"The crisis has laid bare structural shortcomings [that] require structural solutions,"...

|By:, SA News Editor

"The crisis has laid bare structural shortcomings [that] require structural solutions," Bundesbank head Jens Weidmann tells economists in southern France, adding that "monetary policy … cannot solve the crisis." Weidmann also says "sovereign default [should be] possible without bringing down the financial system," and suggests that allowing banks to assign a zero risk-weighting to all sovereign debt regardless of its origin reinforces the pernicious link between banks and their governments.