SHANGHAI (Reuters) - Raising capital has become "fundamentally impossible" for European banks, the chairman and CEO of France's Societe Generale said on Friday, in a stark reflection of the concern over the health of banks in the region.
SHANGHAI (Reuters) - Raising capital has become "fundamentally impossible" for European banks, the chairman and CEO of France's Societe Generale said on Friday, in a stark reflection of the concern over the health of banks in the region. "Investors lack confidence," Frederic Oudeahe told a financial forum in Shanghai. "Raising capital today is fundamentally impossible." Europe's widening debt crisis has left many of the continent's banks strapped for cash and dependent on the European Central Bank. ...
After years of waiting, a major trade agreement between the EU and the U.S. – the world’s two biggest trading partners – is finally on the negotiating table. Aimed at expanding commerce by unifying regulations and cutting tariffs, the Trans-Atlantic Trade and Investment Partnership (TTIP) negotiations come at a time when Europe is only just emerging from recession and the U.S. continues to grapple with its own aggravatingly slow recovery. If the two sides agree on an ambitious deal, it could provide a major boost for both economies and create millions of new jobs.
The jobs report is on Friday. On Friday morning, the BLS will release its September report on nonfarm payrolls. Last month, the jobs report disappointed, with nonfarm payrolls gains in August coming in at 142,000, well below expectations for 230,000.
It is in the “common interest” for Europe to develop more ties between countries in the region, including Russia, says Frédéric Oudéa, the chief executive of French bank Société Générale, who next month takes on the added job of president of the influential European Banking Federation.
“We look at the long-term and Russia is part of Europe,” Mr. Oudéa, whose bank has substantial operations in the country, which is just a three-hour plane ride from France, told the Financial Post on Thursday.
Stress tests conducted by the European Central Bank (ECB) on Sunday revealed that 13 banks across Europe are still short of meeting their capital requirements. With initial reports suggesting that 25 banks had failed the stress tests, ECB maintains that most banks have made substantial efforts to cut their capital deficits since the end of last year (the cutoff date).
LONDON — The European Union must be bold in putting its banks on a stabler footing, starting with a tougher health check for lenders this year, the International Monetary Fund said.
The Washington-based watchdog said in its first ever formal study of the EU financial sector as a whole that the bloc had made significant progress but more was needed because financial stability remains fragile.
Marc Chandler submits:We have argued that the EU faces a horrible dilemma. One horn is the moral hazard inherent in supporting a profligate agent, while not necessarily putting a firewall around the other weaker credits in Europe. The other horn is doing nothing; risking a rout that could turn into a capital strike.What is needed is not only a solution for this particular crisis, but a new mechanism.