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| Europe |
| Taxpayer backstop for European banks |
| 2011-07-10 |
| Finally, financiers seem to be getting what they always wanted...supremacy over the people of Europe. For the last 400 years they tried lending to royalty only to find getting their money back was often problematic. Then they tried "Democracy", but that was also problematic as they tended to get into too many wars. But now they've solved the problem, simply turn all the taxpayers into to dhimmies. Banks can no longer go broke and profits will go to those ordained by God to receive them, the financial oligopoly. I suppose this is only fair as they are now our new overlords. European governments are set to provide a taxpayer backstop to banks that fail the results of tougher stress tests to be announced on July 15. UK Treasury officials will join European ministers at the Economic and Financial Affairs Council, or ECOFIN, on Tuesday to agree plans it hopes will calm markets ahead of the test results from the European Banking Authority. Lenders that fail the test, and cannot raise capital from investors within six months, look set to receive government support, according to a leaked EU document seen by Reuters. The move will come as a shock to taxpayers after G20 policymakers promised that in the aftermath of the financial crisis they would never again have to bail out banks. Europe's top 91 lenders have been tested to ensure they can withstand any further shocks and maintain a core capital level of 5pc. Robert Law, banking analyst at Nomura, thought UK banks would pass the tests "relatively comfortably" but small German and Spanish lenders could struggle |
| Posted by:tipper |