The A-List: Lorenzo Bini Smaghi: Do not trust politicians to supervise Europe’s banks
Bank supervisory authorities that are not sufficiently independent, and are too closely associated with the political authorities, are generally under pressure to delay the identification of insolvent banks, for the fear that taxpayers would get upset.
(Reuters) – On a warm summer day on the eve of the Olympic Games, European Central Bank President Mario Draghi stood up at a business conference in London and dropped a bombshell.
Mark Carney to be next Bank of England governor Mark Carney, governor of the Bank of Canada, will be the next governor of the Bank of England, George Osborne told MPs on Monday.
The drama of the incomplete ECB Executive Board continues. The European Parliament strongly promotes a candidate with female features.
A European Parliament committee opposed the appointment of Luxembourg’s Yves Mersch to the European Central Bank’s Executive Board because of unhappiness about a lack of female candidates for the job.
As a woman I start being annoyed and offended to hear that the next candidate is evaluated not on the expertise but on the fact of possessing female characteristics. I thought women wanted to be judged equally for their expertise and not just be chosen for a job to make the Board look nice.
The ECB Executive Board is incomplete for half a year. Meanwhile other European institutions are organising “battle of the sexes”. No wonder it looks like Europe is not going to recover anytime soon.
I found this article on Reuters Mobile (us.mobile.reuters.com)
Draghi enters lion’s den to sell bond-buying plan
BERLIN (Reuters) – European Central Bank President Mario Draghi faces a two-hour grilling on Wednesday from German lawmakers who fear his bond-buying plan to ease the region’s debt crisis could fuel inflation and undermine the ECB’s cherished independence. http://www.reuters.com/article/idUSBRE89M1M920121023
“A legislative framework is to be agreed among member states by 1 January 2013.
The European Central Bank (ECB) will be given supervisory responsibility, with the power to intervene in any bank within the eurozone.” http://www.bbc.co.uk/news/world-europe-19999998
Long live central bank independence!
“According to a report from the Financial Times, the big idea on the table right now to stem the eurozone banking crisis may be illegal.”
Read more e.g. here
Although in these kind of moments we are all EU enthusiasts and those with negative comments are hushed away, I can’t stop feeling there is something wrong with this year’s Nobel Peace Prize. And I can’t stop comparing it to the Peace laureate in 2009.
Has Nobel Committee become a subsidising organization recently? Is it one of the sources of foreign reserves for the ECB? I’d definitely keep the whole amount of 8 million Swedish kronor in its original currency. You never know when you’d need to recapitalize the ECB.
(A picture from https://www.crowdedcomics.com/node/8010/8018)