ECB’S NOWOTNY SEES ARGUMENTS FOR GIVING ESM A BANKING LICENSE
Posted by WARREN MOSLER on July 25th, 2012
Yes, I think it’s all still happening as suggested last month after Trichet proposed a plan that included the ECB.
Lots of market vol, doubts, fears, etc. and all for good reason as it could fall apart as easily as it could all succeed. I still lean towards the latter.
From Dave Vealy:
NOWOTNY SAYS ESM GAINING BANKING LICENSE IS ONGOING DISCUSSION
NOWOTNY NOT AWARE OF `SPECIFIC DISCUSSIONS’ WITHIN ECB ON ESM
ECB’S NOWOTNY SEES ARGUMENTS FOR GIVING ESM A BANKING LICENSE
From what I am aware, first time an ECB official raises this issue. A significant positive surprise if this is the case, as it would signficantly increase the ESM’s capacity for intervention.
ECB’S NOWOTNY SEES ARGUMENTS FOR GIVING ESM A BANKING LICENSE
ECB’S NOWOTNY COMMENTS IN INTERVIEW WITH BLOOMBERG
NOWOTNY SAYS EURO-AREA ECONOMIC DIVERGENCES ARE INCREASING
NOWOTNY SAYS INFLATION WILL SLOW, ECB DOESN’T SEE DEFLATION
NOWOTNY URGES AGAINST RUSHING ECB BANK SUPERVISORY ROLE
NOWOTNY: ECB NOT TALKING ABOUT NEGATIVE DEPOSIT RATE FOR NOW
NOWOTNY SAYS ESM GAINING BANKING LICENSE IS ONGOING DISCUSSION
NOWOTNY NOT AWARE OF `SPECIFIC DISCUSSIONS’ WITHIN ECB ON ESM
July 25th, 2012 at 8:58 am
And what exactly will this banking license solve? ECB does not run OMOs. So how is ESM going to solve the problem of Spain?
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Cesar Reply:
July 25th, 2012 at 3:14 pm
@Sergei,
“Leverage” – one would have thought?
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WARREN MOSLER Reply:
July 26th, 2012 at 1:31 am
it means it won’t be revenue constrained
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roger erickson Reply:
July 26th, 2012 at 8:11 am
@WARREN MOSLER,
If they start off thinking of the ESM as a “Bad Bank” walled off from the ECB, they’ll likely want to wind it down ASAP – given current thinking.
Everything’s still up in the air. Is there enough time for this slow process to work? The lack of urgency is scary.
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July 25th, 2012 at 10:20 am
yes.. and the negative outlook of Moody for Germany is a silent message of the American friend of Draghi.. they are planning an Europena Ltro3 here.. may be with the help of QE3 by Fed..
and Silver&Gold will go on the sky..
THE MARKET DOESN’T EXIT.. THEY ARE ONLY 20 WORLD BANKS THAT JOKES WITH OUR DEBT TO GAIN WITH PANIC % EUFORIA …
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July 25th, 2012 at 11:38 am
ESM getting banking license …needs German approval ..
Good luck with that
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July 25th, 2012 at 5:14 pm
The Euro is finally going to collapse… for the 20th time. Yawn…
“The bank’s president Mario Draghi said earlier this month that such a scheme would amount to an ECB sovereign rescue by the back door and “destroy its credibility”.”
http://www.telegraph.co.uk/finance/financialcrisis/9427721/Euro-exit-beats-begging-bowl-says-Spanish-elder-statesman.html
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Unforgiven Reply:
July 26th, 2012 at 2:00 am
@Adam (ak),
Mario – You can’t destroy what never existed.
“The Euro is finally going to collapse… for the 20th time. Yawn…”
Kind of reminds me of the tail end of a James Brown concert.
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July 27th, 2012 at 11:18 am
Alphabet soup does not taste good. What is ESM? I think it would be a good idea to get ordinary people talking about money. Talking in code that people don’t understand does not promote that.
The first time an acronym is introduced in an essay, the whole term should be spelled out, unless, like NATO, there’s near universal awareness of what’s being talked about, even if nobody’s quite sure what NATO is doing for us.
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Zaid Reply:
July 29th, 2012 at 2:16 am
@Monica Smith,
It’s the European Stability Mechanism:
http://en.wikipedia.org/wiki/European_Stability_Mechanism
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