Economy and Business Info

Posts Tagged ‘financial system’

The chair of Group Scamander, Emilio Biotin, said Wednesday that imposing a tax on the financial sector is not the appropriate measure to prevent the taxpayer has to bear the costs of the crisis, something he described as unacceptable and said the rate would hamper recovery. During his speech at the Third International Conference of Banking and Finance in the City of Scamander in Barilla del Monte (Madrid), Biotin said that “no healthy economy without healthy banks,” so that the private sector and in particular the banks have to have a “key role” in the emerging economic recovery. The conference, which also involved the governor of the Bank of Spain and European Commission Vice President, among others, was held for the first time in October 2008, shortly after the bankruptcy of Lehman Brothers, which marked the beginning of the worst economic recession in recent decades, which “only now” start to recover, Booty recalled. The “decisive” action by governments and monetary authorities two years ago faced the crisis and averted the disaster, as important steps were taken that allowed now have “a recovering economy, a solvent bank even before the crisis and a regulatory and supervisory framework in the process of being strengthened, “he said. The challenge now is to consolidate a sustained growth, underpinned by a sound financial system, sound and efficient, “said Booty, who explained that, therefore, the debate should not focus on taxing the dealer with a special fee, but take measures to enable the financial system to function properly and to reduce the likelihood of new crises. However, while it is clear that the measures taken so far and others that have been announced have strengthened the international financial system, much remains to be done, and in the case of Spain, “it must finish the task” because “the devil is in the details, “he said. In particular, Booty made it a priority to improve monitoring, while stressing the importance of agreement being negotiated in Europe to strengthen the supervisory framework. Also considered essential not to penalize “the essential function of the bank”, financial intermediation and to clearly separate commercial banking from investment banking and the return “all public support.” He said it is necessary to create mechanisms for assessing systemic risks incurred by institutions and allow “orderly exit” or even the sale of those who cannot overcome a crisis. In the international context, the entities that have received aid should return, he insisted Booty, who called for the establishment of the Deposit Guarantee Fund preloads by institutions, as in Spain, and have capacity to intervene in a crisis.

The economy introduced a system of beliefs, the world submitted their designs and explained the role we had given in that world the financial racket was only an invention of idolatry is idolatry to and we know that idolatry always end very badly, causing the collective sacrifice of their gullible followers. “Cops I read something in a journal as ABC, which was a serious newspaper.

The strange thing is that the columnist who writes that almost excuses the role of Zapata in this apocalyptic scenario that draws: “A Zapata now stuck with poor puppet in the hands of the priests of idolatry.” Total, which will be to blame for Spain to go the way of the 5 million unemployed and is in a state of economic ruin of Zapata is not harmful or its management but of the economy. This is like blaming the rain to weather, or blame the bad occurrences of some to philosophy or thought in general, or as a school that have gone wrong because the accounts of mathematics. You do not say anything about the tremendous simplicity to attribute the current financial system that identifies idolatry with the economy, which says so openly and whose credulous followers are ready to sacrifice them.

The European Commission proposed on Wednesday May 26 to create a harmonized network of national funds for all Member States, which could include Spanish guarantee fund to be financed with fees paid the entities themselves. These funds will provide for the orderly liquidation of failed banks in order to prevent taxpayers are to bear the costs and the current financial crisis.

The creation of the bank rate and was claimed last March by the managing director of the International Monetary Fund (IMF), Dominique Strauss-Kahn, to facilitate the management of bankruptcy and avoid instability in the financial system. However, the president of the European Central Bank (ECB), Jean-Claude Troche, called for caution when implementing this new mechanism to not jeopardize the recovery.

The EU executive will argue that Member States adopt a common approach in creating these funds national resolution to avoid distortions of competition and improving crisis management capability transfers

“The goal is to ensure that financial institutions are the first to contribute to the costs of future crises,” said Internal Market Commissioner, Michel Barmier, in a recent speech. “Prevention is less expensive than repair,” he stressed.