G7: German will rescue euro zone(LINK)# Stock
o*w
1 楼
buy buy buy
German will rescue euro zone: Ackermann
Ackermann welcomes U.S. pressure on Europe to reform
Stories You Might Like
Hong Kong sounds alarm on rising house prices
Asian stocks rebound ahead of G-7 meeting
Portugal bailout on track: international lenders
132 Comments
Share
new
Portfolio Relevance
LEARN MORE
By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) — Germany will ultimately take whatever steps
necessary to keep the euro zone intact, said Deutsche Bank’s former Chief
Executive Officer Josef Ackermann on Monday.
“If it comes to worst, before the euro zone collapses, everything will be
done to bail the euro zone out,” Ackermann said in a late afternoon speech
at the Atlantic Council. Read more on Deutsche Bank's CEO handover.
Later he said that he had “no doubt” that the German people would support
a rescue operation for the euro zone.
Click to Play
With rates this low, who needs QE3?
The idea of the Federal Reserve instituting a new round of quantitative
easing (referred by many as 'QE3') may be unnecessary with interest rates
currently so low.
“Destruction is much more expensive than further construction. A demolition
of the euro zone will create chaos in Europe and probably also in many
parts of the world,” he said.
Germany is moving cautiously because it simply fears that countries on the
European periphery will stop reform measures if they see that Berlin is
going to guarantee everything, Ackermann said.
The U.S. is pressing the government of German Chancellor Angela Merkel to do
more to strengthen the euro zone.
“I am grateful the U.S. is pushing Europe to act faster,” Ackermann said.
G-7 finance ministers and central bank governors will hold a conference call
on Tuesday to discuss the European debt crisis.
Canadian Finance Minister Jim Flaherty told reporters that the leaders are
concerned about potential consequences of a crisis in the euro zone,
particularly a banking crisis.
Later in the day, a senior U.S. Treasury official urged European leaders to
pick up the pace of action to stem the financial crisis.
“Movement to strengthen the European banking system will be of particular
importance in this time period,” said the official, who spoke under the
condition that he not be identified.
Ackermann said a Greek exit from the euro-zone would be “very difficult but
manageable.”
The public sector, including the European Central Bank, would be hurt more
than the private sector, he believes.
The EFSF, the temporary European bailout fund has about 250 billion euros ($
312.3 billion) available to lend, and this would be “sufficient for a few
months” for recapitalizing Spanish banks and funding sovereigns, he said.
Another 500 billion euros would be available in a relatively short time
under the European Stability Mechanism and the International Monetary Fund
could also lend to the region, he said.
“So all in all, we have a trillion-plus available, which in my view is
sufficient,” he said.
If there is a bank run, the only option would be for government “to give a
full guarantee as France and Germany and other countries did after Lehman’s
collapse.”
A bank run is a risk that he does not see happening, he added.
“There is no immediate concern about the collapse of the euro-system,”
Ackermann remarked.
In the short-term, Europe must speed up implementation of the ESM and also
allow the fund to recapitalize banks directly.
He also called for governments to be careful with setting higher capital
standards.
Higher capital standards just take away ammunition for banks to help the
real economy,
German will rescue euro zone: Ackermann
Ackermann welcomes U.S. pressure on Europe to reform
Stories You Might Like
Hong Kong sounds alarm on rising house prices
Asian stocks rebound ahead of G-7 meeting
Portugal bailout on track: international lenders
132 Comments
Share
new
Portfolio Relevance
LEARN MORE
By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) — Germany will ultimately take whatever steps
necessary to keep the euro zone intact, said Deutsche Bank’s former Chief
Executive Officer Josef Ackermann on Monday.
“If it comes to worst, before the euro zone collapses, everything will be
done to bail the euro zone out,” Ackermann said in a late afternoon speech
at the Atlantic Council. Read more on Deutsche Bank's CEO handover.
Later he said that he had “no doubt” that the German people would support
a rescue operation for the euro zone.
Click to Play
With rates this low, who needs QE3?
The idea of the Federal Reserve instituting a new round of quantitative
easing (referred by many as 'QE3') may be unnecessary with interest rates
currently so low.
“Destruction is much more expensive than further construction. A demolition
of the euro zone will create chaos in Europe and probably also in many
parts of the world,” he said.
Germany is moving cautiously because it simply fears that countries on the
European periphery will stop reform measures if they see that Berlin is
going to guarantee everything, Ackermann said.
The U.S. is pressing the government of German Chancellor Angela Merkel to do
more to strengthen the euro zone.
“I am grateful the U.S. is pushing Europe to act faster,” Ackermann said.
G-7 finance ministers and central bank governors will hold a conference call
on Tuesday to discuss the European debt crisis.
Canadian Finance Minister Jim Flaherty told reporters that the leaders are
concerned about potential consequences of a crisis in the euro zone,
particularly a banking crisis.
Later in the day, a senior U.S. Treasury official urged European leaders to
pick up the pace of action to stem the financial crisis.
“Movement to strengthen the European banking system will be of particular
importance in this time period,” said the official, who spoke under the
condition that he not be identified.
Ackermann said a Greek exit from the euro-zone would be “very difficult but
manageable.”
The public sector, including the European Central Bank, would be hurt more
than the private sector, he believes.
The EFSF, the temporary European bailout fund has about 250 billion euros ($
312.3 billion) available to lend, and this would be “sufficient for a few
months” for recapitalizing Spanish banks and funding sovereigns, he said.
Another 500 billion euros would be available in a relatively short time
under the European Stability Mechanism and the International Monetary Fund
could also lend to the region, he said.
“So all in all, we have a trillion-plus available, which in my view is
sufficient,” he said.
If there is a bank run, the only option would be for government “to give a
full guarantee as France and Germany and other countries did after Lehman’s
collapse.”
A bank run is a risk that he does not see happening, he added.
“There is no immediate concern about the collapse of the euro-system,”
Ackermann remarked.
In the short-term, Europe must speed up implementation of the ESM and also
allow the fund to recapitalize banks directly.
He also called for governments to be careful with setting higher capital
standards.
Higher capital standards just take away ammunition for banks to help the
real economy,
