The return on equity of the 19 largest internationally active banks has fallen considerably. It is a sign that was not solid hour of operation. In the last two years, the banks had to be neat feathers. The return on equity has fallen considerably. The U.S. government has now ventured a first step to prevent it. The discussions lead past the root causes of the crisis.
They have failed primarily because the state supervisory bodies. If one wants to avoid the mistakes of the past, we need an independent regulator, which can enforce its actions effectively without political interference.Specifically, the independent regulatory body should support the Treasury subordinate Federal Financial control. Another object of the supervision is to adopt new capital rules.
It is important that the provisions for the deposit of equity after the systemic risk of a bank set up. Nevertheless, what happens when a systemically important bank becomes insolvent? In this case, any bank to create a contingency plan that shows how the Bank can unwind in the bankruptcy case. Thus, the bankruptcy claims for savers and taxpayers are minimized.
Bank balances detoxify
The beginning of 2010 started with hope and fear. The hope is that continued in the first half of 2009 accomplished turnaround in the economy and the slight recovery will go on, after the economy had previously fallen dramatically. The fear is that the instability of the recovery in the face of a difficult liquidity position of the company may lead to another crash. The turnaround came earlier and harder than expected by most observers prior year period. This demonstrates the robustness of our economic system and it should always be encouraging. Nevertheless, despite the revival of 2010, it will be the critical year of crisis management.
Especially in the first, half of the year will show whether the chosen path has continuous expansion. Particularly critical, the threat of a credit crunch is rated, although an appropriate macroeconomic finding does not yet support this fear.