Comments on: The charade of EU bank stress tests http://blogs.reuters.com/christopher-whalen/2011/07/18/the-charade-of-eu-bank-stress-tests/ Sun, 22 Apr 2012 12:14:58 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: rverne10 http://blogs.reuters.com/christopher-whalen/2011/07/18/the-charade-of-eu-bank-stress-tests/comment-page-1/#comment-1408 rverne10 Sat, 26 Nov 2011 03:16:46 +0000 http://blogs.reuters.com/christopher-whalen/?p=528#comment-1408 @hariknaidu And how is the Euro a sovereign currency-what federated government issues it from its central bank? Long pause while we listen to the silence of nothing. Here's wikipedia's definition of the EBA The European Banking Authority (EBA) is a regulatory agency of the European Union headquartered in London, United Kingdom. How is a requlatory agency a central bank? How does money flow into the central banks of Greece, say for example Oh, wait a minute-Greece does not have a central bank ! Dohhhh! @hariknaidu
And how is the Euro a sovereign currency-what federated government issues it from its central bank?
Long pause while we listen to the silence of nothing.
Here’s wikipedia’s definition of the EBA

The European Banking Authority (EBA) is a regulatory agency of the European Union headquartered in London, United Kingdom.

How is a requlatory agency a central bank?
How does money flow into the central banks of Greece, say for example
Oh, wait a minute-Greece does not have a central bank
!
Dohhhh!

]]> By: hsvkitty http://blogs.reuters.com/christopher-whalen/2011/07/18/the-charade-of-eu-bank-stress-tests/comment-page-1/#comment-1001 hsvkitty Tue, 19 Jul 2011 22:47:36 +0000 http://blogs.reuters.com/christopher-whalen/?p=528#comment-1001 *chuckles* yeah, like the US banks are not insolvent. Rather then allowing banks to mark to market and cook their books, call empty derivatives capital and doing soft testing (which 10 banks failed in 2009), while they give themselves outrageous bonuses on top of huge salaries, how about a some hard asset tests and independent audits? Why haven't the shareholders demanded it, since they came up short even in soft testing? Otherwise, a default would be a pretty fun way to do a hard test, being there is no money in the coffers to bail out the banks. The bank bailouts that weren't made public with the TARP bailouts: http://blogs.wsj.com/economics/2008/03/28/guide-to-feds-alphabet-soup/ Credit Unions all the way... *chuckles*

yeah, like the US banks are not insolvent.

Rather then allowing banks to mark to market and cook their books, call empty derivatives capital and doing soft testing (which 10 banks failed in 2009), while they give themselves outrageous bonuses on top of huge salaries, how about a some hard asset tests and independent audits? Why haven’t the shareholders demanded it, since they came up short even in soft testing?

Otherwise, a default would be a pretty fun way to do a hard test, being there is no money in the coffers to bail out the banks.

The bank bailouts that weren’t made public with the TARP bailouts:
http://blogs.wsj.com/economics/2008/03/2 8/guide-to-feds-alphabet-soup/

Credit Unions all the way…

]]> By: FBreughel1 http://blogs.reuters.com/christopher-whalen/2011/07/18/the-charade-of-eu-bank-stress-tests/comment-page-1/#comment-1000 FBreughel1 Tue, 19 Jul 2011 18:32:44 +0000 http://blogs.reuters.com/christopher-whalen/?p=528#comment-1000 The author sounds patriotic, which is nice. Saying that most European banks are insolvent a bit over-enthusiastic. Let's just wait a year, and then read this article again. Especially the part on the US Federal Home Loan Banks... The author sounds patriotic, which is nice. Saying that most European banks are insolvent a bit over-enthusiastic. Let’s just wait a year, and then read this article again. Especially the part on the US Federal Home Loan Banks…

]]> By: hariknaidu http://blogs.reuters.com/christopher-whalen/2011/07/18/the-charade-of-eu-bank-stress-tests/comment-page-1/#comment-991 hariknaidu Mon, 18 Jul 2011 16:27:22 +0000 http://blogs.reuters.com/christopher-whalen/?p=528#comment-991 This guy may be an expert on US banking; his understanding of EU banking system is null and void: truly meaningless!~ The case of Spanish banks that're insolvent are Cajas under Provincial government's authority (eg. Landerbanks in German states). The big banks of Spain are better collatralized than their competitors in France & Germany. EBA is not a statutory (EU) authority because German central bank doesn't approve of such institutions to govern their sovereign banks. Germany represents the biggest bottleneck to EU authority on banking sector and its regulatory regime, if any. The Euro is sovereign under ECB constitutional authority which Berlin cannot dictate to; German centralbank is not going to allow Euro bonds to be issued - as explicit transfer union! This guy may be an expert on US banking; his understanding of EU banking system is null and void: truly meaningless!~

The case of Spanish banks that’re insolvent are Cajas under Provincial government’s authority (eg. Landerbanks in German states). The big banks of Spain are better collatralized than their competitors in France & Germany.

EBA is not a statutory (EU) authority because German central bank doesn’t approve of such institutions to govern their sovereign banks. Germany represents the biggest bottleneck to EU authority on banking sector and its regulatory regime, if any.

The Euro is sovereign under ECB constitutional authority which Berlin cannot dictate to; German centralbank is not going to allow Euro bonds to be issued – as explicit transfer union!

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