Losses that eurozone banks would suffer would be manageable if the banks were properly and aggressively recapitalized.

Broad coverage All banks in the eurozone will be covered by the new European supervisory system.

The IMF estimated that U.S. banks were about 60 percent through their losses, but British and eurozone banks only 40 percent.

By contrast, eurozone banks have almost stood still on both indicators.

By contrast, eurozone banks have almost stood still on both indicators.

Many eurozone banks have made far less progress in strengthening their capital adequacy and liquidity than have American and British banks since the financial crisis erupted.

Greece s banks will be pushed to the point of failure, making the costs of saving Greece and the eurozone prohibitively high.

Regardless of what Greece does, eurozone banks now need to be rapidly recapitalized, which requires a new EU wide program of direct capital injections.

How could a eurozone supervisor be based outside the eurozone?

Rebalancing the Eurozone

Demokratisasi di Eurozone

THE EURO AREA ECONOMY

THE EVOLUTION OF THE EURO AREA

And, because eurozone banks hold a substantial part of their assets in the form of eurozone sovereign bonds, the sovereign debt crisis became a potential banking crisis, worsened by banks other losses, owing, for example, to the collapse of housing prices in Spain.

Shareholders

Manufacturer

Suppliers

Banks

The banks get it.

Because many banks hold a large volume of eurozone government debt, the results will depend very much on how the ECB assesses sovereign risk.

The banks rob people, and people rob the banks.

London vs. the Eurozone

The Euro Zone s Default Position

The Eurozone s Delayed Reckoning

The Eurozone s False Recovery

United States

UNITED KINGDOM

These banks are

The banks are closed.

and ca.).

He wants four cans of beans four cans of tomato soup, three cans of chilli.

A Survival Strategy for the Eurozone

Indicators for the eurozone are even worse.

Brady Bonds For the Eurozone

Eurozone Chutzpah and the IMF

The False Promise of a Eurozone Budget

The Eurozone s Last Stand

The Eurozone s Minsky Conundrum

Sustaining the Unsustainable Eurozone

There is a second solution the exit of Germany from the eurozone or the division of the eurozone into two sub regions.

Third, to restore credit growth, eurozone banks and banking systems that are under capitalized should be strengthened with public financing in a European Union wide program. To avoid an additional credit crunch as banks deleverage, banks should be given some short term forbearance on capital and liquidity requirements.

In 2010 2012, by contrast, systemically important European banks were exposed, raising the risk of a domino effect that threatened the entire eurozone.

Third, to restore credit growth, eurozone banks and banking systems that are under capitalized should be strengthened with public financing in a European Union wide program.

Europe s Zombie Banks

The banks are closed today.