Britannia Radio

Europe vs. the ECB: A high-stakes game of chicken

http://www.washingtonpost.com/business/economy/europe-vs-the-ecb-a-high-stakes-game-of-chicken/2011/10/06/gIQAO2X8PL_story.html
Lehman Catastrophic Moment Invoked as EU Leaders Press for Crisis Solution
http://www.bloomberg.com/news/2011-10-13/lehman-catastrophic-moment-invoked-as-eu-leaders-press-for-crisis-solution.html

Father of the Euro, Robert Mundell weighs in:

Mundell Says French Banks at Forefront of Debt Crisis
http://www.washingtonpost.com/business/mundell-says-french-banks-at-forefront-of-debt-crisis/2011/10/06/gIQAEgKpPL_video.html

Rabbitte confirms €2bn asset sales

The Government will have to raise more than €2bn through the sale of state assets under the EU-IMF rescue deal, Communications, Energy and Natural Resources Minister Pat Rabbitte has confirmed.

The figure laid down in the Programme for Government is €2bn, but the EU and the IMF have been pressuring Ireland to raise up to €5bn through the sale of stakes in semi-states or state-sponsored bodies such as the ESB, Aer Lingus and An Coillte. "In the latest version of the memorandum of understanding the commitment is to an ambitious programme of disposal," Mr Rabbitte told reporters in Brussels yesterday.
"I don't think ambitious means €5bn, but I agree it doesn't mean €2bn either."
http://www.independent.ie/business/irish/rabbitte-confirms-euro2bn-asset-sales-2906311.html

German bankers blast EU capital plan

http://www.theaustralian.com.au/business/world/german-bankers-blast-eu-capital-plan/story-e6frg90o-1226166501251

Banks need billions – from where?

The question is how much capital regulators will now demand and in what time-frame. Morgan Stanley estimated that in a worst-case scenario, Deutsche itself could need €7.6bn in extra cash to pass new stress tests, while Barclays could need €11bn and Unicredit a whopping €12.5bn. That means one of two things: tapping investors or ditching assets as fast as possible.
Investors are reluctant to shell out. But Europe is already awash with “non-core” assets that banks are reluctant to sell for large losses.
The fact is, however, that something’s got to give.
http://www.cityam.com/news-and-analysis/bottom-line/banks-need-billions-where

EU banks mustn’t shrink their way out of recapitalizations

The banking industry is deleveraging – and it needs to given the binge of previous years.
http://www.theglobeandmail.com/globe-investor/investment-ideas/breaking-views/eu-banks-mustnt-shrink-their-way-out-of-recapitalizations/article2199991/