In an odd escalation over the Grexit fiasco, where Greece is now expected to provide yet another detailed reform proposal today by midnight at the very latest, it was the one man whose decision will make or break the Eurozone when (if) he decides to impose even more ELA collateral haircuts (or yank ELA entirely) forcing Greece to Grexit by imposing its own currency (since there is no legal mechanism to kick a nation out of the new Berlin Wall) that made
FRANKFURT — The European Central Bank left interest rates unchanged on Thursday, and markets turned their attention to ECB chief Mario Draghi’s news conference for any signs a eurozone recovery will affect the bank’s policy stance.
Abandoning its tradition of never pre-committing on future moves, the ECB said in July it would keep its rates at current or lower levels for an “extended period” — its first use of forward guidance.
European Central Bank (ECB) boss Mario Draghi is currently speaking at the European Parliament, being quizzed by elected members. If you're that way inclined, you can watch the whole thing here. Investors are looking out for new comments on quantitative easing (QE), the health of the eurozone economy, and most importantly, Greece.
WASHINGTON: The world's financial leaders see a number of threats facing a global economy still on an uneven road to recovery with US and European officials worrying that Greece will default on its debt. The finance ministers and central bank governors ended three days of meetings in Washington determined to work toward ``a more robust, balanced and job-rich economy'' while admitting there are risks in reaching that objective, the steering committee of the International Monetary Fund said in its communique Saturday.
BRUSSELS – New European Central Bank powers to oversee eurozone banks will help restore confidence in the sector and revive interbank lending, its president, Mario Draghi, said on Monday.
European ministers clinched a deal last week to give the ECB powers to supervise the currency bloc’s banks from March 2014, taking the first step in a new phase of integration to help underpin the euro.
The endless Italian bailout story that keeps on giving, has just given some more. It turns out Italy's insolvent Banca dei Monte Paschi, which has been in the headlines for the past month due to its role as political leverage against the frontrunning Bersani bloc, and which has been bailed out openly so many times in the past 4 years we have lost track, and whose cesspool of a balance sheet disclose one after another previously secret derivative deal on an almost daily basis, can now add a previously unannounced bailout by the Bank of Italy to its list of recent historical escapades.
When it comes to stress tests, especially for European banks, the one thing history suggests is the tests will be essentially stress-free, by design. Why should this time be any different?
Nonetheless, European Central Bank President, Mario Draghi Says ECB Won’t Hesitate to Fail Banks in Stress Tests.
For those of you who do not speak Draghize I offer these translations.
Editor’s Note: The following post comes to us from Eilis Ferran, Professor of Company and Securities Law, and Valia SG Babis, both at University of Cambridge.
Euro Area banks need credible financial backstops.