Growing Risks: Government Bond Holdings Could Burden Banks

Growing Risks: Government Bond Holdings Could Burden Banks

SPIEGEL ONLINE - November 25, 2013

European banks hold increasingly large shares of government bonds as a result of the debt crisis. If those states default and can no longer service their debt, it could lead to massive losses. Germany's Bundesbank is pushing for new rules at the ECB. By Martin Hesse and Christoph Pauly more... Comment ]

EU Apathy: Leaders Fail to Make Progress at Summit

EU Apathy: Leaders Fail to Make Progress at Summit

SPIEGEL ONLINE - October 25, 2013

This week's European Council summit was sidelined by new accusations of US spying in Europe. But despite the distraction, it's clear EU leaders have deferred plans for greater integration, and lack the political will to address pressing concerns like migration. By Christopher Alessi more... Comment ]

'Over-Banked': ECB Tests Set to Reveal German System Flaws

'Over-Banked': ECB Tests Set to Reveal German System Flaws

SPIEGEL ONLINE - October 23, 2013

The European Central Bank's upcoming review of the euro zone's largest banks could expose weaknesses in the German banking sector. It may also reveal Germany's political role in limiting the scope and efficacy of the Continent's nascent banking union. By Christopher Alessi more... Comment ]

'Last Opportunity': ECB and Politicians at Odds Over Stress Tests

'Last Opportunity': ECB and Politicians at Odds Over Stress Tests

SPIEGEL ONLINE - September 30, 2013

The European Central Bank wants to impose rigid tests on financial companies in the euro zone before it assumes its new supervisory role. But even before the tests are set to begin, the ECB is already tangling with policymakers. By Martin Hesse and Christoph Pauly more... Comment ]

Creative Capital: Commerzbank Seeks To Avoid Nationalization

Creative Capital: Commerzbank Seeks To Avoid Nationalization

SPIEGEL ONLINE - January 16, 2012

Germany's second largest bank is looking at other options to increase its capital by 5.3 billion euros in order to avoid another government bailout. This week, the bank must submit plans to increase its capital to the European Banking Authority. more...

Europe's Top Bank Regulator: 'The Crisis Has Reached a Systemic Level'

Europe's Top Bank Regulator: 'The Crisis Has Reached a Systemic Level'

SPIEGEL ONLINE - December 12, 2011

A stress test performed on European banks last week found a capital shortfall of some 115 billion euros. In a SPIEGEL interview, European Banking Authority head Andrea Enria defends the decision to perform the stress test and discusses the huge challenges facing the European banking sector. more... Comment ]

Stress Test Results: European Banks Need 115 Billion Euros

Stress Test Results: European Banks Need 115 Billion Euros

SPIEGEL ONLINE - December 08, 2011

The European Banking Authority has determined that banks in Europe need an additional 115 billion euros to conform with new capital ratio requirements. The sum is higher than an October estimate, largely because of capital deficits found at banks in Germany. more...

Opinion: Euro Zone Should Look to Brady Plan to Solve Its Crisis

Opinion: Euro Zone Should Look to Brady Plan to Solve Its Crisis

SPIEGEL ONLINE - April 14, 2011

After the Latin American debt crisis in the 1980s, US regulators lied about the health of American banks until they were in a position to take a voluntary haircut on their bad loans. The Brady Plan holds important lessons for euro-zone governments looking for a way out of the current debt crisis. By Jacob Funk Kirkegaard more...

New Euro Threat Emerges: Irish Banks Fail Stress Tests

New Euro Threat Emerges: Irish Banks Fail Stress Tests

SPIEGEL ONLINE - April 01, 2011

Ireland's banks performed so badly in the latest EU stress tests that the country's last remaining major independent financial institutions will likely be nationalized. The entire banking sector is set to radically shrink, but that might carry significant risks for Ireland's European partners. By Carsten Volkery more... Comment ]

Stress Tests in the EU: The Triumph of the Financial World's Lobbyists

Stress Tests in the EU: The Triumph of the Financial World's Lobbyists

SPIEGEL ONLINE - July 26, 2010

The European stress tests failed to reveal much about the true state of the banks scrutinized. In order to prevent future crises, politicians in the EU are pushing for tough new financial sector regulations. But the financial lobby is extremely powerful. By Hans-Jürgen Schlamp in Brussels more...

A Meaningless Report: Europe's Stress-Free Stress Test Fails to Make the Grade

A Meaningless Report: Europe's Stress-Free Stress Test Fails to Make the Grade

SPIEGEL ONLINE - July 26, 2010

The Europe-wide banking stress tests published on Friday returned the expected -- and desired -- result. But, as many economic experts see it, the test was useless because it was too simple, too easy to cheat on and tested the wrong things. more...