Germany's Deutsche Bank had the highest potential capital shortfall, 19 billion Euros in a study of 51 European banks using U.S. Federal Reserve stress test methods, German economic research institute ZEW said. Read full article
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“The USA have drawn their own conclusions and implemented comprehensive measures for the recapitalization of the American banking sector as early as in 2008,” Steffen said. “A lack of political will means that this has still not happened in Europe,” he added.Aug 10th, 2016 - 01:04 pm - Link - Report abuse 0
ZEW Finance Professor Sascha Steffen has obviously got a short term memory about 2008 and who caused the American driven global money crisis.
He should watch the film 'Too Big To Fail' which, using the records of the time, clearly shows it was the brainless Bush junior that removed all the safety legislation that was enabled after the Wall Street crash at the insistence of the big banks.
The banks soon did deals to absorb 'gambling' investment banks into their conventional banking side making them massive financial businesses, literally too big to fail without ruining the country and every other that used the US Dollar.
Then, to ensure quarterly profits ALWAYS grew, because a fall would bust open the deceit they were perpetrating on everybody, they started with the 'home for everybody' with stupidly low initial interest rates on the loans which rapidly became unsupportable by the 'home owners' when the lapsed interest was added to the real interest. So a lot of blacks, hitherto kept out of the market due to poor finances, were suckered into foreclosure.
Then, one by one, the big banks went broke and the government had to act to the tune of U$D700 TRILLION. But it wasn't a bailout, that would have been impossible to get past Congress because it would have been seen as government ownership like the Ruskies! NO, it was called a loan for the banks to use to loan in turn to those WHO COULD AFFORD IT!
Now is there anybody stupid enough to believe the banks would actually loan the money out. Only Bernanke and Paulson. The banks NEVER loaned the money out and the market recovered after two years without it. The banks did eventually pay the money back.
Stefan needs to be watched very carefully.