- Legacy bank debt mutualization would be problematic
- Sees banking union driving mutualization of risk
- Potential conflict in ECB becoming bank supervisor
- Banking union in itself can be stabilizing
- Banking union as a debt crisis solution is wrong
- ‘Exactitude must come before speed ‘ on bank union
Bloomberg reporting comments made by official in Handelsblatt
- Banking union needs mechanisms for winding down, restructuring debt
- Winding down, restructuring of banks must be funded jointly by banks, use tax money only in exceptions
- Putting ECB in charge of banking supervision would risk compromising primary goal of price stability
- Banking union can be pillar of support for currency union but its success depends on design, implementation
Reuters reporting comments made in same Handelsblatt commentary
EUR/USD sits at 1.2770, effectively unchanged from the North American close Thursday.
Buy orders seen clustered down around 1.2750. Sell orders seen lined up at 1.2800 through to 200 dma at 1.2810, buy stops above there.
