A key sticking point in the European policy debates over the banking sector concerns bank recapitalisation. As one would expect, the countries in crisis that have experienced a property bust like Spain and Ireland, would like to strip away some of the loss socialisation that is taking place as government takes on the debts of the financial sector. Germany has not allowed this to occur.
In fact, Germany completely backtracked on the June deal to bailout Spanish banks. Initially, the talk was o...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.