Tuesday, 04 October 2016 20:50
By James D. Spellman, Washington, DC
Who bails out failed banks this time? With what means – public and/or private? And, to what extent to ensure safety, soundness in financial markets?
With numerous banks throughout Europe showing troubling balance sheets – the bad debts and non-core assets increasingly undermining financial institutions’ profitability in a sluggish global economy – Europe’s leaders, central banks, and investors are debating what should be done quickly to prevent bank failures, bolster investor confidence, and ensure that another global financial crisis does not flare up. On the sidelines of this week’s World Bank-IMF meetings, the issues are high among bankers’ concerns.