"ECB is more leveraged than the average hedge fund"
Peter Jungen, who is the President of SME Union, the pro business wing of the European People's Party (EPP), highlighted at an EPP debate that the ECB is more leveraged than the average hedge fund.
He said the ECB is leveraged 21 times, and the Eurosystem 24 times, while the average hedge fund is only leveraged three to four times.
He added, "A fall in assets of 4.2% would wipe out the reserves of the ECB balance sheet, which begs the question: who will then bail out the ECB?" He further said that if the ECB applied mark-to-market accounting, it would already be insolvent.
SME Union
Press Releases
SME-UNION President Peter Jungen warns of currency war ( pdf )
08-10-2010
SME-Union President Peter Jungen opening speaker at the Aspen Conference “The way ahead for economic Governance in Europe.” ( pdf )
07-10-2010
SME Union President Peter Jungen invited to the IMF Annual Meeting and the “Group of Thirty”: Substantial Reform of the IMF in best interest of EU! ( pdf )
06-10-2010
SME Union President: Congratulations to Prime Minister Valdis Dombrowskis ( pdf )
05-10-2010
SME-UNION President Peter Jungen: Structural changes at the IMF necessary ( pdf )
05-10-2010
Global Economic Symposium 2010 in Istanbul under the patronage of President Barroso SME-Union President Peter Jungen invited as a speaker ( pdf )
27-09-2010
SME Union President Peter Jungen urges Ministers of Finance to adopt a more stringent framework for the European Monetary Union: “Strict resolution regime is decisive for the future of the Euro.” ( pdf )
07-09-2010
SME-Union President Peter Jungen at the European Forum Alpbach: Public Debts will damage growth in Europe ( pdf )
06-09-2010
SME UNION President Peter Jungen rejects proposal for European taxes ( pdf )
12-08-2010
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