3 Year Old Party Rhyme

Bradley 2011 Standard

An interesting point of view about Crude Oil performances

Pain On Right Side Of Groin Pregnant

Commission Seeks Views on possible EU framework to deal with future bank failures

you want to go into a failure driven by different reality as I understand it not just on this article ... perhaps by transferring much of the garbage to small savers, at least this makes me think like "final solution" of this crisis in order to reduce the debt

----------- ------------------

Following the publication of a Communication on 20 October 2010 on a European crisis management framework for the financial sector (see IP/10/1353 ), the European Commission has today launched a consultation on technical details underpinning that framework. Today's consultation should be read in conjunction with that Communication. The Commission intends to come forward with a legislative proposal for a comprehensive framework for dealing with failing banks before the Summer of 2011. The deadline for contributions to this consultation is 3 March 2011.

The possible options set out in this consultation would constitute a significant step for the EU in delivering the commitment made at the G20 summit in June 2010, by ensuring that authorities across the EU have the powers and tools to restructure or resolve (the process to allow for the managed failure of the financial institution) all types of financial institution in crisis, without taxpayers ultimately bearing the burden. They are also consistent with the principles for ensuring that resolution is a viable option for systemically important financial institutions that are being developed by the Financial Stability Board. This Consultation focuses on measures for banks and investment firms. The Commission will report by the end of 2011 on appropriate measures for other kinds of financial institution, including insurers and Central Counterparties.

Currently, there are very few rules at EU level which determine which actions can and should be taken by authorities when banks fail and, for reasons of financial stability, cannot be wound up under ordinary insolvency rules. This consultation seeks input on the technical details underpinning the policy issues identified in the Communication of 20 October 2010. These include

• Common and effective tools and powers to deal with failing banks at an early stage , and to minimise costs for taxpayers, for example:

• preparatory and preventative measures such as a requirement for recovery and resolution plans ('living wills') and powers for authorities to require banks to make changes to their structure or business organisation where such changes are necessary to ensure that the institution can be resolved, under the regime. These powers would be an important element in tackling banks that have been deemed too big, complex or interconnected to fail. Indeed, the objective is to ensure that the resolution tools can be used on all banks, irrespective of their size, complexity or systemic importance;

• powers for supervisors to take early action to remedy problems before they get out of hand such as the power to change the managers; and

• resolution tools which empower authorities to take the necessary action, where bank failure cannot be avoided, to manage that failure in an orderly way such as powers to transfer assets and liabilities of a failing bank to another institution or to a bridge bank, and to write down debt of a failing bank to strengthen its financial position and allow it to continue as a going concern subject to appropriate restructuring.

The overriding objective will be to ensure that banks can be resolved in ways which minimise the risks of contagion and ensure continuity of essential financial services, including continuous access to deposits for insured depositors. The framework should provide a credible alternative to the expensive bank bail-outs which have characterised the recent crisis. The consultation asks stakeholders their views on the effectiveness of these possible powers and tools.

• Effective arrangements which ensure that authorities coordinate and cooperate as fully as possible in order to minimise any harmful effects of a cross-border bank failure. It is suggested to build on existing supervisory colleges, expanding them to include resolution authorities for the purposes of crisis preparation and management. The Consultation seeks views from stakeholders on the most appropriate framework to ensure an effective resolution of cross border groups.

• Fair burden sharing by means of financing mechanisms which avoid use of taxpayer funds. This might include possible mechanisms to write down appropriate classes of the debt of a failing bank to ensure that its creditors bear losses. Any such proposals would not apply to existing bank debt currently in issue . It also includes setting up resolution funds financed by bank contributions. In particular the Consultation seeks views on how a mechanism for debt write down (or 'bail-in') might be best achieved, and on the feasibility of merging deposit guarantee funds with resolution funds.

The Commission welcomes responses to the policy objectives and the questions raised in this paper by 3 March 2011 . Responses should be sent to the following email address: markt-crisis-management@ec.europa.eu

Next steps:

The technical details and the responses received will contribute significantly to the development of draft legislation for a comprehensive crisis management framework for banks and investment firms to be tabled before Summer 2011.

Finally, it's the Commission's Communication of 20 October 2010 set out a roadmap of measures which will be considered in the longer term with a view to delivering a more integrated resolution framework better suited to integrated EU banking groups (see MEMO/10/506 ). Specifically, the Commission plans to examine the need for further harmonisation of bank insolvency regimes with a report by the end of 2012 and, alongside the review of the European Banking Authority in 2014, will assess how a more integrated framework for the resolution of cross-border groups might best be achieved. Those "initiatives are not covered in this technical consultation, But Would Be subject to a separate consultation.

Dune Buggy Plans Dimensions

food for thought ... UK and EU PIIGS

On the head of the British weighs a debt of 16 trillion dollars. The said John Hawksworth, chief economist at PwC, the largest consulting firms in the world. What economic system upon which the UK is a bomb ... of enormous power, designed to explode when the credit terms (interest rates) will end inevitably get worse. By 2015, revealed in recent days, the total debt of the UK share of the terrifying sfonderà 10 trillion (ten thousand billion) pounds. At the current exchange rate is U.S. $ 16 trillion, four times the GDP of Japan. A value than the entire economy of the EU or the United States.

"A cluster of gigantic proportions - writes Horses - has grown enormously over the past two decades, when the race to credit has picked up like no other." In 1987, PwC has shown, this total debt was worth around 200% of GDP. Today, with a total value of 7.5 trillion pounds, the ratio rose to 540% and the gap is set to expand. When in 2015 the total share will touch the dreaded 10, PwC states, with GDP per likely will be even less than 2 trillion

-----------------------

According to an analyst at JPMorgan, a cut of "only" 20 per cent of the redemption value of bonds Greek, Irish, English and Portuguese lead to the elimination of the capital of French banks. It 's always more dramatically ... make clear that what should be done (hitting senior bondholders) would lead to the collapse of the European banking system. Another fact that, rather than talking, screams, the average interest rate on the loan that Ireland will pay the joint EU and the IMF is 5.8 per cent overall. From 2014 the service of this debt will be approximately 25 percent of revenue of the country. According to Moody's historical data, the percentage of debt service on total revenue that is causing the default is 22 percent.

plan "aid" for Ireland is simply unworkable.