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The European Banking Authority keeps the screws down, turning the temporary 9% Tier 1 capital...

The European Banking Authority keeps the screws down, turning the temporary 9% Tier 1 capital ratio demanded of banks into something more permanent. "We want to constrain banks' actions in the coming years," says EBA chair Andrea Enria. Sounds like a recipe for economic growth.
Comments (3)
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    "Sounds like a recipe for economic growth"...yes it does..good ole fashioned economic growth.....if you think you need synthetic derivatives to make the world turn....you are wrong...that is the casino...we do not need the casino...nor do we need banks as big as they are...they could be cut by 50% in my book....
    3 Oct 2012, 03:33 PM Reply Like
  • credit_man
    , contributor
    Comments (178) | Send Message
     
    problem being that capital ratio constraints has proven weak solution in the past as derivative innovation will always allow bank to turn rules
    more easely on off baance sheet exposure vs on balance sheet(loans)
    your view of casino finance is indeed shared by many but little naive.....
    3 Oct 2012, 03:49 PM Reply Like
  • Remyngton
    , contributor
    Comments (354) | Send Message
     
    EU pols never miss a chance to miss a chance
    3 Oct 2012, 04:18 PM Reply Like
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