Tag Archive for European Stability

Euro firewall insufficient after Spain, says IIF – CNN Money

The recent €100 billion bailout of Spain’s banks will leave Europe’s financial rescue fund without enough money to bail out another big economy, an international banking group warned on Sunday. “[A]fter committing €100 billion for the Spanish saving banks, the Eurogroup’s rescue funds, as currently authorized and structured, will have sufficient funds to help a…

Germany comes round to idea of soft bailout for Spanish banks | In English | EL PAÍS

Germany is beginning to take on board Spain’s idea that a bailout for the Spanish banking system should not be on the same onerous terms as those imposed on Greece, Ireland and Portugal in exchange for their full-scale rescue programs, German sources said Wednesday. Although Germany remains opposed to Spain’s demands that banks be allowed…

Cleaning up the mess: Bank resolution in a systemic crisis | vox – Research-based policy analysis and commentary from leading economists

The diabolic loop between the solvency of the banking system and the sovereign fiscal position is now apparent (Lane 2012). In Greece, it is the insolvency of the government that has sunk the banks; In Spain, the banks are sinking the government. What is common in both countries is that savers are running away when…