Senior unsecured creditors in European Union banks may be forced to take losses before public money can be injected to prop up a lender, as lawmakers vow to prevent a recurrence of the bailouts that followed the collapse of Lehman Brothers Holdings Inc.
German Finance Minister Wolfgang Schaeuble said Russia’s display of force on Crimea will be a passing phenomenon and urged the U.S. to work more with its allies to maintain the allure of American “soft power.”
German Finance Minister Wolfgang Schaeuble said Group of Seven members will respond quickly to a letter by Russian President Vladimir Putin to 18 European leaders in which he said Russia’s OAO Gazprom would halt shipments to Ukraine if it continued to fall behind in payments.
Bundesbank President Jens Weidmann said the euro area’s risk of a broad-based decline in consumer prices is low and any unconventional European Central Bank measures to avoid deflation would have to meet many conditions.
German Finance Minister Wolfgang Schaeuble and state officials today agreed on a plan to allow tax relief on the interest banks will pay on the extra capital they need in the future to meet stricter leverage standards.
German Finance Minister Wolfgang Schaeuble said he’s tired of calls to sacrifice deficit reduction for economic growth, just as U.S. Treasury Secretary Jacob J. Lew pressed Germany to boost domestic demand.