The biggest banks in Denmark’s $550 billion mortgage market say hedge funds looking for ways to bet against the industry are setting themselves up for losses.
Denmark is in talks with some of Europe’s most powerful governments to ensure a plan to give its covered bonds second-class liquidity status is dismissed.
Danish Economy Margrethe Vestager said access to short-term public-sector financing for failing banks will drive Denmark’s decision on whether to join the euro area’s banking union.
The European Commission said it will take into account the particular strengths of Denmark’s covered bond market as it reviews a proposal by Europe’s bank regulator to give the securities second-class liquidity status.
Danish Economy Minister Margrethe Vestager said the European Union should press ahead with plans for a joint mechanism to handle failing banks, rather than delay it as Germany would like.
Danish Economy Minister Margrethe Vestager said European Union officials haven’t yet resolved how to include non-euro nations in financial supervision decision- making at the European Central Bank.
Denmark is ready to do for its two- centuries-old mortgage system what European Central Bank President Mario Draghi has done for the euro: whatever it takes.
Denmark’s government said this month’s budget proposal won’t include a new stimulus plan, arguing additional aid can’t repair structural flaws that are holding back Scandinavia’s weakest economy.
A rebound in Denmark’s housing market shows the recovery the government has been waiting for is now underway, Economy Minister Margrethe Vestager said.
Denmark is urging the European Commission to ignore a recommendation by its banking authority that the Nordic nation says would hobble the world’s largest mortgage finance system per capita.
"It underscores the traditional view that no matter who you are, investors should see the entire picture and make their own decisions when it comes to deciding where to invest."
- Margrethe Vestager on Feb 26, 2014