BBC News
October 23, 2011
The heavy lifting on sorting the eurozone's financial crisis happens this afternoon, and presumably into the night, after David Cameron and government heads from non-euro countries make their escape home.
One immediate question for them is whether to disclose as soon as tomorrow the detail of how the €110bn of new capital that EU finance ministers decided yesterday has to be raised by European banks will be distributed between individual banks - or whether to defer those market-sensitive announcements until the whole eurozone rescue package is nailed down.
Which would mean, barring disasters, that all the new firefighting initiatives would be displayed in a great splurge on Wednesday, after what is supposed to be the final definitive eurozone rescue summit.
The financial case for immediate disclosure of the bank fund-raisings is that there is uncertainty about which banks need what - and it would help investors' confidence for them to know which banks are seen as weakest.
Except for one thing. It is not yet clear who or what is going to provide the capital needed by banks in countries with the biggest debts - so premature disclosure, pending resolution of where the finance is coming from, could destabilise markets.
More
No comments:
Post a Comment