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Tag Archives: Luxembourg
European banks, like all banks, have long been hermetically sealed black boxes. If someone managed to pry open just one tiny corner, the reek of asset putrefaction that billowed out was so strong that the corner would immediately be resealed. In cases where the corner didn’t get resealed fast enough and too much of the reek spread, the whole bank collapsed, only to be bailed out by taxpayers, often in other countries; it’s easier that way.
The only thing known about the holes in the balance sheets of these black boxes, left behind by assets that have quietly decomposed, is that they’re deep. But no one knows how deep. And no one is allowed to know – not until Eurocrats decide who is going to pay for bailing out these banks. How do we know? ECB President Mario Draghi said that on Friday in Washington.
And today, the Eurogroup of 17 finance minister had a huddle in Luxembourg to try to decide that issue.
The IMF, which can only sniff around the surface of the banks, determined that the Spanish and Italian banks alone would have to recognize an additional €230 billion ($310 billion) in losses over the next two years. As we have seen time and again, bank losses are always much larger when the truth finally seeps out, and that doesn’t happen until after the bank collapses and someone from the outside counts what’s left over….
- Money in an EU Bank? Toxic Odour Ahead (french-news-online.com)
- Draghi says ECB will remain particularly attentive to money markets, ready to consider all instruments (forexlive.com)
- ECB Bank Check to Be Different From Previous Tests, Coeure Says (bloomberg.com)
- European Banking Crisis – Seizing 10% of Everyone’s Accounts – Hello Cyprus (armstrongeconomics.com)
- Luxembourg PM Jean-Claude Juncker to Resign Over Spy Scandal; Obama Should Do the Same (financialsurvivalnetwork.com)
- Luxembourg’s PM quits over spy scandal (euronews.com)
- Luxembourg PM to step down after bugging and corruption claims (politics.ie)
- Luxembourg, Malta: We’re No Cyprus (blogs.wsj.com)
- S&P shows how Malta’s banking system is different from that of Cyprus (timesofmalta.com)
- Czech Push to Lure Hedge Funds Eyes Luxembourg Not Cyprus – Bloomberg (bloomberg.com)
- Luxembourg, European Union’s Wealthiest Country, Eyed As Next Ticking Bomb After Cyprus (huffingtonpost.com)
- After Cyprus, the EU’s Attention Turns to Tiny Luxembourg (businessweek.com)
- Luxembourg is the next Cyprus (engineeringevil.com)
- Hands off our banking sector, Luxembourg tells euro zone (timesofmalta.com)
- A Night in Luxembourg (thefotography.wordpress.com)
- Cyprus’s banks have been tamed – are Malta and Luxembourg next? (timesofmalta.com)