Governments will soon not be able to help their banks
Satyajit Das, derivatives expert and the author of Extreme Money: The Masters of the Universe and the Cult of Risk, feels that there may not be enough money for rescues. December 08, 2011 | Satyajit DasBanks globally, especially European banks, are seen as increasingly vulnerable to European debt problems. The total exposure of the global banking system to Greece, Ireland, Portugal, Spain and Italy is over $2 trillion. French and Germany banks have very large exposures. If there are defaults, then these banks will need capital, most likely from their sovereigns. As the sovereigns are increasingly themselves under pressure, their ability to support the banking system is unclear. Banks are curtailing lending and trying to shed assets to raise capital and alleviate funding pressure choking of the supply of credit. Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Capital & Strategic Issues, Government Finance, Risk and RegulationCapital & Strategic Issues,Government Finance,Risk and Regulation, Capital & Strategic Issues,Government Finance,Risk and Regulation, , Capital Marketscapital, Capital Markets, Keywords:Euro Crisis, European Central Bank, Cost Of Capital, Budget Deficit Euro Crisis, European Central Bank, Cost of Capital, Budget Deficit
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