urge to rule" H.L. Mencken
Thursday, 13 October 2011
by Ellen Brown
In order to win back this important market share, it has become a prerogative to destroy public banking in Germany completely. This unpopular move could never come from the German government itself, so that’s why the [European] Commission is being employed for this dirty job.
The reform also calls for a shift to focus on key growth sectors such as agriculture and energy, but the non-governmental group ActionAid said this would benefit EU companies while it would have "questionable impact" for the poor.
"We must keep pace with changing realities in the world and adapt the way we fight poverty as a result," said EU development commissioner Andris Piebalgs
"The urge to save humanity is almost always a false front for the
* Other top banks also face hefty recapitalisation under EU plan
* Losses on bonds, recaps could hit fragile economies
* Greece banks could endure loss on bonds of up to 30 pct
* Stoxx 600 bank index down 3.7 pct, Unicredit down 12 pct
By Philipp Halstrick and John O'Donnell
FRANKFURT/BRUSSELS, Oct 13 (Reuters) -
European banks could get up to six months to strengthen their capital under plans aimed at halting the region's debt crisis, giving them time to raise funds privately in the hope of averting another damaging credit crunch.
EU officials said on Thursday that weak banks may get this time to bolster their balance sheets after a rapid health check concluded.
Euro zone leaders are insisting that banks recapitalise, in an attempt to halt the euro zone crisis and shore up investor confidence.
"A three- to six-month deadline is being considered," said one EU official, speaking on condition of anonymity, saying that banks were being encouraged to tap private investors or sell assets rather than turn to governments. "No decision has been taken."
The plan means Deutsche Bank and other top European banks could have to raise billions of euros to meet a 9 percent core capital target and withstand hefty losses on sovereign bonds.
The European Banking Authority, which is assessing banks' capital needs, is likely to mark down the value of banks' holdings of sovereign debt to market value and require lenders to hold a 9 percent core Tier 1 capital ratio, an EU source told Reuters.
Deutsche Bank, Germany's flagship lender, would need 9 billion euros in fresh equity to reach that level, two people with direct knowledge of the bank's finances said on Thursday.
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