bank.