US EditionEU resurrects banking practice that caused the 2008 financial crisis
6 Articles
6 Articles
The European Union wants to reintroduce a banking practice that has been associated with the financial crisis since 2008, in an attempt to improve the financing of the European economy.
EBC Warns: EU Aims to Revive Controversial Practice
The European Commission plans to relax regulations on securitization—a process that contributed to the 2008 global financial crisis. The European Central Bank (ECB) is warning of potential dangers linked to this move, pointing to the risk of new speculative bubbles and hidden risks in bank balance sheets. The European Commission argues that reviving the securitization […] The post EBC Warns: EU Aims to Revive Controversial Practice appeared firs…
The concept of moral hazard gained popularity after the 2007-2008 crisis, when banks, mortgage creditors and insurance companies "totbig to fail" were saved by the US government through bailouts. In other words, in a free-market market, those who took too much risks (which they accumulated, because they deal with the risks: they accumulate, don't disappear, even if they are under price – it's mathematical, if you don't understand, asking Mr. Pre…
EU plays it dangerously: Is the strategy that led to the 2008 financial crisis coming back? The European Union is considering reviving a heavily criticized financial instrument that played a major role in the 2008 financial crisis: securitization. According to plans, the European Commission is to launch a new set of regulations to relaunch this market, in the hope that […]
EU aims to revive securitization market after years of decline
As it tries to encourage banks to lend more to the economy, the European Union is preparing to bring back the practice most often associated with the 2008 financial crisis. On Tuesday, the Commission will present a package of regulations to revive securitization, a method that has almost disappeared from the market for years. Securitization, in short, means that banks "package" and resell their claims, including doubtful ones, to investors. This…
Coverage Details
Bias Distribution
- 50% of the sources lean Left, 50% of the sources are Center
To view factuality data please Upgrade to Premium
