In the European Union (EU), banking needs to be regulated as the current situation is similar to the “poker fever” of 2008 when everything was unstable but nothing was done. About this issue of Die Zeit declaration Gerhard Schick, former member of the Bundestag.
“We know how unstable things have been since at least 2008. Finally, we asked for guarantees, including that the interests of taxpayers would not be violated. But then the finance lobby curbed everything and now we have what we have. Of course, this takeover will calm everyone at first, but that doesn’t mean that the banking crisis is over at all,” said Şik.
According to him, there have been big leaps in the financial sector recently, like in 2008 when Lehman Brothers went bankrupt. At the same time, some reforms and regulations in banks began in 2008, but all changes were stopped due to the policy of the then ECB head Mario Draghi. As a result, the region left halfway is now unprepared for crises.
He added that in reality bankrupt banks should be liquidated. But in the case of Credit Suisse, the Swiss government was terrified because the organization has hundreds of subsidiaries that would be deeply impacted by the bank’s bankruptcy.
March 19 Deputy Governor of the Central Bank Alexey Zabotkin declarationHe is of the opinion that the main reason for the recent financial difficulties in the West is the extremely long loose monetary policy of the Fed and the ECB, the financial regulators of the USA and the European Union. As a result, American banks bought many assets at inflated prices.