Where did this €698bn exposure come from? June 13, 2012 Q How did this exposure arise? A When money is transferred from a bank in Greece to a bank in Germany through the Target2 payments system, the Bundesbank creates the money in the account. It is owed that amount by the European Central Bank until such time as it can be retrieved from Greece’s central [...]
German central bank exposed to Greek exit June 13, 2012 BUNDESBANK claims on the Eurosystem soared in the past six months as investors pulled cash out of weak economies and poured it into Germany, new data has revealed, leaving the central bank – and so German taxpayers – heavily exposed to the weaker economies. The German central bank’s exposure to the Target2 payments system stood [...]
MPs beg Monti to spend more as yields soar June 13, 2012 ITALY’S borrowing costs jumped again yesterday as the sovereign debt crisis continued, while official data showed industrial output plunging across the Eurozone, underlining the crippling impact on the real economy. Prime Minister Mario Monti came under pressure from MPs who demanded he slow down his austerity programme, asking him to borrow more in an effort [...]
Greek outflows rise as analyst calls voters complacent on euro June 13, 2012 IF GREEKS realised the terrible state of their country’s banks and understood the risks of a Eurozone exit, the flow of deposits from banks would become much worse, a top analyst claimed yesterday. Deposits are already down 30 per cent from their peak, falling by between €6bn (£4.9bn) and €7bn in May, with the outflow [...]
MERKEL FAILS TO DO FISCAL COMPACT DEAL June 13, 2012 ANGELA MERKEL’S government failed to resolve a row with opposition parties yesterday, holding up parliamentary ratification of both the EU’s new fiscal treaty and the Eurozone’s permanent rescue fund. Talks will resume next week.
European MPs back new powers June 13, 2012 European ministers yesterday backed new powers for the EU executive to exercise control over national budgets and urge struggling countries to take a bailout. The ministers’ agreement is necessary for the new powers to become binding, but negotiations will take months. If accepted, the commission would be able to prepare a proposal for ministers to [...]
Credit Agricole’s Emporiki in focus June 13, 2012 French bank Credit Agricole is considering walking away from its troubled Greek Emporiki Bank unit and letting it fail, according to the Wall Street Journal. Another option under consideration is for Credit Agricole to merge Emporiki into a larger conglomerate of Greek banks in which the French lender’s stake would be diluted to about 10 [...]
One Spanish bank could close June 13, 2012 Spain may need to wind down one of its bailed-out savings banks, the European Union’s competition chief said yesterday, warning liquidation of a bank may be preferable if the costs of rescuing it are too high for taxpayers. The European Commission is allowed to refuse a request to rescue a bank if it considers the [...]
Sainsbury says it beat rivals but shares fall June 13, 2012 J SAINSBURY crowned itself “a Jubilee winner” after chief executive Justin King said the Queen’s celebrations helped the retailer continue to beat its rivals in the first quarter of 2012. Like-for-like sales rose 1.4 per cent in the 12 weeks to 9 June, while total sales rose 3.8 per cent excluding fuel, with savvy shoppers [...]
Grocery industry up on jubilee weekend June 13, 2012 THE DIAMOND jubilee injected a dose of cheer into the UK grocery retail industry, boosting sales by an impressive 12.5 per cent in the week running up to the festive weekend, according to insights firm Nielsen. The successful seven days came on top of another bumper week, when grocery sales jumped 5.7 per cent due to the [...]
