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Tuesday, December 10

10th Dec - Europe forming the resolution fund




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EUROPE
  BANKING UNION
Europe tries to cut deal to close failing banks – Reuters
Europe is seeking to agree by year-end on how to close failing banks, part of an ambitious plan to create a single banking framework and fix broken lenders whose problems have festered since the financial crisis. The main issues are: Who decides and who pays?

Euro zone bailout fund should be allowed to help close failing banks – document – Reuters
The euro zone's bailout fund should be allowed to lend to help finance the closure of banks in the bloc, a proposal prepared for euro zone finance ministers showed on Monday.



Europe sketches plan to close troubled banks – Reuters
Euro zone countries edged closer on Tuesday to agreeing a plan to close ailing banks and sharing the costs, a move that would pave the way for a fundamental reform to underpin the currency and its banks.

EU banking union: leaked “terms of reference” – Brussels blog / FT

EU Finance Chiefs Lay Down Red Line on Creditor-Writedown Rules – BB
EU finance ministers said they won’t accept any weakening of planned rules for creditor writedowns at failing banks, potentially hampering compromise talks with the European Parliament.

EU executive cautious on shadow banking controls – Reuters
Patrick Pearson, a senior official at the bloc's European Commission, signaled the latest softening in tone among regulators, fearful of unintended consequences of new rules for the flow of credit to companies.


EUROPEAN CENTRAL BANK
The ECB’s reserve currency dilemma – The A-list / FT
The eurozone is in a unique situation. It is the issuer of the second-most important currency, whose demand by the rest of the world is on the rise. At the same time its trade surplus with the rest of the world increases. This requires innovative solutions.

The ECB’s Bridge Too Far – Project Syndicate
Is Europe’s economic crisis mutating once again? If debt fears are now being superseded by the danger of deflation, as recent data suggest, the European Central Bank has its work cut out for it – and there is nothing to suggest that it is up to the task.

Coeure sees no reason for 'spectacular' ECB action – Reuters
Euro zone inflation is not undershooting the European Central Bank's target of just below 2 percent so much that it should use its heaviest artillery to try to boost prices, ECB Executive Board member Benoit Coeure said.

Coeure Says ECB Would Offer More LTROs Only When Banks Can Lend – BB

Money and monetary institutions after the crisis – ECB
Speech by Mario Draghi, President of the ECB, at the conference organised by Banca d’Italia in memory of Curzio Giannini, Rome, 10 December 2013

  PIIGS
The Pain In Spain Is Mainly... Everywhere – ZH

Ukraine CDS hits 4-year high as tension rises for investors – beyondbrics / FT

OTHER
FX evolution – alphaville / FT
The BIS’s overview of the ongoing decentralisation of the FX market

Everything must have a reason, even banks – alphaville / FT
Banks are losing their raison d’etre due to the erosion of their funding advantages versus non-banks. Which means they’re increasingly resembling listless entities devoid of purpose in a capital shadowland that’s not willing to let them move onto another more deathly plane.

The rise of BlackRock – The Economist
In 25 years, BlackRock has become the world’s biggest investor. Is its dominance a problem?

FINNISH
Suuri valiokunta erimielinen pankkien kriisinratkaisumekanismista – Verkkouutiset
EU-asioita käsittelevä eduskunnan suuri valiokunta hyväksyi kokouksessaan tiistaina hallituspuolueiden äänin lausuman koskien yhteistä pankkien kriisinratkaisumekanismia. Valiokunnan enemmistön mielestä esitetty ratkaisu vastaa olennaisilta osiltaan Suomen neuvottelutavoitteita.