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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

Suing countries

Yesterday, the ECB was all the rage, because it had said to stop supplying four Greek banks with liquidity. Those banks now have to turn to the Bank of Greece, where they could access liquidity at a much higher price. Alphaville explainshow it actually works. So really, the ECB is playing the role of the parent who lets you suffer because it knows what’s best for you: cutting the money supply for the ‘unnamed four’ is apparently just the ECB’s way of nudging Greece towards a restructuring of their banksGreeks withdrew €1.2bn from their bank accounts on Monday and Tuesday, which sounds a lot more than ‘0.75% of all deposits‘. As for the June elections, the leftist parties are set to win – again. Maybe this time they can actually form a government. read article

In France, Francois Hollande has chosen his cabinet. As neither he, nor his appointed prime minister, have ever held a ministerial office before, they got a couple of people with actual experience around. Well done. Unfortunately for the EU and Angela Merkel, the choice of foreign minister fell on Laurent Fabius, who campaigned against the EU constitution in 2005. “Potentially controversial,” says the FT, “potentially disruptive to getting out of the mess,” says I. read article

As of this morning, Spain is confirmed to have re-entered a recession in Q1 of 2012, resulting in Moody’s announcement to downgrade 21 Spanish banks within the next 12 hours. This is following the downgrade of 26 Italian banks on Monday night. read article

Meanwhile in the Netherlands… Geert Wilders is so worried about the successful ratification of the European Stability Mechanism (currently pushed back in virtually every country, due to panic), that he is planning to sue the Dutch state to postpone the vote. His case: the current caretaker government is not elected and shouldn’t get to have a say in anything that big. read Dutch article

Speaking of law suits against countries: Repsol is suing Argentina – yes, the country. Or in other words, a Spanish oil company is suing a Latin American government in a New York court for nationalizing energy company YPF. read article

McSweeney’s Ben Greenman helps us to grasp the number ‘two billion’ in a Statement from the chairman regarding recent losses.

Also, potentially due to certain recent headlines, there is a JPMorgan elevator gossip Twitter account now, and no, I don’t expect it to be as good as the GS original.

So long.

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One Response

  1. […] the ECB has the power to decide the terms and also termination of ELA. Last week, you may remember, the ECB suspended liquidity aid for four unnamed Greek banks, which makes them […]

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