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.
By Jason Schwarz:
Earlier in the week, when Germany floated the idea of an orderly Greek default, French banks brutally sold off. The lesson learned? We are now 100% sure that even an orderly default would lead to bear raids on those banks holding Greek debt, and that no level of capitalization would be sufficient to protect those banks.
EUROPEAN banks are busy submitting data for the second year of Europe’s much maligned stress tests. Attention has so far focused on the flaws left over from the 2010 tests. The “stressed” scenarios banks are measured against are not all that stressful (a Greek default, for example, is still considered impossible). But a more fundamental problem is being ignored: the methodology relies on self-reporting by banks.