And transfers would have been needed to recapitalize the periphery banks.

This scheme for recapitalizing banks has three advantages over others that have been suggested by economists and politicians.

The pace of recapitalization needs to be stepped up, and the new round of stress tests for European banks will mark a clear line in the sand.

And bank bailouts, involving the direct use of public money to recapitalize failing institutions, are even more costly and politically unpopular.

At the same time, the best way to contain financial contagion would be to implement a pan European plan to recapitalize eurozone banks. This implies using official resources like the EFSF not to backstop an insolvent Greece, but to recapitalize the country s banks and those in Ireland, Spain, Portugal, Italy, and even Germany and Belgium that need more capital.

The Stability and Growth Pact has been relaxed in order to increase governments capacity to borrow to recapitalize their banks.

The government has established a new agency, Central Hujin Investment Company, to manage and re capitalize big state owned banks before they are sold.

At the same time, the best way to contain financial contagion would be to implement a pan European plan to recapitalize eurozone banks.

In some countries, the threat of bank recapitalization with public funds has resulted in a drop in market confidence and a huge rise in interest rates.

Worse still, much of the money flowing into the banks to recapitalize them so that they could resume lending has been flowing out in the form of bonus payments and dividends.

In this regard, we welcome the recent decision by Spain to seek financial assistance from the European Union to recapitalize its banks as required.

The eurozone needs a banking union a European deposit insurance scheme in order to stem capital flight, a European source for financing bank recapitalization, and eurozone wide supervision and regulation.

Of course, national governments would have had to use taxpayer funds to recapitalize northern European banks especially in France and Germany that lent too much to the periphery.

The two Cypriot banks then found themselves obligated to seek recapitalization in the capital city, Nicosia .

regional development banks

Detective Banks.

Lydia Banks.

Bank robbers!

But China s rulers know that their highly repressed banking system is vulnerable as the country continues to pursue gradual financial liberalization, and that foreign currency reserves may be needed for recapitalization.

Runs by panicked investors have required central banks to undertake unprecedented lender of last resort operations. Extensive loan losses have required expensive bank recapitalization operations.amp 160

Extensive loan losses have required expensive bank recapitalization operations.amp 160

2011 Bank of Cyprus sold Bank of Cyprus Australia to Bendigo and Adelaide Bank.

And if those are worth nothing, then maybe I'm very junior in seniority in terms of where my loan is and maybe I get nothing. Or I get a few pennies on the dollar here.

The European Banking Disunion

Taming Europe s Banks

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The reaction among national politicians, central banks, and banks themselves was not universally favorable.

A combination of financial sector recapitalization and rapid expansion of the Fed s balance sheet prevented a complete credit lockup.

None of this means that banks should be granted a regulatory holiday and forget the need to recapitalize.

Central Banking s New Face

The End of Banks?

Central Banks Outdated Independence

Celebrity Central Bankers

Central Banking s New Club Class

debt . 60 21

He was a bank robber.

GEORGE BATES, THE BANK ROBBER.

The Kid's no bank robber.

The Economist favours the support, via central banks, of banks and other important corporations.

Are Bad Banks a Good Idea?

The market share of state owned banks is 85 .

Central bankers or markets?

Control of banking is the simplest.

Fifteen of the largest banks choose Russia

Maybe in bankruptcy we realize that these are worth nothing.