European banking needs a state-led triage body
06 July 2009
A Solution for Europe’s Banking Problem would be the creation of a “European Bank Treuhand”, a fiduciary entity that would be created jointly by those countries with the main continental European banks.
A Solution for Europe’s Banking Problem would be the creation of a “European Bank Treuhand”, a fiduciary entity or trustee that would be created jointly by those countries where the main continental European banks are headquartered.
The Treuhand would have three main tasks:
· apply a trial (process in which things are ranked in terms of importance or priority) to all large or heavily cross-border banks
· serve as the catalyst for the intergovernmental negotiations to recapitalise and restructure those financial institutions that are insolvent
· manage those assets and institutions thus brought into public ownership on behalf of the owning national governments.
The full FT article is attached below.
© Financial Times
