Could we see the set-up of a private sector European Recovery Fund?
A number of Europe's top bankers are currently in discussions regarding the potential creation of a private sector European Recovery Fund which could raise upwards of €20 billion a year to assist with future banking bailouts. It is believed that the significant investment required to fund the operation would effectively allow the banking arena to maintain independence from various governments within Europe and negate the need for government bailout funding in the future. But would this work?
While there is no doubt that the banking giants within Europe would rather maintain control of the sector in the event that future bailouts were required, whether the European Union would allow this remains to be seen. While the major emphasis would be on bailout funding, the idea for the European Recovery Fund would also see support offered in other areas of the financial arena such as changes in capital adequacy regulations and the ability for the fund to offer guarantees.
So far details of the proposition are relatively thin on the ground although we should see more information released into the public domain in the coming days and weeks. Whether the venture will actually get off the ground remains to be seen but the very fact that the banking arena is fighting back offers the potential for a very interesting discussion within the European Union.
Share this..
Related stories
Absolute return funds 'not faultless'
The volatile markets and negative returns should not put off investors in absolute returns funds, an investments expert has said.Dan Mannix, head of sales at RWC Partners, pointed out that any investment that was not totally risk-free had the potential to lose money some months.Exceptionally large falls on stock markets have been seen over recent weeks, with the FTSE 100 dropping by over 21 per ce...
Read MoreHave Royal Bank shares been oversold?
A report from Exane BNP Paribas today sheds a whole new light on Royal Bank of Scotland with the broker expressing an opinion that the shares have been oversold after being ignored by many during 2009. The broker believes that things can only get better for Royal Bank of Scotland in 2010 and while a planned disposal in Pakistan has collapsed due to regulatory issues it appears that investors are n...
Read MoreRoyal Bank of Scotland chief says sorry to shareholders
Sir Tom McKillop has today apologised to shareholders of the Royal Bank of Scotland after the group was dragged down in the wake of the credit crunch and ongoing economic slowdown in the UK. This was one of the most proactive and forward thinking banking institutions in the UK and had grown from a relatively small base over the last 15 years.
However in light of the credit crunch in...
Kraft Foods encouraged to increase Cadbury offer
Despite the fact that the Cadbury board has refused to even contemplate a bid from Kraft Foods, currently pitched around £7.50 a share, it seems as though investors in the UK chocolate giant are more than happy to talk numbers. At a time when the Cadbury's directors are looking towards the takeover panel to issue a "put up or shut up" notice to Kraft Foods, institutional investors have made it kn...
Read MoreUnited Biscuits in £2 billion takeover talks
United Biscuits, the company behind KP nuts, Twiglets and Jaffa Cakes has today it is in talks regarding a possible £2 billion Chinese takeover. Chinese operation Bright Food has apparently approached the company's private equity owners, Blackstone and PAI, with regards to a potential purchase. The company was acquired for £1.6 billion back in 2006 although it is believed the operation has signi...
Read More