The European financial crisis is far from over. The European Central Bank is calling for greater amounts of depositor insurance to help cut back on bank runs. Without it, the ECB says, the financial chaos will spread virally.
A couple of banking system concerns
A ton of European speculators are putting cash into Austrian and French bonds that are at a low mark for 10-year yields. The euro has deflated in value against the United States dollar with a two year low at this point because everyone is worried. There is a ton of concern that Greece will not survive and that Spain will have a failing banking system.
The AP explained that Spanish banks moved a ton of cash in March faster than it has ever been seen since record keeping began in 1990. The fourth-largest bank, Bankia, lost a lot due to a real estate crash, which brought on it to be nationalized. Spanish banks have lost $82 billion in recent months in capital.
No bailout for you
Christine Lagarde is the IMF Managing Director. She explained that there are no plans for a Spanish bank bailout. The rumor started because it might help defend Europe's economy a little bit.
"There is no such plan. We have not received any request to that effect and we are not doing any work in relation to any financial support," said Lagarde.
A referendum in Ireland would make it easier for the European Union to offer aid to Ireland voters, according to the New York Times. There is also an election in Greece on June 17 that will go a long ways towards to euro zone for the nation. Right now, the bank bailout favoring New Democracy party is beating the SYRIZA leftists, which is a good thing for people who want bank bailouts.
Looking for clarity
According to Mario Draghi, European Central Bank President, nations have to be put in order with the Euro quickly by European leaders. Not every person in the euro zone will get help and economic policy from the ECB.
"We will avoid bank runs from solvent banks. Depositors' money will be protected if we build this European guaranteed deposit fund. This will assure that depositors will be protected," said Draghi.
Germany is well-known as a paymaster of the European Union and does not like the idea of a joint deposit guarantee for depositors that the ECB is pushing for. It is something German Chancellor Merkel is not sure about. Germany has not been willing to put taxpayer dollars into the union in the past.
"There are integration steps which will require treaty changes. We are not at that stage today but nevertheless there are no taboos," she said at a news conference.
Stemming the tide
Draghi testified before European Union lawmakers that the European financial crisis has set financiers throughout the euro zone on edge, but that warning is not what is required at this time.
"I urge all governments to keep this in mind, because it is better to err by too much in the very beginning rather than by too little," he said, citing the recent failures of Spain's Bankia and the French-Belgian bank Dexia.
A couple of banking system concerns
A ton of European speculators are putting cash into Austrian and French bonds that are at a low mark for 10-year yields. The euro has deflated in value against the United States dollar with a two year low at this point because everyone is worried. There is a ton of concern that Greece will not survive and that Spain will have a failing banking system.
The AP explained that Spanish banks moved a ton of cash in March faster than it has ever been seen since record keeping began in 1990. The fourth-largest bank, Bankia, lost a lot due to a real estate crash, which brought on it to be nationalized. Spanish banks have lost $82 billion in recent months in capital.
No bailout for you
Christine Lagarde is the IMF Managing Director. She explained that there are no plans for a Spanish bank bailout. The rumor started because it might help defend Europe's economy a little bit.
"There is no such plan. We have not received any request to that effect and we are not doing any work in relation to any financial support," said Lagarde.
A referendum in Ireland would make it easier for the European Union to offer aid to Ireland voters, according to the New York Times. There is also an election in Greece on June 17 that will go a long ways towards to euro zone for the nation. Right now, the bank bailout favoring New Democracy party is beating the SYRIZA leftists, which is a good thing for people who want bank bailouts.
Looking for clarity
According to Mario Draghi, European Central Bank President, nations have to be put in order with the Euro quickly by European leaders. Not every person in the euro zone will get help and economic policy from the ECB.
"We will avoid bank runs from solvent banks. Depositors' money will be protected if we build this European guaranteed deposit fund. This will assure that depositors will be protected," said Draghi.
Germany is well-known as a paymaster of the European Union and does not like the idea of a joint deposit guarantee for depositors that the ECB is pushing for. It is something German Chancellor Merkel is not sure about. Germany has not been willing to put taxpayer dollars into the union in the past.
"There are integration steps which will require treaty changes. We are not at that stage today but nevertheless there are no taboos," she said at a news conference.
Stemming the tide
Draghi testified before European Union lawmakers that the European financial crisis has set financiers throughout the euro zone on edge, but that warning is not what is required at this time.
"I urge all governments to keep this in mind, because it is better to err by too much in the very beginning rather than by too little," he said, citing the recent failures of Spain's Bankia and the French-Belgian bank Dexia.
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