BERLIN -- There is a risk of a credit squeeze in Europe as banks raise cash to meet new core-capital thresholds, warned Ewald Nowotny, a member of the European Central Bank's governing council, on Thursday. EU monetary affairs commissioner Olli Rehn is to be given extra authority to supervise national fiscal policies, as the commission moves quickly to centralise economic governance powers in Brussels.
"Naturally, there is a danger" of a credit squeeze, he said in an interview with Austrian state television. Nowotny is also head of Austria's central bank
http://www.foxbusiness.com/industries/2011/10/27/ecbs-nowotny-sees-risk-credit-squeeze/
Nowotny Says Consensus That Bank Deregulation ‘Went Too Far’
Oct. 25 (Bloomberg) -- European Central Bank Governing Council member Ewald Nowotny said there was a consensus in Europe that deregulation of financial markets was excessive.
“There is an absolute consensus that deregulation went too far,” Nowotny said in a lecture at the Vienna University for Economics and Business today without elaborating.
Should banks not be able to get funds on capital markets, “then it is necessary for the public sector to become involved,” Nowotny also said. “On the European level there is a wide consensus that such an involvement would be in return for common shares” rather than non-voting capital, he said, adding that the U.S., the U.K. and Sweden had already used this model.
http://www.businessweek.com/news/2011-10-25/nowotny-says-consensus-that-bank-deregulation-went-too-far-.html
Bank recapitalisation deadline 'very short': Nowotny
http://www.brecorder.com/business-a-finance/banking-a-finance/33372-bank-recapitalisation-deadline-very-short-nowotny.html
"[Rehn] will become deputy-head of the commission for economic and monetary affairs and the euro," and will have "additional working instruments," European Commission chief Jose Manuel Barroso told the European parliament on Thursday (27 October).
"This is the best way to guarantee independence, objectivity and efficiency in the exercise of the Commission's responsibility of coordination, surveillance and enforcement in the area of economic governance of the union and of the euro area in particular,” said Barroso.
It is also a way of making sure that economic governance stays within the hands of the commission, amid fears that eurozone member states would club together and make their own rules and institutions.
http://euobserver.com/19/114105
EU Rehn: Euro-Zone Leaders Ready For Budget Checks, Debt Brake
"They are ready to introduce debt brakes into national legislation and call for prior examination of draft national budgets" at European Union level for countries that violate the bloc's fiscal rules, Rehn said in a speech in Berlin.
The EU will make "full use" of stronger economic governance rules that enter into force in December, including sanctions against states that break the bloc's fiscal rules, Rehn added.
"Rest assured, I will make full use of all these new instruments from Day One," he said
http://tinyurl.com/3mqb6yq
Friday, 28 October 2011
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