Financial Regulatory Forum

EU leaders reach deal to rescue Greece

By Marcin Grajewski and Jan Strupczewski

BRUSSELS, Feb 11 (Reuters) – European leaders have reached a deal to provide aid to Greece, EU president Herman Van Rompuy said on Thursday, in an unprecedented move to stave off a broader crisis in the 16-nation bloc that shares the euro.

“There is an agreement on the Greek situation. We will communicate now the agreement to the other leaders,” van Rompuy told reporters gathered at an EU leaders’ summit.

The agreement was forged in talks between Van Rompuy, European Commission President Jose Manuel Barroso, French President Nicolas Sarkozy, German Chancellor Angela Merkel, European Central Bank President Jean-Claude Trichet and Greek Prime Minister George Papandreou.

Polish Prime Minister Donald Tusk told reporters earlier that the aid, which would amount to the first bailout of a euro zone members since the currency was created 11 years ago, was likely to come in the form of loans.

“It could be voluntary loans from member states. That seems to be the best option,” Tusk said.

European governments agree to help Greece – source

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By Matthias Sobolewski

BERLIN, Feb 9 (Reuters) – European governments have agreed in principle to help heavily indebted Greece, a senior German coalition source said on Tuesday, in what would be the first rescue of a euro zone member in the currency’s 11-year history.

“The decision on help for Greece has been taken in principle within the euro zone,” said a source in the German coalition government who has knowledge of the negotiations.

Various options were under consideration and no final decision had been taken but the most likely possibility was to offer “bilateral help,” the source said.

Austria nationalises Hypo to avoid bank’s collapse

By Christian Gutlederer and Peter Maushagen

VIENNA/MUNICH, Dec 14 (Reuters) – Austria nationalised Hypo Group Alpe Adria on Monday to avoid a collapse that could have undermined trust in banks in eastern Europe and cast doubt over Austria’s and Germany’s backing of state-owned lenders.

Austria is taking full control of the ailing bank after a high-stakes gamble over the weekend that soured German-Austrian relations and required interventions by the presidents of the European Central Bank and the Bundesbank to be resolved.

German state bank BayernLB, Austrian insurer Grawe and the Austrian region of Carinthia are to give away their stakes for a nominal amount, while injecting around 1 billion euros ($1.5 billion) of capital, Finance Minister Josef Proell said.

ECB’s Trichet: Europe needs to improve legal tools

Trichet: need better tools

Trichet: need better tools

    PARIS, Dec 7 (Reuters) – Europe needs new tools to ensure authorities can intervene effectively in the case of the failure of a systemically important financial institution, European Central Bank President Jean-Claude Trichet said on Monday. (more…)

ECB’s Trichet-hard to judge financial stability

Jean-Claude Trichet, President of the European Central Bank (ECB) REUTERS/Johannes Eisele (GERMANY BUSINESS)    FRANKFURT, Nov 18 (Reuters) – Assessing the stability of Europe’s financial institutions is “particularly complex” at the moment, European Central Bank President Jean-Claude Trichet said on Wednesday. (more…)

European Central Bank welcomes new role in new European supervisory body

  FRANKFURT, Nov 4 (Reuters) – The European Central Bank welcomed plans to give it the key role in a new European supervisory body, saying it would neither distract it from ensuring price stability nor create a threat to its independence.


BIS-New bank rules help avoid booms, busts-Trichet

ECB-RATES/    BASEL, Sept 7 (Reuters) – New global rules for bank oversight should help ease boom-and-bust cycles and prevent the build-up of asset bubbles, top central bankers said on Monday. (more…)