by Bill McBride on 9/17/2011 06:55:00 PM
Saturday, September 17, 2011
Nothing was resolved. It sounds like there will be another round of stress tests including exposure to sovereign debt. About time!
• From the WSJ: EU Ends Talks With Little Progress in Overcoming Divisions
At the end of two days of informal talks here, the finance ministers made little progress in overcoming divisions ... they continued to spar over a range of issues, including whether to impose a financial transactions tax, boost the euro zone's rescue fund and how to address Finland's demands for collateral in return for its contribution to Greece's bailout.• From Bloomberg: Greece’s Premier Cancels U.S. Trip Before ‘Critical’ Week (ht jb)
Michel Barnier, the EU's commissioner for financial regulation, said that while the 2011 tests were an improvement over last year's, "we must also acknowledge that the tests did not restore the credibility in banks strength in the way we would have hoped."
The tests should be strengthened, he said. "In particular, I think we need to reconsider how we treat sovereign exposure and liquidity, and further improve coordination between supervisors," Mr. Barnier said.
Greek Prime Minister George Papandreou canceled a U.S. visit that was to begin tomorrow, saying he needed to remain in the country for a “critical” seven days in its effort to avert a bond default.• From the Irish Times: €10bn interest-rate cuts on State bailout signed off
“The coming week is particularly critical for the implementation of the July 21 decisions in the euro area and the initiatives which the country must undertake,” said a statement e-mailed today from Papandreou’s office in Athens.
EU and International Monetary Fund inspectors will hold a conference call with Finance Minister Evangelos Venizelos to resume and accelerate their review on Sept. 19
EU FINANCE ministers have signed off on a package of interest rate cuts on Ireland’s bailout which will benefit the State by up to € 10 billion during the course of the rescue.Earlier:
• Summary for Week ending September 16th
• Schedule for Week of Sept 18th
Posted by Bill McBride on 9/17/2011 06:55:00 PM