Insurers get euro stress tests off to a duff start
By George Hay
LONDON, July 5 (Reuters Breakingviews) – A tenth of Europe’s
insurance companies have flunked this year’s stress test, though
the regulator won’t name them. The tests were based on rules
that don’t take force until 2013. But they also weren’t tough
enough. European authorities would have been better off doing
nothing.
Full view will be published shortly.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Get Breakingviews alerts directly to your inbox three times
a day. To sign up click here: here
Feature: What’s Greek for default?
– The authors are a Reuters Breakingviews columnists. The opinions expressed are their own –
By Neil Unmack and George Hay
LONDON (Reuters Breakingviews) – When is a country in default? In Greece’s case, the answer depends on who you ask. Euro zone politicians want holders of the country’s bonds to help contribute to another bailout. However, they also want to avoid the wider market fallout that a default would bring. Getting accountants, rating agencies, derivative traders and the European Central Bank to agree will be hard. But not all opinions have equal weight.
UK banks got better end of government showdown
By George Hay
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
LONDON — UK banks have got the better of their showdown with the government. After months of discussions, the UK coalition finally revealed details of “Project Merlin” on Feb. 9. It may look as if George Osborne, the Chancellor of the Exchequer, has won major concessions from lenders. Almost the exact opposite is true.
Lloyds’ defence against surgery doesn’t convince
– The author is a Reuters Breakingviews columnist. The opinions
– The author is a Reuters Breakingviews columnist. The opinions
expressed are his own –
By George Hay
LONDON, Jan 27 (Reuters Breakingviews) – Lloyds Banking
Group (LLOY.L: Quote, Profile, Research) has failed to find a magic bullet that could kill
off the threat of radical surgery. The UK lender, whose
acquisition of rival HBOS pushed its share of the current
account market to 30 percent, has made a fulsome submission to
the Independent Commission on Banking, arguing why this dominant
position doesn’t matter. But it isn’t convincing.
UK bank pay exposure could be counter-productive
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
LONDON — The UK coalition’s mutterings about greater bonus disclosure look counter-productive. The Liberal Democrats, the government’s embattled junior partner, are understandably anxious to show voters they understand public anger about excessive banker pay. But publishing banks’ highest pay packages is not the way to go about it.
UK banking inquiry won’t be a pushover
– The author is a Reuters Breakingviews columnist. The opinions
– The author is a Reuters Breakingviews columnist. The opinions
expressed are his own –
By George Hay
LONDON, Dec 24 (Reuters Breakingviews) – The UK’s banking
commission won’t be a pushover. The independent body, set up to
study the structure and competitiveness of UK banks in the wake
of the financial crisis, delivers its final report in September.
Few expect it to go for the nuclear option of formally breaking
up investment and retail banks. But that doesn’t mean the likes
of Barclays (BARC.L: Quote, Profile, Research) and Lloyds Banking Group (LLOY.L: Quote, Profile, Research) can
relax.
Cable’s muzzling is Christmas present for banks
– The author is a Reuters Breakingviews columnist. The opinions
– The author is a Reuters Breakingviews columnist. The opinions
expressed are his own –
By George Hay
LONDON, Dec 22 (Reuters Breakingviews) – Christmas has come
early for Britain’s banks. Until now, their yuletide good cheer
had been dampened by the threat of serious structural change
when the UK’s independent commission on banking reports next
September. Now the main champion of bank break-ups has himself
been weakened.
RBS should pay no cash bonuses for 2010
– The author is a Reuters Breakingviews columnist. The opinions
– The author is a Reuters Breakingviews columnist. The opinions
expressed are his own –
By George Hay
LONDON, Dec 21 (Reuters Breakingviews) – Royal Bank of
Scotland (RBS.L: Quote, Profile, Research) should scrap cash bonuses for 2010. Last year,
the board of the all-but-nationalised lender nearly quit
following a clash with the UK government over how much to pay
its investment bankers. Something big is needed to avoid a
similar drama this time around.
Irish bank restructuring has tidy if slow solution
Ireland’s bloated banking sector needs fewer, smaller lenders. A sovereign bailout should provide breathing space to perform a radical restructuring. But a fire sale of Irish banking assets is not the only way to cut the banks down to size.
The combined liabilities of Ireland’s domestic lenders, both private and state owned, exceed 500 billion euros, or four times Irish GDP. The country’s likely 90 billion euro bailout will deliver resources to recapitalize the banks and guarantee wholesale funding for several years. In that time, the sector could be redrawn.
Irish bank rescue could cost over 100 bln euros
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
An Irish bank rescue could cost over 100 billion euros. That’s the rough amount needed to fund Allied Irish Banks, Bank of Ireland and Anglo Irish Bank for three years, while recapitalising them to a point where they might regain the confidence of the markets. But the euro zone may not actually have to shell out anything like that much.
-
About George
-
Follow George
